On March 22, County Commissioners approved the 2022 county budget with no increase in the tax rate. However, Cape Issues believes that this is misleading because the tax levy collected by the county will increase by 10.7%, or $14.4 million, from $135.1 million, in 2021, to $149.5, in 2022.
This is because the county computes its tax on the equalized assessed value (approximate market value) of county real estate and the value of county real estate has increased by 10.8%. In other words, you will be facing a tax rate percentage increase approximately equal to the increase in the value of your property.
It could be argued that expenditures had to be “plugged” in order to meet the amount of revenues. If so, the expenditure “Deferred Charges to Future Taxation-Unfunded” is the “plug” that will allow $11.75 million to be sent to the county’s cash coffers in 2022 as compared to $8.5 million in 2021.
The general cash balance increased from $50.6 million, as of Dec. 21, 2020, to $67.4 million, in 2022. A similar increase is certain if the proposed 2022 budget comes to fruition.
