(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 = $57,600

HAT % = $14,400 / $57,600 = 25.0%

[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 property tax per year

Additional income needed to pay the $175.00 without HAT % increasing:

$175.00 / .25 = $700.00 additional annual income to retain the 25% HAT

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 / $57,600 annual income = 25.3%

When the HAT % reaches 30% then your home is deemed unaffordable for you.  You may not have to move, but your ability to pay your “needs and wants” are going to suffer.

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.

Categories: Community Activism

Tags: FT