CPI-U based calculation

[STEPHAN]

What is the name of your state? FL

Can you help me figure this out? I understand the index etc. But how does the last sentence fit in there?

The initial Annual Assessment established by the Association shall be Two Hundred Fifty and 00/100 Dollars ($250.00). Commencing with the Annual Assessment due on January 1, 2022, the amount of the Annual Assessment shall be increased in the same amount of any increase in the Consumer Price Index during the preceding year. For purposes hereof, "Consumer Price Index" shall mean the Consumer Price Index for All Urban Consumers (CPI-U), Tampa-St. Petersburg-Clearwater Average, published by the Bureau of Labor Statistics of the United States Department of Labor, All Items. The CPI-U established the Tampa-St. Petersburg-Clearwater numerical rating for the month of January 2021 as 239.135. This will be the base rating using 2020 as the base year for the Index.

Thank you!

 

[adjusterjack]

If this is about property tax assessments you should be calling the assessor for the answer.

 

[STEPHAN]

No. It is a payment for an easement and I need to figure out how much it will be on January 1, 2022.

 

[Taxing Matters]

No. It is a payment for an easement and I need to figure out how much it will be on January 1, 2022.

It means you use the base year figure established for the property/easement for 2020 and multiply that by the current month rate to determine the tax. In other words, they use the value of the property for 2020 as the starting point.

 

[FlyingRon]

Welcome back TM!

 

[STEPHAN]

Okay, let me try to explain my thought process. The easement was established middle of 2021. A prorated payment was made for that year.

I understand that the index was 239.135 in January 2021. I would look up the index in January 2022 and adjust accordingly.

(Right now the index is 255.851. Let us assume it stays the same for the next two months, I guess the payment would be $267.48.)

But why the reference to 2020?

What is my mistake?