A closer look at local taxes

Where do my taxes go? That?s the question on every taxpayer?s mind, especially now that it?s time to pay income taxes to the federal government. But let us not forget local taxes. Which local entities consume large shares of your tax bill and which consume very little?

The taxes a person pays vary depending on the town he lives in and what kind of land he owns. Agricultural land is taxed differently from land in an urban area. Rural residents pay a separate tax to the county and a tax to their township. Businesses and residences are also taxed differently.

A business?s taxable valuation is the same as its assessed valuation. A residence, on the other hand, is only taxed for 48.5 percent of its assessed valuation. The end result is that a business will pay twice as much in taxes as a residence for property with the same assessed value.

A resident of the city of Washington has a total tax liability of $42.50 per $1,000 of taxable valuation for the current fiscal year. That is the highest rate in the county. If the resident owns a house whose taxable valuation is $100,000, the resident will pay $4,250 in taxes.

The next highest levy is for Coppock residents, who pay $41.1 per $1,000 taxable valuation. More than half of their tax bill ($22.4) goes toward their school district, which is the WACO Community School District. Crawfordsville residents are right behind at $40.9. Crawfordsville also pays into the WACO School District.

Brighton is next in line at about $38 per $1,000 taxable valuation. Wellman and Ainsworth residents pay $35, while those in Kalona pay $33. Riverside and West Chester residents pay $32.

Residents whose land is classified as agricultural land in the town pay a lower levy than those in town. That levy is $3 per $1,000 throughout most of the county. Wellman does not charge its agricultural landowners any taxes.

All city-dwellers, regardless of the town they live in, pay the county $7.9 per $1,000. All rural residents pay the county $10.5. Rural residents do not pay city taxes but do pay township taxes. Township taxes typically support projects such as cemeteries. Oregon township is the only township that charges its residents $1 per $1,000. Most other townships charge about 50 cents per $1,000.

WACO charges the most of any school district in the county at $22.4. Washington School District is next in line at $17.46, although that number will drop to $16.90 next year. Highland School District charges $16.4, while Winfield-Mount Union charges $15.3. The school districts of Mid-Prairie ($13.7) and Keota ($13) charge the least in the county.

Approximately 41 percent of a Washington resident?s tax bill goes to the Washington School District. How does the Washington School District spend the money? About 88 percent of the school?s $17.46 levy goes to the general fund. Of that $15.34, 80 percent pays for salaries. The other 20 percent pays for school supplies such as paper and those kinds of things.

Voters in the Washington School District approved a Physical Plant and Equipment Levy (PPEL) earlier this week, which is $1 per $1,000 valuation. In the 2010-2011 fiscal year, the PPEL represented 6 percent of the school?s total levy. The money pays for infrastructure such as buses and building repairs.

About 5 percent of the levy goes toward property and casualty insurance. That also pays for workman?s compensation. Another 2 percent of the levy supports a separate PPEL account. That PPEL fund is initiated by the school board and not by a popular referendum, although the two accounts fund the same projects.

The city government?s share of a resident?s total tax liability for the current year is 34 percent, or $14.48 per $1,000 valuation. The clerk/administrative department consumes the largest share of the budget at 14 percent. The police department is not far behind at just under 14 percent. Road use represents 12 percent of the city?s budget, while the water plant and debt service are 10 and 9, respectively. Sewer collection takes up 7 percent and water distribution is another 7 percent.

The city spends 4 percent of its expenditures on its sewer plant itself. The fire department, airport and sanitation consume 4 percent. Parks constitute 3 percent of the budget. All other budget items represent no more than 2 percent of the budget.

Washington residents pay 16.5 percent of their local taxes to the county government. They pay 2.4 percent to the Washington County Hospital and Clinics, and 2.2 to Kirkwood Community College. About 2.2 percent supports county mental health services and one percent goes to the county assessor. The county agricultural extension takes in 0.5 percent and the Iowa Department of Agriculture consumes 0.008 percent.