Taxes have a way of showing up

Happy Monday! Let’s talk about taxes.

Relax, it won’t be the civics lessons I had planned when Friday came to an end. The original thought, based on the County Commission having budget public hearings Wednesday, was a deep dive at all county taxes that compose the budget.

JWC Inner Circle members gave me that idea. Such as this one:

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“I would like to have a breakout of federal funding or state funding that’s being passed from the feds to the state to the county. As money at the federal level is being pulled back, it is going to have huge impacts.”

That is a tremendous question. We’re seeing federal cuts impacting the Citrus County School District. What trickle-down should we expect on the county level?

Unfortunately, I don’t have that answer. Maybe a commissioner has the same question.

Another great question I can’t answer:

“Number one concern: What is the funding plan for the infrastructure required to meet the projected growth for the next 5-10 years?”

I mention these questions for a reason. They’re not the kind of inquiries I’m used to seeing at budget time.

See, most people just complain about taxes and the county budget without having a clue what’s in there. We blame the county for lousy roads, then blame the county for passing taxes to fix those lousy roads.

Not sure why people think the government works in a special cocoon that protects it from the same economic reality that hits the rest of us. 

Steve Howard, the mild-mannered Citrus County administrator, always makes folks cringe when he talks about “the F bomb” — funding. We can move the rocks, the sun, and the stars with funding. We can’t repave a mile of street without it.

Funding comes from several sources. I’m going to focus on the taxes our County Commission controls, mainly the property tax.

The county proposes no change in the millage, which calculates property taxes. That doesn’t mean no tax hike. We debate this with politicians every year. They say no millage increase is the same as no tax increase, but that’s not true. Remember that the tax rate is a mathematical formula. If the taxable value of my property increases 2%, and the millage stays the same, my taxes go up 2%.

Because exemptions water down the property tax significantly, Citrus County commissioners have sought an alternative revenue source for decades. 

That’s why they like fees, or MSBUs (municipal services benefit unit, for those keeping score at home). Those are a one-size-fits-all approach, with fewer exemptions that are more specific to individual needs.

They’re also easier from an accounting and planning standpoint. Fire Chief Craig Stevens is proposing a hike in the fire services MSBU — $79 to $125. He has specific plans for that extra money: additional firefighters, better equipment, and updating fire stations.

Commissioners would much rather approve a flat fee, even one with a big boost, than goose the property tax even a smidgeon.

Every year for as long as I can remember, commissioners spend budget time saying they need to find other sources of revenue. Yet, we still have the same menu.

Where they want to go, but are unsure how the public feels about it, is less reliance on property taxes and more reliance on MSBU fees. Or, even MSTU (municipal services taxing unit), which are like property tax trust funds. There was talk of implementing a law enforcement MSTU under the former sheriff to keep his spending under public scrutiny.

So, unless the board goes for a titanic shift, property taxes are it.

Here are links to this year’s budget and the proposed budget. They’re super easy to read and understand. Please take a look.

— Reminder that today is the last day to participate in the online local option sales tax survey. The number of responses is in the low-to-mid hundreds, and I haven’t a clue what participants are saying. I certainly hope the fine folks behind this effort release the raw results to citizens before they go to the County Commission in August.

OK, I’m done. Have a great Monday, friends.

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