County needs value hike to avoid increase in taxes
Published 12:00 am Wednesday, June 10, 2009
A small increase in Warren County’s total private property values is about the only way to head off a second, consecutive tax increase, supervisors said.
Preliminary work on setting values is complete. In the process, the tax assessor uses state-set criteria to assign values to new construction and to property for which the use is ceased or changed. Additionally, a fourth of all tracts are revalued in Warren County each year and assigned values usually rise, even if market prices are falling.
For this year, Warren County’s total property values grew half a percent, prompting a county tax rate increase that left tax bills about $28 higher for every $100,000 assessed.
The values are also used to collect City of Vicksburg and Vicksburg Warren School District property taxes, but those rates were not changed for this year.
“If we have a 1 percent (growth), we can probably keep the millage rate where it is,” District 1 Supervisor David McDonald said.
Though areas mainly in the southwestern portion of the county were re-evaluated this year, three hotels completed in 2008 at Vicksburg’s most heavily traveled thoroughfares, casino development and lower fuel prices could keep county taxes level for the coming year.
Courtyard by Marriott, LaQuinta Inn and Suites, and Wingate by Wyndham will come on the tax rolls this year, Tax Assessor Richard Holland said, as well as Riverwalk Casino and improvements at Ameristar Casino. Agricultural land values will drop a second time, Holland said, by about 10 percent.
A wary eye is being cast on the Legislature, which ended a stop-and-start regular session last week without agreement on a state budget — which could jeopardize counties in terms of highway project subsidies and salary shares for state employees at county-level offices.
“It still looks like 1 percent because of our new construction,” Board President Richard George said. “I hope people (in the Legislature) will settle their budget. If their budget is not in order, it’s going to affect ours.”
Counties and cities operate on a fiscal year that starts each Oct. 1. Budgets are prepared in August and tax rates set in September.
Before this, values grew an average of 3.5 percent for five consecutive years and the city, county and school tax rates remained even, letting the increased valuations provide additional money each year.
As fuel prices shot up to $4 a gallon — with a peak of $4.71 for diesel — and values slowed, departments requested and received more allocations for energy needs, funded by a rate hike of 2.79 mills for this year. Other portions of the $486,216 in projected new spending in the county’s $15.7 million budget was pay for the initial round of planning for a new jail, which continued this month with site visits. A final draft is expected by year’s end.
Each year, the county also seeks legislative permission to collect taxes to donate to charities selected by the supervisors. District 1 Supervisor noted that amount was cut by 10 percent this year.
Holland expects to update the board on the land rolls and mull three applications for tax exemptions by local industry June 22. Supervisors will equalize the rolls upon their formal presentation July 6, a process that usually takes a week and is aimed at consistency between assessments and value. From there, the public has 30 days to view their property status and file a written challenge if they object.
Holland said taxpayers with expected hikes of more than $5,000 in the true value of their parcels will be notified by mail this year, beginning later this month, though he doesn’t foresee as many going out this year.
“It’ll be quite a bit less this year because values are lower,” Holland said, adding last year’s 1,600 notices mailed should drop to about 1,000.
Information on the notice includes the property owner’s name, address, parcel location and identification numbers. Upon receipt, those receiving them who have questions are asked to contact the Tax Assessor’s Office.
Those receiving notices last year represented 6 percent of Warren County’s 25,650 landowners.
Budget requests have begun to arrive from individual departments, with extensive discussion to begin in late July. While that schedule should remain mostly intact, the board decided last week to cut back their weekly informal meetings to the second and fourth Monday — following official sessions on the first and third Monday.
In recent years, agendas for the late-week sessions have ebbed and flowed with the makeup of the board itself. Supervisors said the rotation was shifted to allow more time to tend to other commitments if items ran short on substance.
“I’d hate to have a meeting just to have a meeting,” McDonald said.
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Contact Danny Barrett Jr. at dbarrett@vicksburgpost.com