County residents may see property tax decrease

The release of Cape Girardeau County's general sales tax report for June gives county officials a few reasons to feel hopeful.

Most monthly reports for 2015 have been positive -- an encouraging sign considering how sluggish numbers have been in recent years. But those numbers are part of a bigger equasion that could lower property taxes.

The revenue generated in the first six months of the year is significant because it is used to calculate the property tax levy. A measure approved by Cape Girardeau County voters in 1979 allows the county to collect a sales tax; the measure calls for the reduction of the property tax levy by 50 percent of the sales tax collected.

Because the full year's numbers are not available when county staff make the determination in September, an estimate is used, multiplying the revenue collected in the first six months by two.

So far, $3,630,174.42 in revenue has been collected, according to the June general sales tax report released this week by the Cape Girardeau County Treasurer's Office. That's 7.75 percent higher than the total reported in June 2014. The 2014 mid-year report also was 1.25 percent lower than the total for June 2013.

The six-month estimate the county uses to calculate a number for the year's sales tax sometimes is lower or higher than the actual total reported in December. The deficit or surplus is carried over and included in the calculation for the next year's levy. When the county makes its calculation this year, Treasurer Roger Hudson said it will include a surplus of more than $149,000, which means a bigger reduction.

"Last year, when the sales tax came in, the number we used was lower than what we actually got [at the end of the year], so we had to adjust our number," he said. "The past two years, it went the other direction; the first six months were higher than what we actually got [for the year]."

These factors indicate a likely decrease in the county's property tax levy. It was set last year at $0.0609 per $100 assessed valuation. This would be the first decrease since 2012, the year the county had to bring the levy rate up from zero because sales tax revenue no longer was sufficient to cover expenses.

But Hudson said it's not possible to say with certainty whether the decrease will happen. If the state auditor's office changes the tax rate ceiling, that could affect the calculation, although Hudson said a change is unlikely.

The factor to watch out for, Hudson said, is the county's assessed valuation. This is an assessment year, meaning property values are reassessed to reflect current values and new and improved properties are added to the county's assessed valuation total. The county's assessed valuation for 2014 was about $1.208 billion. A rise in assessed valuation can make the property tax rise, because the property tax levy rate formula takes into account the total assessed valuation of the county and how much property tax the county could collect on that property.

County Assessor Bob Adams said the 2015 county assessment will be calculated by June 30. Constructions and additions throughout the county will contribute to a higher value, but he said overall, there will not be a large increase.

srinehart@semissourian.com

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