New Property Tax Rate Takes Effect Today
Photo by Jeff Depew
Jefferson County enters a new fiscal year, as June turns into July. As of the first day of July, 2024, the new property tax rate will be $1.43. After recapitulation numbers were received from the state, Jefferson County property tax payers were sitting at a $1.34 property tax rate. The adjustment came in late last month in answer to a sharp increase in property assessments for many local property owners. Counties that see significant increases in property assessments are adjusted by the state to assure that the amount of money that is brought in by property tax does not see an increase due to assessments in the same fiscal year and to keep the projected revenue level. The leveling adjusted the property tax rate to $1.34 for the fiscal year that ended June 30, 2024.
As of late June, Jefferson County Commissioners were struggling to bridge a budget gap for the fiscal year that starts July 1, 2024. Loss of revenue from the Wheel Tax and uncontrollable increases in insurance, as well as a cost of living raise for employees, left Jefferson County facing a deficit north of $1.6 million dollars. Generous cuts to budget heavy departments and adjustments to the timing of large purchases trimmed the shortfall from more that $3 million dollars to the $1.6 mark but, with no other large areas to cut, the full body of the Jefferson County Commission made a 12-4 decision to increase property tax by 9 cents to balance the 2024/2025 budget. Though the 9 cent property tax increase was eventually passed by the full body, it initially failed in a tie vote.
Several Commissioners spoke to their reason for voting for or against the initial motion which restored $20,000 in cuts to CARE and $4,000 in cuts to Safe Space and raised property taxes to $1.43. District 1 Commissioner Katy Huffaker was one such commissioner that spoke regarding the proposal. Following the meeting, Commissioner Huffaker expounded on her statement; “I was not on the Budget Committee this year and have been grateful because it was so challenging due to inflation and the current economic state. The initial budget was reduced significantly in order to try to balance it without a property tax increase. Since the wheel tax was not passed and no other viable options were passed, the only way to balance the budget was to increase property taxes. It is not easy to be a County Commissioner when the votes are difficult like this one. I am elected to represent the citizens of Jefferson County in every situation and I prayerfully try to make the best decisions possible. In this case I felt like there was no other option available and I made the hard decision to support the proposed tax levy. I didn’t want to increase property tax nor did any of the other commissioners. However, in order to continue with county services and not let the state dictate our local budget, we made the hard decision to increase the property tax rate by 5.9%.” Following discussion, a motion was made by R. Coleman ( of the prevailing side) and 2nd by Thomas to revisit the original motion and, this time, it found favor with 12 Commissioners for approval and the passing of a balanced budget. Voting No were Commissioners Blevins, Bales, Walker and Solomon. The fund balance will absorb around $36,000 in the 2024/2025 budget and losses that will be incurred at the landfill due to loss of permit and the inability to offer commercial services ( $125,000) will be absorbed by the landfill budget.
