EFFECTIVE TAX RATE IMPOSED IN TOWNSHIP : A GOOD THING, But they are too dependent on sales tax.
And the CAFR is wrong.
Credit must be given when it is due. No other taxing entity in the county ( that I am currently aware of ) has set a proposed tax rate at what is know as the effective tax rate. That is, the rate at which tax revenue is neutral this year over last year and the tax payer pays exactly the same amount of dollar as they did regardless of the the latest mass appraisal by the Central Appraisal District.
That is a very good thing, not as desirable as a real reduction in tax dollars over last year but almost.
The Chronicle has reported that the Woodland Township has “proposed a 23 cents per $100 valuation tax rate for 2016 – a two cent reduction from the current 25 cents – as it planned a budget of $132.1 million in expenditures.” And explains that “it settled on the effective rate set by the Montgomery County Tax Assessor’s Office.”
Tax Assessor/ Collector Tammy McRae told County Citizen by telephone that such a move is unusual, and it is. What the downside to this? Well for one, the Township relies very heavily on sales & hotel tax for the lions share of its revenue. In excess of $57 Million out of $101 Million in 2014!
No risk of that ever softening you say. I hope you are right.
The board, even the fiscally reserved ones are having a great time dishing out funds to this or that project. Lots of gravy. Now they want us to incorporate ASAP but worry about the 90 Million price tag.
But they continue to run the train on very rich gravy. Water Taxis, ice skating rinks. Bread and circuses. And lots of money for consultants. Hey, I will gladly tell them what to do for half the price and save them a water cruiser load of money.
One small data discrepancy has bothers me, The Township CAFR page 64 shows the past years tax rates as follows. The CAFR is an official audited document that should be reliably accurate. We pay top dollar for our help at the township. Maybe we need some new blood on the board that is paying attention.
| Tax Year 2014 | 0.2500 | 0.2290 | 0.0210 | 0.2721 | 0.2700 | 0.2910 |
| Tax Year 2013 | 0.2940 | 0.2703 | 0.0237 | 0.2960 | 0.2715 | 0.3169 |
| Tax Year 2012 |
0.3173 |
0.2910 |
0.0263 |
0.3202 |
0.3001 |
0.3504 |
| Tax Year 2011 |
0.3250 |
0.3046 |
0.0204 |
0.3199 |
0.2996 |
0.3439 |
| Tax Year 2010 |
0.3274 |
0.3065 |
0.0209 |
0.3250 |
0.3250 |
0.3719 |
P.s. when ever you speak to an elected official about taxes, tell them you want to see a history of the effective tax rate vs. actual tax rate for each year beginning in 2000 published on their website.
However, this notice does say “If The Woodlands Township adopts a 2015 tax rate equal to the effective tax rate of $0.2300 per $100 of value, taxes would increase compared to 2014 taxes by $884,583.” It would be great to know why the increase?
