The formula for the limiting rate mathematically makes the adjustment for annexation or disconnection. The limiting rate is determined using the current EAV of property in the taxing district in the previous levy year. Taxes, however, are extended on the current EAV of both the property in the district in the previous levy year
and newly annexed property. Therefore, an additional extension is allowed in proportion to the amount of property annexed. For disconnections, the extension is similarly reduced proportionally.