Edgar TID correction tax is nearly $100,000
Village of Edgar’s share will be $22,189, says state
The Village of Edgar and other taxing jurisdictions will be required to increase taxes by nearly $100,000 dollars in the 2020 tax year to make up for 11 years of mistakenly failing to list a $1.23 million property in Tax Increment District (TID) No. 3.
The error involving B & D Fabricators, a tenant in the village’s business park, could mean an increase of 5.46 percent in village property taxes, but village administrator Jennifer Lopez said on Friday she will recommend village board members cut next year’s budget to minimize any impact to local residents.
“My advice will be to negate this so it doesn’t impact taxpayers,” she said.
Lopez said the state Department of Revenue has ordered all jurisdictions involved the village’s TID No. 3 to increase taxes in order to partially correct a mistake where property taxes paid by B & D Fabricators were not directed to the village’s TID No. 3 fund, but, instead were paid out to the normal taxing entities, including the village, K-12 school, technical college and the county.
Next year, according to a calculation worksheet developed by financial consultant Sean Lentz, the village will need to increase property taxes by $22,189. Other taxing jurisdictions will also need to raise taxes: Marathon County, $20,777; Edgar School District, $47,543; and Northcentral Technical College, $5,583. The total tax increase calculates to $96,092.
Lopez said the correction tax could have its potentially biggest impact in the village. If trustees don’t cut next year’s budget to offset the tax increase, the village tax rate might need to increase by 30 cents to $5.74 per thousand dollars of property value. This translates to an extra $45 in property taxes on a $150,000 home.
The administrator said she will likely recommend throttling back spending on village equipment or other capital items in order to keep taxes stable for village residents.
“We can offset this so that it’s not an impact to Edgar taxpayers,” she said.
Lopez said construction of new homes in the village in 2019 will add to the village’s tax base and minimize the impact of the TID corrections tax.
