Wheel Tax Facts
Update: September 2009 Actual Numbers
Basic fact:
Taxes of:
$200,000 house($50) = 1 car($50)
$400,000 house ($100)= 2 cars($100)
For most average citizens in Washington County the Wheel tax would have cost you more money than property taxes would have.
Some other Facts everyone needs to know.
A $50 Wheel Tax is the trade off for a 21 cent increase in property tax
Update $50 Wheel tax Equals 14 cent Property tax
2005-2006 Property tax $2.00
2006-2007 Property 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. No actually 14 cents: September 2009 update
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
2009 Update
14 cent per Hundred=$52
Household has one car= $50 Wheel tax
County appraised property $400,000
25% of value $100,000
21 cents per hundred= $210
Household has 4 cars=$200 Wheel Tax
2009 Update
14 cent per Hundred=$104
Household has 2 cars= $100 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 = $242
5 cars used through the property= $250 Wheel Tax
2009 Update
14 cent per Hundred=$168
Household has 4 cars= $200 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.