By Eric Pool

August 6, 2023

Its budget season again and the talking heads are already starting with the "we're going to lower the levy this year, we're not raising taxes." line of BS. Nope, your taxes are most likely going up this year because none of the political subdivisions are going to let go of the available money from the 11-12% increases in property valuations this year. We will show how the property tax collection dollars request is calculated; and we don't think they will lower the levy enough to offset the valuations increase. Hence, we all get a tax increase. Don't let them pull the wool over your eyes with the "we are lowering the levy this year" line. Its a sham. Those who set the levy are accountable for all tax increases and decreases. 

Property tax collection request is simply the amount of money a taxing political subdivision (City, County, Schools, etc) request in a given budget year. The dollars of tax requested is figured by simply multiplying the valuations of a political subdivision, example the city of Sidney, times the mill levy (tax rate per $1000 of value). So how does that look on paper?

2022 property tax request: City of Sidney

(A)$456,370,527 X (B).574936 = (C)$2,623,840

A) The property valuations for the City of Sidney for 2022-2023

B) The levy set by the City manager and the City council for 2022-2023 during budget talks (per $1000).

C)The calculated Property tax request Dollars.

D) New valuations calculated with 11% increase in property values per the state of NE and the county assessor.

This year's valuations for the city increased by 11-12%, the assessor will have the final numbers in the next several weeks but she has confirmed the valuations will rise a minimum 11%. That is the number we will use, 11% increase.

(A)$456,370,527 x 1.11 = $506,571,285 is the new valuations of the city of Sidney for 2023-2024, figuring the 11% increase.

So you can see there is a much larger base of dollars to multiply the levy by to get the property tax request. Lets use the levy from the 2022-2023 and the NEW valuations and see the property tax collection potential. 

(D)$506,571,285 x (B) .574936 = $2,912,460. 

As you can see, the new valuations with the current levy makes property tax collection dollars jump by $300,000! That's a HUGE tax increase!!!

So to put it simply the levy has to be lowered, regardless, or there is a massive tax increase. Officials aren't doing any heroics here. The levy has to be lowered to .517960 based on the new valuations increase of 11% for the taxpayers to not have a tax increase. This would collect the SAME property tax dollars as the current year and NOT have a tax increase. It is highly unlikely that any of the political subdivisions will lower the levy that much and keep the property tax collection the same. We feel they will lower the levy a little and keep a modest tax increase and claim they did the taxpayers a great service. We WILL get a tax increase because of the continued lack of fiscal restraint and accountability.

Remember, get informed and do your own research. Don't be afraid to ask questions; and don't let fear and emotion override logic.