The city of Kokomo will be taking a bigger bite of each tax dollar collected starting in 2013 as a result of the first round of annexation.
Kokomo’s share of every tax dollar collected will increase from 48.6 to 52 percent starting next year, which means the amount for the operation of Howard County government, local schools, library and townships will decrease.
The county’s share will drop from 15.5 to 14.6 percent and the schools will see a decrease from 30 to 28 percent.
The city’s projected revenue will go from $47.1 million to $53.6 million, Howard County Assessor Jamie Shepherd said.
...
Shepherd said a growing concern for other taxing units is that more properties in the annexed area will be hitting the state mandated property tax caps.
She estimated Howard County will lose an additional $900,000 in property taxes next year as a result of the tax caps.
Shepherd noted Kokomo will lose an additional $2.6 million in revenues as a result of the tax caps, but that loss is covered by the increased revenues the city will receive.
The net gain in revenues for Kokomo is approximately $3.9 million.
The tax caps will cost the Kokomo-Center schools about an additional $900,000 and Western schools approximately $400,000.
Shepherd said the losses to the other taxing units through the County Option Income and Local Option Income taxes is a dollar for dollar shift to Kokomo.
Those shift in tax dollars include the county, Greentown and Russiaville. She estimated the loss to Howard County in 2014 at $420,000.
...
