This project was put together with affordability in mind with a constant eye toward rising property taxes and our community’s ability to pay. Tax impact is a difficult thing to calculate, but we’ve provided two charts below showing the town payments over the life of the 20 year $2.99M bond and the expected tax impact on homeowners per $100,000 of property value, depending on your income.
The bond is applied to property taxes and roughly breaks out like this for homeowners:
- Households earning less than $50,000/year are not affected
- Households earning between $50,000 and $90,000 pay some modified, capped amounts (see links to charts at bottom of page)
- Households earning over $90,000 pay at a rate of $114 per $100,000 of home value.
49% of homeowners – 489 properties – pay the full tax amount
36% – 362 properties – are capped to some modified amount
15% – 148 properties – pay no tax due to income sensitivity adjustments
These numbers are calculated for the first year of the loan, which is the most expensive. The tax amount decreases over time as the interest and principle are paid off.
A few other things to note:
- This is based on current tax formulas adopted by the legislture, which may change
- Adjusted tax rates apply to a house and two acres, acreage beyond is counted at a different rate
- This calculation is based on the first and most expensive year of the 20 year bond
- FICA withholdings are not counted in your income