Because property values have fallen over the past 12 months and the Jackson County Board of Commissioners set the 2011 property tax rate pretty much at last year’s levels, county taxpayers might actually see lower tax bills this fall than last.
Meeting Friday afternoon, the board set the rate at 9.58 mills for incorporated areas, which is up three one-hundredths of a mill over last year, and at 8.61 mills for unincorporated areas — the same as last year.
The difference between the two sets of rates is because residents of unincorporated areas get a rollback from the proceeds of the insurance premium tax collected by the county. Residents of municipalities do not get that rollback because the cities also collect (and spend) that tax.
Tax bills are expected to go out by Oct. 20, with a due date of Dec. 20.
Also on Friday, the board approved its fiscal year 2012 budget totaling $65.7 million, an increase of $3.5 million or 5.64 percent, over the FY 2010 budget. The General Fund budget of $35.6 million is down $133,228 from last year.
“It has certainly been very challenging,” finance director John Hulsey told the board as he recommended the rates.
To balance the budget, county employees will experience 12 furlough days again in 2012. In addition, county employees choosing lower health insurance deductibles will pay more for insurance, the county will draw down its reserves by $2.2 million and, for the third consecutive year, there is no contingency fund. If the sale of heavy equipment produces the expected $1.75 million, the use of reserves will drop accordingly, Hulsey noted.
He pointed out that due to tax appraisal challenges, the county tax digest dropped $22 million since the commissioners advertised their proposed tax rates and five-year tax history.
“That means the county lost $22,000 a mill,” Hulsey observed. Overall, the property tax levy is expected to produce 4.5 percent less revenue than in 2011, a decrease of $855,740.
