Math that matters

It’s number-crunching time for local taxing entities, as well as tax-paying citizens, and to be honest the numbers and variables involved this year could make the average home and business owner’s head spin.
How exactly will all the rising values and changing formulas 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 this time of year, and in 2023 the only constant seems to be change.
A story in this week’s ANR reports that total valuations in Hamilton County went up to a whopping $3.26 billion. That’s a record, of course, but what’s staggering is the dollar value represented in that 6.9 percent growth, as property values went up a combined $212 million in a single year. The 2019 total came in at $2.88 billion, which means that the ag land, commercial buildings and residential properties in our county are worth $382 million more than they were just four years ago. That’s a reflection of our progressive county, in some ways, but also just an incredible economic shift and sign of our times.
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 in a single 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.
Another critical factor in this year’s budgeting process is the monumental change in the state’s public school taxing formula. Lawmakers made a generational shift in the 2023 session by guaranteeing public schools more state aid, which will have a dramatic impact on local levies and budgets. The goal was to begin shifting the burden away from property taxes, though as expected there is devil in the details as to how it pencils out at the local level.
Elected board members deserve to hear from you, the taxpayers, about how you feel on this issue. Citizens have that opportunity during budget hearings, which typically draw little if any feedback, unfortunately.
As always, the News-Register will publish budget notices and report the final totals and tax levies, but the best way to impact those numbers is for citizens to engage in the process and let your voice be heard. Elected officials need to know you are paying attention, and that, in fact, you care.