Monday, October 30, 2006

The numbers I was talking about tonight...

Here is a breakdown of what I was talking about in my sales tax statement.

No matter what, any increase will be off of a smaller base, so therefore no matter the percentage increase, property taxes would always be less:

Property Tax Rates:

Year w/o sales tax w/ sales tax savings
2007 $ 5.00 $ 4.35 $ 0.65
2008 $ 5.10 $ 4.44 $ 0.66
2009 $ 5.20 $ 4.53 $ 0.68
2010 $ 5.31 $ 4.62 $ 0.69
2011 $ 5.41 $ 4.71 $ 0.70
2012 $ 5.52 $ 4.80 $ 0.72
2013 $ 5.63 $ 4.90 $ 0.73
2014 $ 5.74 $ 5.00 $ 0.75

In the example above, we impliment the sales tax in 2007, or we don't. The difference is $0.65 per 1000 0f the tax rate. We then increase both by 2% per year.

In this example, it will will be 2014 before the rate with the sales tax catches up to where it was in 2007 without the sales tax.

In the meantime, the owner of a $100,000 house pays over $550 in extra property taxes.

There would have been real savings.

1 Comments:

Anonymous Anonymous said...

Wonderful idea Jef, start a brand new tax and tell us that it will save us money!

maybe the county board should look at the massive glut of buildings and programs that they have before they start new taxes

hell you guys couldn't even cut $1200 in coffee and doughnuts for the County Board

2:53 PM  

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