March 29, 2024

The road to understanding property tax

Confused about how property taxes are determined?

There are nine taxing entities in Union County – county, city, state, township, school district, community college, hospital, assessor, ag extension and schools. Each of these set their own levy. A levy is the number of dollars per $1,000 on a property. What entities individuals pay are based on where they live.

Each taxing entity has their own board, which includes elected officials. The boards set their own levy, or imposed tax, for its entity. The levies are then calculated together and that is what makes up property taxes.

With nine separate entities determining their own levies, is there a limit?

Sandy Hysell, Union County auditor said she doesn’t know about limits for each entity, but for the county levy, there are limits on specific funds.

With property taxes on the rise and a growing number of city and county projects requiring funding, it’s easy for those footing the bill – the tax payer – to feel frustrated. However, there are limits to the levy and there is a benefit to paying through the public, versus

Certain projects – such as those to upkeep infrastructure – like the emergency communications system or REA Road, are funded through bonding. Bonds are paid through property taxes, which are paid for by the entire county.

Hysell said these types of projects are “great” because everyone benefits, and because of this, the levies are low.

“We really do care and we really do want to keep the levies down as much as we can but you know everybody knows when you want to keep your infrastructure up you have to spend money,” said Hysell.

Role of the auditor

As Union County Auditor, Hysell has oversight of all the financial books and records of the county and is charged with administering the budget, and recommending appropriations of funds to the board to meet the county’s budget.

Currently, the county officials are creating a budget for Fiscal Year 2019 to 2020.

“I’m trying to predict six months from now to a year and six months from now, where we’re going to be at, and so are they and it’s hard,” said Hysell.

Before the budget can be approved and certified with the state, each entity makes its budget public and holds a public hearing within 10 to 20 days.

Your taxes

Approved levies are paid for by county residents and collected through county their property tax bill, which is due biannually, at the end of March and September. After the taxes are collected, they are certified by the county auditor’s office and then by the state.

Other influencers

The assessor does the valuations of property with codes to follow. The state can also mandate valuations in areas which is called an “equalization order,” which ensures owners of properties with similar full-market value pay an equivalent amount of taxes.

Rollbacks and credits also affect the amount property owners pay in taxes. Tax credits are available to residents who meet the requirements for the military credit, homestead credit and the family farm credit.

To understand the full scope of what money is requested or spent by the taxing entities, Hysell encourages tax payers to attend meetings.

“Go to these meetings, see what they’re doing, see what they’re spending the money on. That’s why they have to have public hearings,” said Hysell.