Commissioners set to adjust tax rate
Warren County residents may soon find themselves with a considerably lower property tax rate for 2004, but most will see little change in their total tax paid.
The change is due to this year’s reappraisal of property done by the state. The reappraisals are done every six years and take into account the increase in value of real estate, as well as new construction and other factors.
According to figures from property assessor Carolyn Miller’s office, the total tax base for Warren County is $717 million. Miller and her staff added $22.5 million in newly taxable property this year, which breaks down to $13 million in new construction and $9.5 million in tangible personal property.
Since the state’s reappraisal has shown a substantial increase in the county’s tax base, this would result in an automatic property tax increase if the county’s current property tax rate of $2.53 was left unchanged, a situation that is technically illegal since the Warren County Commission is required to set the county’s property tax rate by majority vote.
“You’re not allowed to increase property tax by their reappraisal,” said County Executive Kenneth Rogers.
As a result, when the reappraisal system was put in place, provisions were made to prevent this situation by allowing the state to calculate an adjusted tax rate that would keep the total tax paid by county residents at or near the same levels.
According to Miller’s office, that suggested rate for 2004 is $2.31, a reduction of 22 cents from the current rate of $2.53. The city of McMinnville would see a drop in its rate from the current $1.60 to $1.48, a decrease of 12 cents.
However, local officials were quick to point out these figures are not written in stone, and the County Commission and McMinnville Board of Mayor and Alderman may decide to take steps to set different rates, either lower or higher.
“You can have public hearings on it and raise it,” Rogers said, “and you can lower it without hearings. But to raise it, you have to have public hearings.”
According to Rogers, this restriction only applies for the year when the reappraisal takes effect. Rogers said the commission will set the adjusted tax rate for 2004 some time this year, perhaps as early as the next meeting in June.
Rogers said he will recommend adopting the state’s suggested tax rate to the County Commission.
“I want to see it stay the same as it is,” he said. “I’m totally against property tax increases due to the fact we’re suffering the loss of jobs. With this new sales tax and the schools working with us on this, I see us coming out way ahead just right where we’re at. It’s time that we start working within our means, and think we owe it to the citizens of Warren County to keep property tax as low as possible and still provide the services that they deserve here in Warren County.”
Others in the commission expressed concern that the school system in might get shortchanged should the commission opt to set the rate lower than suggested by the state, as was done with the last reappraisal readjustment in 1998.
“We behaved very unwisely and irresponsibly when we did that,” said commissioner Bill Zechman. “Because that set in motion a series of fiscal disasters that we’re still paying for today.”
Zechman said he hopes at least some of the new tax money be devoted to funding local pay raises to teachers and school personnel, reducing student-to-teacher ratios, as well as other vital projects.