Tax penny worth $152K | Local News

A tax penny in Cumberland County provides $152,930 in property tax revenue for the county — an increase of about 1.92% from last year.

“That would net out about $452,000 additional dollars for fiscal year 2020-’21,” said Nathan Brock, county finance director, during a meeting with the county’s budget committee Tuesday afternoon.

That increased revenue assumes the county commission keeps the tax rate at its current $1.5653 per $100 of assessed value.

Property tax collections are just shy of 100% of the budgeted amount for the fiscal year, Brock said. However, he anticipates the county will collect the budgeted amount of $23.4 million before the fiscal year ends June 30. 

Taxes were due Feb. 29. The COVID-19 health crisis delayed mailing of late tax notices until earlier this month. 

The Cumberland County Property Assessor reported $1.6 billion in assessed property in Cumberland County. A penny in property tax generates $160,979 in gross revenue, but the the county budgets for a 5% delinquency rate, for a net tax collection of $152,930 per penny.

“We reduced the delinquency rate last year from 6% to 5%,” Brock reminded the committee. 

If the distribution of property tax among county funds remained the same in the coming year, the general fund would see growth of $185,150; $40,634 for the solid waste fund; $70,034 for the debt service fund; and $156,241 for the school fund.

“We adjust the property tax dollars based on the amount of sales tax dollars coming in,” Brock explained regarding the portion allotted to the school system. “The budget committee and commission’s responsibility is to meet that funding requirement, but how you meet it is your decision. You can meet it with local option sales taxes and property taxes.”

Brock is waiting for more information on sales tax revenue before the committee discusses revenue projections for the coming year. June’s report will reflect retail activity from April, when many businesses were closed for COVID-19. The May report, reflecting March sales when the health crisis began, came in above budget projections, with year-to-date collections more than $60,000 over budget projections. 

Read MoreTax penny worth $152K | Local News

0 0 vote
Article Rating
Notify of
Inline Feedbacks
View all comments
Would love your thoughts, please comment.x