FAYETTEVILLE -- Rising property value in Washington County means more tax money for county services and budgets, but the amount isn't set in stone yet.
County residents have about three weeks until the Aug. 17 deadline to set an appointment through the county clerk's office to protest their property appraisals with the Equalization Board. The county this summer completed its first mass re-appraisal in five years. Taxable value as a whole is likely to increase about 6 percent over last year, though some owners might not see a change or could have a drop in value, Assessor Russell Hill said this month.
Hill credited a healthy market and robust construction, both of which have rebounded from the recession several years ago.
The change could put almost $400,000 more into the county's general fund from real estate alone, Hill said. More could come from personal property, but that number's still being tallied, he said. The totals could change as appeals go through the board.
Washington County receives less than one-tenth of property tax revenue for the sheriff, jail and other operations, snagging about $10.5 million last year. About 80 percent goes to the school districts, with the rest split among the cities and other public agencies.
Taxpayers with questions or concerns about the change in their property value can call the assessor's office first for an informal hearing, Hill said. From July 10 through Friday, almost 900 people had done so. Most seem satisfied with their answers, Hill said Friday; only about a dozen had scheduled Equalization Board appointments. Appointments begin Aug. 3.
"Actually, it's really going pretty smooth," Hill said, also acknowledging that residents have a few weeks left to raise objections.
If property owners aren't satisfied with the Equalization Board's ruling, they can appeal to the county judge, then Washington County Circuit Court and eventually the state Supreme Court if they choose, Hill said.
The additional revenue could be a small relief for the Quorum Court, which has already begun debating next year's county budget. The justices of the peace cut this year's budget to $59 million, about $4 million less than last year's, to rebuild a county reserve that has steadily dwindled in recent years. The county turns to its reserve for unexpected needs, emergencies and large construction projects.
The Quorum Court dipped into the reserve for the animal shelter, a $1 million payment to the state for fees the county missed and for other needs. Many members have said the county must rebuild its reserve further, perhaps through more budget cuts.
"Every little bit helps," said Eva Madison, a Fayetteville Democrat and representative of District 9 who has pushed to quell additional spending. Property taxes are collected the year after they're applied, meaning any benefit from the rise is months away. Besides the timing issue, she said, "[Revenue] is just not quite keeping pace with spending."
The possibility of raising property taxes to help with budget concerns has popped up occasionally in the past year or so among a minority of Quorum Court members. The county hasn't raised its millage since 2001, instead lowering the millage in 2011 by half of a mill, to 3.9 mills.
A county assesses property at 20 percent of its appraised value. A mill is one-tenth of a cent, with each mill producing $1 in tax revenue for every $1,000 of valuation. That amounts to $78 for the owner of a $100,000 home.
Butch Pond, a Republican representing rural District 15, suggested the millage cut was too deep during budget discussions last year. Democrats Ann Harbison, John Firmin, Barbara Fitzpatrick and Diane Bryant voiced similar opinions or unsuccessfully pushed to raise the millage by half a mill or by 1 mill. One mill would mean about $20 more per year for the owner of a $100,000 home.
Of those justices of the peace, only Harbison and Pond remain on the Quorum Court. So far, Pond is the only justice of the peace who has raised a millage increase option.
In last year's budget cuts, the county denied most departments' capital requests for new vehicles or other equipment. If the county must do so again, "I'll say it again, maybe we cut [the millage] a little too much," Pond said at the Quorum Court's July 13 meeting.
The idea hasn't found much support on the Quorum Court.
"That's all that budgeting is about: strict control of expenditures," Tom Lundstrum, an Elm Springs Republican and representative of District 1, said at the same meeting.
Metro on 07/27/2015
Correction: Tom Lundstrum's political party was misstated in a previous version of this story. The error has been corrected.