Executive Insight

With tax season upon us and ongoing discussions about federal spending dominating the news, I thought it would be helpful to provide a breakdown of our county’s budget. This article focuses on your local tax dollars—the money collected directly by the county. Next week, I will get deeper into the overall county budget. The figures used are from the current fiscal year, which ends on June 30th.

The primary sources of local tax revenue are property tax, sales tax, and the wheel tax, with property tax being the largest contributor. Before we dive in, it’s important to understand that there are three main government departments: the Education Department, the Highway Department, and County General, which encompasses everything else. The county commission allocates revenue to these three funds each year in the budget. Once allocated, these funds are used at the discretion of each department and cannot be transferred between departments.

Property Tax Calculation

Property tax is calculated based on the property’s assessed value (determined by the property assessor, who is elected by the people) multiplied by an assessment ratio (set by the state, generally at 25% for most properties). This amount is then multiplied by the tax rate (currently $2.05 per $100 of assessed value set by the county commission). For example, if your property’s assessed value is $100,000, the calculation would be as follows: Property value x 0.25 = $25,000 $25,000 / 100 = 250 250 x $2.05 = $512.50 (your property tax bill)

Property Tax Allocation

We anticipate collecting $11,580,798 in property tax revenue this year. Approximately 70% ($8,106,558) goes to County General, funding the Sheriff’s Department, court system, jail, courthouse maintenance, parks and recreation, and more. The remaining 30% ($3,474,240) is allocated to the school system, controlled by the school board. The Highway Department does not receive any property tax funds.

Sales Tax and Wheel Tax Allocation

We estimate local sales tax revenue to be around $7,900,000. Of this, 50% goes to the school system, 19% to County General, and 31% to debt service. These are budgeted figures, and exact amounts will be determined at the end of the fiscal year.

The wheel tax is expected to generate approximately $1,100,000, which is divided among all three departments to pay for insurance, as originally intended. Unfortunately, this revenue is no longer sufficient to cover total costs and must be supplemented by property tax funds.

I hope this explanation clarifies where your local tax dollars go. Next week, I will provide a detailed analysis of the total county budget.

Thanks, D.W.