An Iolan owning a home with an appraised value of $100,000 will pay property taxes of $1,859.94 this year to support Iola, Allen County, USD 257 and Allen Community College budgets.
That’s $400 more than 10 years ago.
Most of the difference is Allen County’s tax bill. County tax on that $100,000 home increased by 76 percent to $777.78, from a levy of 67.633 mills. The county’s levy 10 years ago was 39.34 mills.
A levy of 1 mill raises $1 for each $1,000 of assessed valuation. Residential properties are assessed at 11.5 percent of appraised value, meaning a home with a market value of $100,000 is assessed for tax purposes at $11,500.
Iola’s share of taxes on a $100,000 home — the model used because it is easy to extrapolate other home values from it — for 2012 increased $66.32.
Taxes going to USD 257 and ACC changed in fractional amounts compared to the county and Iola. USD 257’s increased $7.67; ACC’s went up a minuscule 89 cents.
Collectively when applied to various assessed valuations, the numbers show that in the past 10 years tax dollars collected, in which Iolans have a role, have increased by $5.1 million, or 81 percent. The total for the four entities in 2002 was $6,297,447; this year it is $11,397,596.
THE INCREASE came about because of a perfect taxing storm, higher valuation coupled with higher mill levies. Either one alone would have meant collection of more tax dollars; county commissioners felt it necessary to raise mill levies coupled with the higher valuations.
The Russell Stover Candies plant, which had a 10-year tax abatement from when it opened in the early 1990s, and the new Wal-Mart store were major contributors to increased valuation of local real estate. Properties are reappraised every four years.
Numbers used for this year’s budget — from 2011 appraisals — have residential property at $36.3 million ($24.3 million in 2001), agricultural just under $7.8 million ($11.9 million in 2001) and commercial and industrial property at $17 million ($10.1 million in 2001). Agricultural improvements increased from $1.6 million to $2.5 million.
The third valuation category is state-assessed utilities, of railroads, telephones, electrical distribution and pipelines. The total jumped from $11.5 million to $15.6 million. The main increase was in value of pipelines, including content, that went from just under $5 million to $8.3 million.
MANY EXTERNAL forces affect budget revenue and consequently the effect on taxpayers through mill levies.
Local ad valorem tax relief (LAVTR) was discontinued by the Kansas Legislature when the state experienced revenue shortages in the run-up to the recession.
