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April 4 Ballot Chock Full ‘O Taxes

19 Mar

April 15 is usually thought of as tax day, since that’s the deadline for filing your federal income taxes. But tax day in Jefferson County might come 11 days early this year. There are many tax proposals on the municipal election ballot. Obviously, each of these taxes only pertains to people living within the boundaries of the listed political entity. Let’s take a look at the proposals:

We will start with Byrnes Mill, which is swinging for the fences with three tax increases, one property tax hike of 40 cents per $100 valuation and two half-cent sales taxes.

byrnestax

Byrnes Mill’s current tax rates are as follows:

  • Property tax:
    • 40.35 cents per $100  – so they want to DOUBLE it. If passed, Byrnes Mill would go from second lowest to second highest property tax among cities in the county, behind Pevely’s 88.77 cents.
  • Sales tax:
    • 8.35% – total sales tax (including state, county, ambulance district, etc). If Props R and I both pass, Byrnes Mill would have the highest total sales tax rate in the county outside of a special taxing district (CID, TDD).

Byrnes Mill makes its case for the tax hikes here. The property tax is intended for police, and requires 2/3 approval to pass (this could be intended to make up for lost traffic ticket revenue thanks to SB5).

Jefferson County Library

The library is requesting a 8 cent increase in its 20 cents/$100 property tax. The library makes it case here. Districts like to forecast dire scenarios if tax proposals fail, and the library does that here, stating that one of its three locations could need to close in 5 years.

Windsor School District

This is one of those “no new tax” bond issues that keeps the tax levy the same, but extends it for additional years in the future, in this case 8 years for a $14.75 million bond issue. The district makes it case for the proposition here. The Leader reports that Windsor voters passed bond issues in 1998, 2001, 2006, and 2011.

Hillsboro School District

Another “no new tax” bond issue, this one for $12 million. Here is their campaign literature. Bond issues require a 4/7 majority for approval.

Festus School District

Festus is looking to convert 35 cents/$100 of debt service levy (which has an expiration date) to operating levy (which is permanent). Festus’ overall property tax rate, lowest among JeffCo school districts, would remain at $3.7407/$100 valuation. Plans for the tax proceeds are found here. Festus did something very similar just two years ago (page 3); it passed by a wide margin.

Rockwood and Meramec school districts, which cover small pieces of JeffCo, also have “no new tax” bond measures on the ballot for $95 million and $11.75 million, respectively. Rockwood voters passed a $68 million no tax bond issue just two years ago.

Festus Fireworks

Increase the business license fee on sellers of fireworks and firecrackers from one hundred and forty dollars ($140.00) plus three percent (3%) of the gross receipts to one thousand, five hundred dollars ($1,500)?

$1,500 minus $140 equals $1,360. By my calculations, $1,360 is 3% of $45,333. So if a fireworks stand in Festus brings in less than that amount, this is an increase in cost. It could just be a simplification rather than a revenue raiser.

Rock Fire

I talked about this a bit here. Rock Fire wants to increase its property tax by 50 cents/$100 valuation. Rock Fire’s current levy is 76.32 cents per $100, so this is a large increase. Rock Fire has the 10th lowest tax levy of 14 JeffCo fire districts (though Rock also has a sales tax); if this measure passes Rock would be 3rd highest. Rock Fire is pushing this really hard through mailers and door-to-door visits by firefighters. Here is their Facebook page, and here is the letter the chief sent out. A Facebook page called Whole Truth is examining with a critical eye Rock Fire’s claims that it needs more revenue.

Saline Valley Fire

Saline is asking for a 25 cents per $100 valuation increase in its property tax. Saline already has by far the highest property tax among fire districts in the county, at $1.575 per $100. The next highest is Cedar Hill Fire at $1.3826, and the majority of JeffCo fire districts levy less than $1. Saline does not have a sales tax, however.(Note: Saline Valley is the product of the merger of two fire districts. In 2008, by a simple majority, voters approved this merger. I think we need to see some more mergers). I was unable to find any campaign materials for this tax online.

I have not mentioned all of the local Proposition V listings on the ballot. These props, which every entity in the county is trying to pass, allows them to keep collecting sales taxes on private and out-of-state vehicle purchases. All Prop V votes to date in the county have passed.

Low Turnout, High Taxes

By my count, there are 13 tax proposals on county ballots this year, not counting Prop V. In 2015 there were 15 tax props, 12 of which were successful. In 2016 four of six were successful. Republicans have taken over most county elected offices, but in the nonpartisan local districts, tax hikes are still being requested quite frequently.

Turnout for the last two April elections was about 15%. In addition to these tax measures, city council, school board, and fire/ambulance board seats get filled in April. The candidates that get elected are the ones that put these taxes on the ballot. With the low turnout, it is city employees, teachers, firemen, and paramedics who make the difference in these races with their endorsements and their votes. Then you end up in a situation where the pocketbooks of residents are a secondary priority. With all these tax votes, as well as school board elections in two districts (Fox and Grandview) where employees have been investigated by the FBI for wrongdoing, it behooves JeffCo residents to go vote on April 4.

Rock Fire Tax and Arnold Giveaways

13 Mar

The Rock Community Fire Protection District is proposing a property tax hike of 50 cents per $100 in valuation, a big increase over its current 77.6 cent rate (on top of sales and personal property taxes). I plan to get into the larger issue in another post, but at this time I want to talk about one cited reason this tax is being proposed.

Here is a letter that Rock Fire sent out to residents of the district. I didn’t think government entities could campaign for their own tax hike, but here it is, paid for by the district.

Paragraph four talks about a rollback of their property tax over time, then says “this, combined with the redirection of public tax dollars to various TIF projects, has forced us to take serious measures in order to meet budgetary shortfalls.”

What do they refer to? Well, for one, in October 2015, Arnold made a deal with Anheuser-Busch for the expansion of the can production plant in Arnold. As part of the one-sided deal, Arnold agreed to a 100% tax abatement for 20 years, meaning that the can plant won’t have to pay any property or personal property taxes on the new buildings and equipment that come with the project.

Now, this doesn’t really affect Arnold, since the city makes most of its money through sales taxes. But this really puts the screws to other government entities that are also affected by this project and do rely on property taxes, like Rock Fire, which stands to lose over $2 million over the life of the abatement, while incurring additional responsibilities to provide fire coverage for the can plant. The deal also includes no payments in lieu of taxes (pilot), something that Rock Fire attorney Frank Vatterott called “highly unusual.” The city has the power to make these deals without consulting any of the other affected districts, and in this case, without informing them until a month before the deal was ratified.

Fox school district CFO John Brazeal had some harsh words for the city of Arnold (note that, when Fox asks for a tax hike in a couple of years – they are laying the groundwork now – they will undoubtedly cite this same project as justification):

“It is hard to imagine a more stupid or more dangerous way of making decisions than by putting those decisions in the hands of people who pay no price for being wrong.” (Thomas Sowell)

Compare the Arnold, MO deal to the Jacksonville, FL deal, both projects currently in progress.

Arnold: $150M project ($20M building + $130M equipment) with a 100% tax abatement of $19.96M over a 20-year term, including $12.72M of school taxes. This on the heels of Arnold’s 2012 project of $88M having a 100% tax abatement of $14.53M over a 20-year term, including $9.59M of school taxes.

Jacksonville: $170M project ($40M building + $130M equipment) with a 75% tax abatement of city taxes totalling $12.0M over a 12-year term. All other property taxes, including 100% of school taxes) to be paid by Metal Container.

Team Jacksonville = smart. Team Arnold = @#$%!

Incredibly, Team Arnold’s starting offer was 100% abatement. This deal was announced in December 2014 following a council approval that took place somewhere other than an open meeting.

It takes no special skill and no special strategy to end up empty handed. Nothing for the emergency services. Nothing for the school students. Not even cheaper beer prices.

It is true that Florida law contains some restrictions on the ability to give away the farm like Arnold did, but still.

On top of the current deal is the 2012 can plant deal that Brazeal mentions above. I’m not sure what that deal cost Rock Fire, but estimating from the amount it costs Fox, it is probably about $1.5 million.

Mayor’s race note: Arnold councilman and candidate for mayor Phil Amato was the only councilman to vote against the can plant deal.

Kroenke TIF Also Hurts Fire District

Another corporate giveaway that is draining Rock Fire’s coffers is the tax increment financing (TIF) that was passed for Arnold Commons in 2005. The project was undertaken by a company called THF Realty, which is run by none other than this guy:

e_stanely_kroenke

Stan Kroenke

The project also included eminent domain land seizures.

Rock Fire paid over $600,000 of its tax receipts towards the TIF debt from 2008-2012, according to a 2014 Leader article, but then stopped because Rock Ambulance was not paying in. They say they don’t have to since they did not sign off on the agreement. Rock Fire thought this was not fair, and stopped paying until the city filed suit against Rock Ambulance. This lawsuit, filed in 2014, is still being adjudicated. When the suit was filed, Rock Fire paid another $400,000 towards the TIF debt, and continues to keep paying. Under the TIF terms, Rock Fire and Rock Ambulance are supposed to pay half of the sales tax money they get from the development back to the TIF.

So here we see another of the negative side effects that these poorly-negotiated, poorly thought out corporate giveaways have on us.

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