Wheel Tax Facts

 

Some Facts everyone needs to know.

 

 

A $50 Wheel Tax is the tradeoff for a 21 cent increase in property tax

 

Current proposal is this:

Last year's Property tax   $2.00

This budget year's tax   $2.35

 

24 cents to balance the county budget ($4.8 million increase over last years budget) and 11 cents for debt service on the $138 million in bonds (This bond will cost the taxpayers a quarter of a Billion dollars to pay off, including interest)

 

Note: The 21 cents is reduced to 11 cents until July 1, 2008 because of interest earned on the bond money that the county already has. The 21 is the REAL number.

 

The Commission voted for a $50 Wheel tax to take effect on July 1, 2008(next year budget)

Next year's proposed tax structure:

 

$50 Wheel Tax AND $2.24 in property tax

 

If no Wheel Tax:

$2.45 in property tax (increased by 21 cents)

 

There are 3 problems we all should have with this scenario.

 

1. The commission is trying to create a NEW tax so it does not look like they have over spent. Better to have 2 medium size tax increases than one super large one.

 

2. There is absolutely NO guarantee that the 11 cents will come off the property taxes next year, even if they get the wheel tax. If they get the wheel tax they are more likely to spend that money. If they do not get the wheel tax, one would think they would be more fiscally responsible!! The commission has only stated they MAY take the 11 cents off. Who can trust that?

 

3. According to the way the Commission presents the numbers, they need over an additional $4 million for items not related to the issue of the $138 million in bonds. That is a lot of money in one year, especially as they tout the growth of the county......

 

Basic tax scenario For Debt service ONLY:

County appraised property $200,000

25% of value $50,000

21 cent per hundred =$105 in increased property tax taxes

Household has 2 cars=$100 Wheel Tax

 

County appraised property $400,000

25% of value $100,000

21 cents per hundred= $210

Household has 4 cars=$200 Wheel Tax

 

 

 

Commercial property is taxed at a 40% rate

County appraised commercial property $300,000

40% of value $120,000

21 cents per hundred = $252

5 cars used through the property= $240 Wheel Tax

 

These are low property and commercial values but a person can see where the real influence for a Wheel Tax over a property tax really lies.

 

  • Taxes paid as part of a Property Tax are deductible on your income tax. The Wheel tax is NOT tax deductible.

 

  • If it has a Washington County tag and is self propelled, it will have a Wheel Tax.

 

  • This does include Motorcycles.

 

  • Most non-profit organizations do not pay property tax; they WILL pay the Wheel Tax.

 

  • If the County establishes a Wheel Tax, expect higher over all taxes next budget year.

 

 

The Wheel Tax favors owners of the most costly homes and penalizes the average Washington County resident.

 

  Special interest groups put pressure on the county commissioners to totally reverse their positions from the prior commission meeting where the wheel tax failed to pass on three separate votes.

 

It is not surprising the county commissioners did not want to put this wheel tax to a vote in the last elections. They knew it would fail.

 

The Wheel Tax is a sham move to hide the money being spent by the commissioners and to make it look like we have lower taxes than we really do.

 

NOW IS THE TIME TO SIGN THE PETITON AND ALLOW ALL THE PEOPLE TO VOTE AND TELL THE COMMISSION HOW THEY FEEL.