BLOUNTVILLE – The Sullivan County property tax rate for the next fiscal year will be based on every penny generating $ 414,670, based on information shared publicly for the first time on Tuesday.
This year’s budget was based on every penny generating $ 371,674.
The change in the value of a dime is due to the growth in property assessment across the county as it is a reassessment year for Sullivan County.
In back-to-back Sullivan County Commission administrative and executive committee meetings on Tuesday afternoon and evening, county finance officials presented the first estimate of what each penny of the tax rate will generate based on of the new county-wide valuation of $ 4.304 billion, plus $ 126 million in utilities, minus $ 88.86 million for tax increase funding (TIF) projects on the role of county taxation. This equates to an estimated valuation of $ 4.34 billion for the county’s revenue calculation.
The tax rate this year was $ 2.57 (per $ 100 of assessed value). Based on a projected collection rate of 95.5%, the tax rate was budgeted to provide $ 95.57 million in revenue.
The state certified tax rate for Sullivan County this year, designed to offset taxpayer tax bills due to growth resulting from the reassessment, is $ 2.3132.
If you divide this year’s budgeted income from the tax rate of $ 2.57 by the estimated value of a dime after appraisal ($ 414,670), you get $ 2.3047.
The tax rate will increase.
The county budget committee is due to meet at 4 p.m. on Wednesday to set the tax rate (i.e. one hour after a legally required public hearing on the budget). A majority of county commissioners last year approved a loan to finance the construction of new prisons, on the understanding that the move would require a tax hike this year to cover debt service payments.
The county’s proposed budget provides $ 5.805 million in new debt service money from county property tax revenues. Members of the budget committee agreed last week to recommend the transfer of $ 2 million in school property tax revenues (the $ 1 million decrease in the county’s school system will be covered by a $ 1 million increase in the system’s share of sales tax revenue on local options).
The entire $ 5.805 million would require an increase of about 14 cents above the certified tax rate of $ 2.3132, Commissioner Colette George said at one of the meetings on Tuesday.
If the full commission approves the recommendation to redirect $ 2 million from the school tax rate to debt service, the amount could drop to about 9 cents.
The entire committee must vote on the proposed budget at a meeting called on June 29.