Wic omic o County R Wic omic o County R e ve nue Cap e ve nue - - PowerPoint PPT Presentation
Wic omic o County R Wic omic o County R e ve nue Cap e ve nue Cap De ve lo pe d By: T De ve lo pe d By: T he Gre ate r Salisbury Co mmitte e he Gre ate r Salisbury Co mmitte e Data Co lle c tio n and Analysis Pro vide d By: BE Data Co
De ve lo pe d By: T he Gre ate r Salisbury Co mmitte e Data Co lle c tio n and Analysis Pro vide d By: BE ACON at Salisbury Unive rsity De ve lo pe d By: T he Gre ate r Salisbury Co mmitte e Data Co lle c tio n and Analysis Pro vide d By: BE ACON at Salisbury Unive rsity
L
imits the County’s r e ve nue fr
e al pr
ty taxe s
T he Co unty’ s re ve nue c an inc re ase by 2% fro m the pre vio us ye ar o r the CPI
T he max re ve nue inc re ase is the minimum be twe e n CPI
Whe n re al e state value s de c re ase , the pro pe rty tax rate c an inc re ase . Whe n re al e state value s inc re ase , the pro pe rty tax rate c an de c re ase T he o bje c tive o f the re ve nue c ap is to limit waste ful g o ve rnme nt spe nding and e liminate une xpe c te d larg e tax inc re ase s L
imits the County’s r e ve nue fr
e al pr
ty taxe s
T he Co unty’ s re ve nue c an inc re ase by 2% fro m the pre vio us ye ar o r the CPI
T he max re ve nue inc re ase is the minimum be twe e n CPI
Whe n re al e state value s de c re ase , the pro pe rty tax rate c an inc re ase . Whe n re al e state value s inc re ase , the pro pe rty tax rate c an de c re ase T he o bje c tive o f the re ve nue c ap is to limit waste ful g o ve rnme nt spe nding and e liminate une xpe c te d larg e tax inc re ase s
T he c ap o nly wo rks in an e nviro nme nt whe re inflatio n is 2% o r le ss T he lang uag e o f the c ap make s Co unty re ve nue s fall be hind the to tal allo wable re ve nue . T he CPI
e xpe nditure s. T he re ve nue c ap is no t de sig ne d to ac c o mmo date unfunde d state o r fe de ral mandate s T he re ve nue c ap do e s no t have an e me rg e nc y c o nting e nc y pro visio n to allo w e le c te d
e c o no mic disruptio ns T he c ap o nly wo rks in an e nviro nme nt whe re inflatio n is 2% o r le ss T he lang uag e o f the c ap make s Co unty re ve nue s fall be hind the to tal allo wable re ve nue . T he CPI
e xpe nditure s. T he re ve nue c ap is no t de sig ne d to ac c o mmo date unfunde d state o r fe de ral mandate s T he re ve nue c ap do e s no t have an e me rg e nc y c o nting e nc y pro visio n to allo w e le c te d
e c o no mic disruptio ns
T
he County has be e n unable to c olle c t and use ove r $15 million dollar s fr
2006-2016
CPI
Sho uld this c o ntinue to o c c ur, the Co unty will c o ntinue to lo se o ut o n millio ns o f do llars at a faste r rate o n a ye ar-to -ye ar basis. 48% o f the Co unty’ s re ve nue is fro m lo c al pro pe rty taxe s T he Co unty’ s re ve nue is use d to fund public se rvic e s (e duc atio n, public he alth and safe ty, fac ilitie s, e tc .) T
he County has be e n unable to c olle c t and use ove r $15 million dollar s fr
2006-2016
CPI
Sho uld this c o ntinue to o c c ur, the Co unty will c o ntinue to lo se o ut o n millio ns o f do llars at a faste r rate o n a ye ar-to -ye ar basis. 48% o f the Co unty’ s re ve nue is fro m lo c al pro pe rty taxe s T he Co unty’ s re ve nue is use d to fund public se rvic e s (e duc atio n, public he alth and safe ty, fac ilitie s, e tc .)
Due to pr
e vious tax inc r e ase s be low the c ap, the c ur r e nt taxe s ar e be low pr ior le ve ls whe n adjuste d for inflation
I f the c urre nt tax rate is inc re ase d by 6%, the o wne r o f a me dian value ho me in the Co unty ($172,400) wo uld o nly pay $99 mo re that ye ar in pro pe rty taxe s Co mpare this to having a 16o z c o ffe e fro m Starbuc ks 3x pe r we e k:
1 ye ar c o sts = $612
T he inc re ase s in pro pe rty taxe s c o lle c te d c o uld be use d to impro ve ro ads, e duc atio nal se rvic e s, building s, and o the r public se rvic e s use d by re side nts I nc re ase s in pro pe rty taxe s c an also pro vide c ushio n fo r the Co unty ag ainst re c e ssio ns that will limit public se rvic e s to re side nts Due to pr
e vious tax inc r e ase s be low the c ap, the c ur r e nt taxe s ar e be low pr ior le ve ls whe n adjuste d for inflation
I f the c urre nt tax rate is inc re ase d by 6%, the o wne r o f a me dian value ho me in the Co unty ($172,400) wo uld o nly pay $99 mo re that ye ar in pro pe rty taxe s Co mpare this to having a 16o z c o ffe e fro m Starbuc ks 3x pe r we e k:
1 ye ar c o sts = $612
T he inc re ase s in pro pe rty taxe s c o lle c te d c o uld be use d to impro ve ro ads, e duc atio nal se rvic e s, building s, and o the r public se rvic e s use d by re side nts I nc re ase s in pro pe rty taxe s c an also pro vide c ushio n fo r the Co unty ag ainst re c e ssio ns that will limit public se rvic e s to re side nts
Chang e the lang uag e o f the c ap to be able to take the hig he r o f CPI
Using a diffe re nt inflatio n inde x (S&L I PD) inste ad o f the CPI
I mple me nt a safe ty valve whic h allo ws fle xibility to c ap limits in c ase o f drastic e c o no mic c hang e s. T ypic ally re quire s a majo rity vo te e ithe r by the public o r pre -de te rmine d bo ard. Using ho me ste ad e xe mptio ns (save o n taxe s o n a pe rso n’ s ho me ) o r c irc uit bre ake r pro g rams (be ne fits to taxpaye rs, with be ne fits inc re asing as inc o me s de c line ) I mple me nt a sunse t/ re se t c lause whic h will auto matic ally te rminate the c ap afte r a fixe d time pe rio d unle ss it is e xte nde d. E liminatio n o f the re ve nue c ap? Chang e the lang uag e o f the c ap to be able to take the hig he r o f CPI
Using a diffe re nt inflatio n inde x (S&L I PD) inste ad o f the CPI
I mple me nt a safe ty valve whic h allo ws fle xibility to c ap limits in c ase o f drastic e c o no mic c hang e s. T ypic ally re quire s a majo rity vo te e ithe r by the public o r pre -de te rmine d bo ard. Using ho me ste ad e xe mptio ns (save o n taxe s o n a pe rso n’ s ho me ) o r c irc uit bre ake r pro g rams (be ne fits to taxpaye rs, with be ne fits inc re asing as inc o me s de c line ) I mple me nt a sunse t/ re se t c lause whic h will auto matic ally te rminate the c ap afte r a fixe d time pe rio d unle ss it is e xte nde d. E liminatio n o f the re ve nue c ap?