Webster County landowners will face a hike in real property taxes but it will not occur until next year.
This article will address the reasons why and how a property tax hike will occur.
In recent years, the County is spending considerably more than it takes in. From 2008 to 2012, revenue has declined $509,968.40, while spending has increased $1,192,276.14. In the past fiscal year alone (from July 1, 2011 to June 30, 2012), the County spent over $800,000.00 more than it took in. Because the County has certain financial reserves to cover that $800,000.00 deficit, all bills have been paid to date.
However, when the current fiscal year ends on June 30, 2013, the County will have depleted all of its reserves. In order to keep the next fiscal year's budget balanced, the County will have to either make certain cuts or raise taxes to cover the shortfall. Declining coal severance tax revenues, substantially increased Regional Jail fees, and ballooning employee related expenses have all contributed to the budget mess (see links at end of article).
To fix the budget problem, in addition to some spending cuts that could cover part of the deficit, the County will be faced with raising property taxes.
Earlier this month, new Assessor Max Cochran published a notice that said: "I am notifying all real property owners of Webster County that for Tax Year 2013 all real property will be assessed at 60% of its current market value. This may result in a general increase in the assessed value of your real property, including natural resource property, by 10% or more. This is the average overall increase but individual assessment increases may vary." The notice goes on to say that "if you disagree with the value of your real property, you may appeal the valuation to the County Commission..."
Does that mean that Assessor Max Cochran is raising your property taxes this year?
Answer: No. Not this year. But next year? Yes, but only because the law requires it.
The notice published by Cochran is required by law and simply tells property owners that their property is already being assessed at 60% of its value, and that if you disagree with the current assessment of your property as its value is already listed on the property books, you can dispute the value before the County Commission. These assessed values will remain the same when your tax bill comes out in August of this year. In other words, Max Cochran is not doing anything to change the assessed value of your property when your receive your next bill and therefore your taxes will not go up.
Next year (i.e., 2014), however, is a different story. Cochran did tell the Commentator recently that his office will be re-evaluating the manner in which properties are valued, which will have the effect of an across-the-board re-appraisal of properties. This is required by law and by the State Auditor, Cochran said. That across-the-board increase in assessments will affect your tax bill when they come out in August, 2014.
Many properties in Webster County are currently well under-valued and the new assessment will result in tax increases because of the higher across-the-board assessment. By law, if the increase in valuation is more than 10%, the Assessor must individually notify that property owner in writing of the increase so that the property owner can appeal the valuation to the County Commission. Since it is too late to increase valuations this year because the County Commission must hear the appeals in February of each year, Cochran said the new valuations will impact landowners in the next tax year (i.e., the bills that come out in August, 2014).
Many properties in Webster County are currently well under-valued and the new assessment will result in tax increases because of the higher across-the-board assessment. By law, if the increase in valuation is more than 10%, the Assessor must individually notify that property owner in writing of the increase so that the property owner can appeal the valuation to the County Commission. Since it is too late to increase valuations this year because the County Commission must hear the appeals in February of each year, Cochran said the new valuations will impact landowners in the next tax year (i.e., the bills that come out in August, 2014).
So, if Max Cochran is not raising your real property taxes this year, who will likely do so this year, if anyone?
Answer: No one. It is too late to raise property taxes this year.
The Commentator contacted Ora Ash, Director of Local Government Services with the West Virginia State Auditor's office, to inquire whether the Webster County Commission could raise its "levy rate" to raise property taxes. Property owners pay a certain amount of taxes per $100.00 of valuation of their property, which is known as the "levy rate." Ash confirmed that Webster County's levy rate is at its maximum allowable by law of 14.3 cents per $100.00 of valuation. Since Webster's levy rate is at its maximum, the County Commission can not by law raise taxes by raising the levy rate.
Ash did tell the Commentator that a County could propose an "excess levy" to raise property taxes. An "excess levy" could add up to an additional 7.15 cents per $100.00 of valuation to a landowner's tax bill if the excess levy was approved. An excess levy has to pass by 60% of the voters in the County, and Ash commented that "you don't see many new levies approved."
Since the Commission can not raise property taxes by raising the levy rate since it is already at its maximum rate, and since an excess levy would not likely be approved by the voters, the only way Webster County can raise property taxes is by raising the valuations of property, as set by the Assessor's office. And that will not occur this year, but will impact your property taxes in 2014.
The Commentator contacted Ora Ash, Director of Local Government Services with the West Virginia State Auditor's office, to inquire whether the Webster County Commission could raise its "levy rate" to raise property taxes. Property owners pay a certain amount of taxes per $100.00 of valuation of their property, which is known as the "levy rate." Ash confirmed that Webster County's levy rate is at its maximum allowable by law of 14.3 cents per $100.00 of valuation. Since Webster's levy rate is at its maximum, the County Commission can not by law raise taxes by raising the levy rate.
Ash did tell the Commentator that a County could propose an "excess levy" to raise property taxes. An "excess levy" could add up to an additional 7.15 cents per $100.00 of valuation to a landowner's tax bill if the excess levy was approved. An excess levy has to pass by 60% of the voters in the County, and Ash commented that "you don't see many new levies approved."
Since the Commission can not raise property taxes by raising the levy rate since it is already at its maximum rate, and since an excess levy would not likely be approved by the voters, the only way Webster County can raise property taxes is by raising the valuations of property, as set by the Assessor's office. And that will not occur this year, but will impact your property taxes in 2014.
For some of our prior articles describing the budget mess, please click on this link:
More money going out of paychecks, if one is still lucky enough to have a paycheck. I wish I could tell my boss he has to give me a raise when my expenses outweigh my income. That's not going to happen, so, I spend less on non-essentials (and even some essentials) to be able to pay things, like utilities, gas, property taxes.... Oh, right....government doesn't have to do that!
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