Washington County Commissioners discuss property and income tax cuts

Washington County residents might probably see tax cuts for the upcoming fiscal yr — ought to the county’s price range proposal be accredited.

The county commissioners on Tuesday voted unanimously to incorporate within the proposed price range a 2-cent lower to the property-tax price and a discount from 3% to 2.95% for the income-tax price.

The cuts would go into impact if the commissioners approve the proposed price range as-is on Might 24. A price range public listening to is scheduled for Might 17.

With the county anticipating to see a big quantity of surplus this yr, in accordance with Kelcee Mace, interim chief monetary officer for the county, the commissioners have mentioned over a number of weeks the place this surplus might be used.

“We’re not going to know what the excess is till someday in Might,” County Administrator John Martirano stated.

The present actual property-tax price is 94.8 cents per $100 of assessed valuation. A 2-cent lower to 92.8 cents per $100 of assessed worth would end in a discount of over $3 million in income for the fiscal yr that begins July 1.

By the use of instance, a home valued at $250,000 would have a tax invoice of about $2,370 — with the present property-tax price. With a property-tax price lower of two cents, the tax invoice can be $2,320 — a $50 financial savings.

County Commissioner Wayne Keefer stated in the course of the commissioners assembly this week the property-tax price is tied to the county’s enterprise private property-tax price.

The county’s private property-tax price is 2 and a half occasions the true property-tax price.

“It impacts mom-and-pop retailers, companies in the neighborhood,” Keefer stated. “So, whereas we’re trying … to assist our property homeowners, our residents in Washington County, even renters, profit from this. As a result of that is much less in property taxes that your landlord must pay.”

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He added that the property-tax lower might have constructive ramifications for a lot of within the county.

For the present fiscal yr, the typical home-owner paid $2,341.56 a yr in county property taxes, in accordance with Keefer. The common revenue tax return experiences taxable revenue of $50,980. At a 3% income-tax price, a median particular person pays $1,529.40 — with a complete of $3,870.96 of mixed property taxes and revenue taxes.

“That is important for my household,” Keefer stated. “I am positive it is important for a lot of households … that is what we ask each household to pay in taxes.”

‘A win-win for everyone’

In 2019, the county commissioners voted to extend the income-tax price for the primary time in 19 years to three.2% — which went into impact on Jan. 1, 2020. 

Commissioners President Jeff Cline, Commissioner Randy Wagner and former Commissioner Cort Meinelschmidt voted for the rise. Commissioners Vice President Terry Baker and Keefer voted towards it.

The commissioners have made makes an attempt to roll again the income-tax price, voting final yr to chop the speed to three%.

Commissioner Charlie Burkett, Baker and Keefer have spoken prior to now about their objections to the rise, with Burkett being vocal about returning to the income-tax price earlier than the rise — 2.8%.

Through the commissioners assembly this week, Baker advised lowering the county income-tax price to 2.95%.

“I would be on board with that,” Burkett stated. “If we wished to be conservative as an alternative of taking it again to 2.8 and … go (virtually) midway there.”

Burkett shared the identical sentiment as Baker about being thoughtful of the following board of commissioners with an election developing this yr. 

Along with property-tax charges and revenue tax, the commissioners voted for the price range to replicate no enhance in water and sewer charges.

“It has been a win-win for everyone,” Burkett added.

The county commissioners are nonetheless scheduled to have a price listening to for water and sewer charges because of lab payment will increase, in accordance with Mace.