(LFC Comments: Congratulations to Lance King, Tom Hach, and Rhnae King for their outstanding performances. Tom Niewulis must take a bow as the Director, Cameraman, Sound and Post Production Manager. Oscar winning performances by all!)
Let’s recap the HAT calculations:
Formula: (Monthly Mortgage + Utilities + Property Taxes) x 12 = Annual Housing Costs
$700 + $200 + $300 = $1,200 x 12 = $14,400 Annual Housing Costs
Annual Income = $45,000
HAT % = $14,400 / $45,000 = 32.0%
[For rental property, you would add the monthly rent and the utilities, and then multiply by 12 to get the annual housing costs.]
Impact of a 5 mill levy for a $100,000 house:
5.0 mills x $35.00 = $175.00
Additional income needed to pay the $175.00 without HAT % increasing:
$175.00 x .32 = $546.87 additional annual income
Impact on HAT% if no additional income:
Original Annual Housing Costs + Annual Property Tax Increase = New Annual Costs
$14,400 + $175 = $14,575
$14,575 / 45,000 annual income = 32.3%
What does a ‘continuous’ or ‘CPT’ levy mean to the taxpayers?
A continuous levy means that the taxpayers will pay the property tax FOREVER without the political sub-division having to be accountable to the taxpayers.
A ‘CPT’ levy means the same thing – a continuing period of time, and does not require the political sub-division to be accountable to the taxpayers since the levy never expires.