Do the math

Property in Hamilton County is a hot commodity!
It’s a seller’s market, to be sure, whether you are looking to buy a single-family home, a small acreage out in the country on which to build a house, or some prime Hamilton County farm ground. As locals have known for a long, long time this is a good place to live, work, and raise a family, corn and soybeans, which is reflected in a red-hot real estate and ag land market.
Some homeowners and farmers may be grumbling a bit this week about the impact of that soaring sales trend. A story in this week’s edition reports that more than 6,000 letters were sent to local residents whose property valuations have gone up, in many cases way up. Prime 1A1 irrigated farm land went up from $6,550 to $8,100 per acre in the last year, according to Hamilton County Assessor Pat Sandberg. That’s an increase of 23.66 percent, which is a significant number for producers to factor into their bottom line. 
Many residential properties went up 9 percent or more, Sandberg reported, again based on recent sales trends. That change in assessed tax value wasn’t based on the bedroom edition you added on or the new storage shed in the back yard, which would be easier to stomach. Your house is worth more on paper than it was a year ago today, even if it’s exactly the same. 
That’s a harsh dose of economic reality in today’s world, but don’t shoot the messenger. Sandberg and her staff are simply complying with state statutes which dictate that property valuations are kept in compliance with Nebraska Department of Revenue standards based on three years worth of sales data. Those numbers have been consistently high, she said, which is translating now into market-driven changes in existing property values.
How exactly will all the rising values impact your personal property tax bill, whether you own a home, commercial property or farm that covers hundreds if not thousands of acres? That’s the multi-million dollar question every year come tax budget time in the fall, and it will be worth even more in 2024.
On the surface, a soaring valuation makes it look like there is more money in the coffers, seemingly there to be spent, which is a dangerous if not completely false premise. There are so many challenges facing elected officials in this era. However, there should be an equally pressing concern regarding taxpayers’ ability to fund local government operations.
One way to sort through all the numbers and changing dynamics is to focus on the tax asking number in pending local budgets, not the tax levy itself. Simple math tells you that leaving the levy the same or even dropping it slightly can add up to drastic spending increases when multiplied by the valuation in specific jurisdictions. Aurora 4R Public Schools’ total valuation, for example, went up $106 million last year, thus a flat levy pencils out to a significant jump in tax asking. Those are the numbers that matter to local residents, business owners and farmers.
Though legal notices posting budget and levy requests from local taxing entities aren’t due for two months yet, the budgeting preparation process is well underway. It’s too soon to know specific particulars, but what we do know for certain is that a flat levy will mean a higher tax bill. That math is pretty simple.
Few if any residents typically show up for the required budget hearings in August and September, though in reality now is a good time to voice your concerns. Call your elected officials. Write a letter to the editor. Talk to your family members or business associates about the impact an increasing tax bill will have on your own budget. 
The best way to impact those numbers is for citizens to engage in the process and let your voice be heard. 
-- Kurt Johnson