On Tuesday, the Polk County Board of Commissioners met at the Polk County Government Center and held a public hearing regarding the local option sales tax adjustments heading into 2024.
LOCAL OPTION SALES TAX APPROVED
Polk County Engineer Richard Sanders gave a final presentation to the board, reviewing the local option sales tax after the public hearing commenced, where no individuals were present during the public hearing portion. The board ultimately approved the local option sales tax increase from 0.25% to 0.50%.
“Today, the Polk County Board passed the resolution at a public hearing increasing the local option sales tax in which Polk County currently brings in revenue from 0.25% to 0.50%,” said Sanders, “Legislature (back in 2008) gave the counties the ability to do that.”
By statute, the revenue gained from local option sales tax has to be spent on county road projects. Sanders presented the board with projects that will take place over the Highway Department’s five-year plan and other projects within the CSAH system. Estimated construction costs over the next five years (within the county road system) are in the amount of $5.2 million. The highway department estimates project costs not within the county road system will be approximately $23 million.
The Highway Department has allocated these funds toward 2024 projects such as the Climax bridge improvements and Box culvert installation on CSAH 9, CSAH 15, and CSAH 21 (located west of 220).
Sanders is estimating that the county will receive $1.9 million per year during the five-year plan, equating to approximately $9.9 million. “The local option sales tax is any business that does work in Polk County they have to add that extra tax when they are selling taxable items,” said Sanders, “This does not pertain to clothing or food, but if you go buy something downtown that is taxable now instead of paying 0.25% you will pay 0.50% to Polk County.” The county will also receive gas tax, tab fees, and motor vehicle sales tax revenue.
POLK COUNTY REVIEWS COUNTY LEVY-SET AT 2.5% INCREASE
Polk County Administrator Chuck Whiting reviewed the updated 2024 county levy, which has since dropped from a 2.6% increase to a 2.5% increase. “I would say next year’s budget is fairly routine,” said Whiting, “It’s probably the most normal budget I’ve dealt with two or three years. Nothing stands out; there are no (huge) initiatives for next year.”
The total levy increase of 2.5% equates to $672,443 in the budget. The county is expected to see expenditures total just shy of 75 million dollars in 2024, and the net levy is set at $27.5 million.
Whiting’s presentation also showed the revenue breakdown for the county heading into 2024, which included 37% of revenue coming via property taxes in the amount of $27.5 million and the road and bridges projects to be responsible for 24% of the payment in the amount of $17.6 million.
The truth and taxation public hearing will occur on Tuesday, December 12, at 6:00 p.m. at the Polk County Government Center. Those who are questioning assessed valuations are encouraged to attend the public hearing. “We’ve had a lot of questions and calls coming to the government center regarding people assessed evaluations,” said Whiting, “We respond to those at the budget hearing. We understand when people see their values increase and tend to have questions about it, so we’ll be here to answer any questions. It’s a public meeting, and everybody can attend.”
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