| Property tax revenue calculator | |||||||||||||
| Example based on the proposed apartment complex development near P&C | |||||||||||||
| Prepared by Steve Yurgartis, with help from Dave Fenton. Tax rates from 2011. | |||||||||||||
| REVENUES BEFORE | REVENUES POST-DEVELOPMENT | REVENUES POST-DEVELOPMENT | TOWN | VILLAGE | |||||||||
| DEVELOPMENT | WITH ANNEXATION | NO ANNEXATION | TAX | TAX | |||||||||
| RATES | RATE | ||||||||||||
| ASSESSMENT | $128,400 | $16,000,000 | $16,000,000 | ||||||||||
| Town | Village | Town | Village | Town | Village | ||||||||
| TAXES | |||||||||||||
| VILLAGE GENERAL | $0.00 | $0.00 | 0 | $239,840.00 | $0.00 | $0.00 | 0.00 | 14.99 | |||||
| TOWN GENERAL | $288.38 | $0.00 | $35,935.30 | $0.00 | $35,935.30 | $0.00 | 2.25 | 0.00 | |||||
| PART TOWN | $0.00 | $0.00 | $0.00 | $0.00 | $0.00 | $0.00 | 0.00 | 0.00 | |||||
| HIGHWAY | $24.40 | $0.00 | $0.00 | $0.00 | $3,039.94 | $0.00 | 0.19 | 0.00 | |||||
| POTSDAM FIRE | $97.85 | $0.00 | $0.00 | $0.00 | $12,193.50 | $0.00 | 0.76 | 0.00 | |||||
| TOTAL BY GOV'T | $410.63 | $0.00 | $35,935.30 | $239,840.00 | $51,168.74 | $0.00 | |||||||
| Gain | |||||||||||||
| TOTAL FOR COMMUNITY | $410.63 | $275,775.30 | $51,168.74 | ||||||||||
| Notes on possible options: | |||||||||||||
| A) If the town board develops the property by providing water and sewer via annexation, the town property tax revenue will increase by $35,525. | |||||||||||||
| At the same time, the village property tax revenue would increase by $239,840. | |||||||||||||
| B) If the town board insists on preventing annexation, and the village board persists in it's policy of not providing water and sewer unless | |||||||||||||
| the property is within the village, then it is likely the development will not happen, and no one gets any increase in revenue. | |||||||||||||
| C) If the town board insists in preventing annexation, and the village board relents and provides water and sewer anyway, three things happen: | |||||||||||||
| 1) The town gains an additional $15,233 in revenue. | |||||||||||||
| 2) The village board puts existing businesses in the village at a disadvantage by asking them to pay full village taxes while subsidizing another business | |||||||||||||
| by providing w/s without asking for full village taxes. | |||||||||||||
| 3) Village residents (who represent about half of the town population) are deprived of $239, 840 in revenue. | |||||||||||||
| For want of $15,233 in revenue, the town board is requesting that the village board put existing businesses at a disadvantage and deprive village residents | |||||||||||||
| of $239,840 in revenue. Is this a reasonable community benefit analysis from the town board? You can see how the village board finds it difficult | |||||||||||||
| to understand the town board's position. | |||||||||||||