The original tax rate proposal would have increased the tax revenues raised by the city by $874,772 of which $575,342 would have come from Growth and $299,431 from a general tax increase to all classes of 2%.
The proposal to change the business tax ratio from 3.02 (as per original shakeout) to 2.70 will result in additional non growth taxes to the residential class of $375,600 and a reduction in taxes of $458,800 to the business class. ($83,200 balance comes from utilities and industrial classes.) This will result in the residential class taxpayer contributing an additional $803,717 or 8.50% of which 2.48% will come from growth and 2% from original tax increase and 4.02% will come from a manipulated tax rate increase.
Consequently the business class will have a reduction in taxes of $15,043 (-.32%)of which there is an increase of 7.32% due to growth and 2% from original tax increase and a reduction of 9.64% due to a manipulated tax rate decrease.
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Don Quixote Comment: I have no trouble with manipulating the business ratio downward but it should not happened solely by putting the burden on the residential class. As i explained in the posting Residential Taxpayers to contribute $375,600 more so Business taxpayers can get a Break ! there is money available elsewhere on the City's Books that could give the business class a ratio break without taking it out on the residential taxpayer.
This City should remember that the needed tax ratio changes in the Utilities and industrial classes that went unchanged in more than 15 years that will bring in an additional $83,200 this year and much more in the out years were initiated by this council after the constant harping and shit disturbing by Don Quixote and the Council watchdog. The dog and I will continue to fight about the business tax ratio and how it can changed downward each year but we have identified another class of taxpayer that has been undercharged and can be the source of business tax ratio adjustment.
Additional business growth should lower the residential burden not increase it.
Change the ratio to 2.70 but take the money from last years surplus. Be the first Council to have a reasonable 2% residential tax increase and a 7.64% effective business tax class decrease.
And don't give me the guff about how this works out only to a 1.34% increase on the average house valued at $287,028 as the average house tax increase would have been a decrease of 2.74% under the original business tax ratio of 3.02.( and remember we haven't even costed in the excluded fire protection increase of 5% (?).)
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