How less could become more
Same mill levys could mean much bigger tax bills
Staff writer
Dramatically increased appraisals mean mill levys throughout Marion County could fall substantially and still give government units the same amount of money.
Or, if taxing units ignore so-called revenue neutral rates and keep mill levies the same, their take — and individual tax bills — could rise substantially.
Which way elected officials go will be debated between now and Oct. 1 in the wake of County Clerk Ashley Herpich’s official report, released this past week, of total appraised values in each taxing district.
In the City of Marion, for example, the current tax rate of 70.728 mills could be reduced by 9.6% to 63.967 mills, and the city still would receive the same amount of money, according to analysis of Herpich’s data.
If, on the other hand, the city chose to keep its mill levy at 70.728, the city’s take from property taxes would increase 10.6%, more than four times the current inflation rate.
For the owner of a typical home valued at $100,000, the difference would amount to $77.98 a year — either $813.37 in city taxes at the current mill levy or $735.39 at the revenue-neutral rate.
This, of course, would be only a small part of the homeowner’s total tax bill, which would include amounts for county, school, hospital, extension, recreation, drainage, and other taxes the homeowner would pay.
Very little of the increase in appraised value appears attributable to new construction or improvements but rather to increased valuation of existing properties.
A home valued at $100,000 this year might very well have been valued at only $90,400 last year.
Because of that change, keeping the mill levy the same as last year’s would result in the homeowner paying 10.6% more in taxes for the city alone.
Here, by selected taxing units, are the current mill levies for each unit and the percentages by which taxes would increase if elected officials ignore revenue neutral rate and keep their mill levies the same:
COUNTY
Marion County 72.907 4.4%
CITIES
Burns 70.930 9.8%
Durham 25.686 8.5%
Florence 89.217 11.5%
Goessel 51.119 9.2%
Hillsboro 39.989 5.3%
Lehigh 74.797 8.5%
Lincolnville 56.531 10.0%
Lost Springs 20.989 9.5%
Marion 70.728 10.6%
Peabody 87.345 8.2%
Ramona 101.350 6.6%
Tampa 49.512 6.4%
SPECIAL DISTRICTS
St. Luke Hospital 9.038 3.6%
County Lake improvement 2.333 9.2%
Eastshore improvement 2.587 –7.2%
Pilsen improvement 11.395 20.4%
Goessel recreation 1.099 4.8%
Hillsboro recreation 0.923 5.2%
Marion-Florence recreation 0.999 5.9%
Peabody-Burns recreation 1.999 2.3%
SCHOOL DISTRICTS
(excluding state-mandated 20-mill general levy)
Centre 19.947 4.2%
Peabody-Burns 26.994 2.2%
Marion-Florence 32.360 5.9%
Durham-Hillsboro-Lehigh 21.697 5.2%
Goessel 34.256 4.7%
In only one case — that of the Eastshore improvement district — would taxes decrease if current mill levies are maintained.
Traditionally, most larger taxing units in the county have opted to exceed revenue neutral rates and benefited from windfalls received from rising appraisals.
State law provides somewhat of an incentive for units to report that they plan to exceed the revenue-neutral rate.
Taxing units must notify the county clerk’s office no later than July 20 if they plan to exceed the rate. If they opt to stick with revenue neutrality, they cannot change that decision afterward.
If, however, they report that they plan to exceed the revenue neutral rate, they have until Sept. 20 to determine an actual mill levy.
Public hearings at which taxpayers may object or question budgets are required. They typically occur between July 30 and Sept. 20. At least 10 days before each hearing, the taxing unit must publish its proposed budget in the newspaper.
In reality, most budget decisions are made well before budget hearings, and few taxpayers show up for the formal proceedings. Detailed spending plans typically are developed during budget request sessions conducted well before the hearings.
Final tax rates aren’t officially set until November, after a final round of appeals of tax appraisals is heard by the county assessor’s office.