As the holiday season approaches, Wood County Industrial Commission Executive Director Chana Gail Willis is asking the public to be aware that shopping local directly impacts property tax.
"Increases in sales tax revenue from shopping local has a direct impact on diminishing a portion of Wood County property tax bills,” said Willis. "How so? someone would ask. When someone buys something in retail in Wood County, they generally pay 8.25% sales tax; that’s 1.5% city if the transaction occurs inside a city, plus 0.5 % County, and 6.25% State. Also, property owners pay property tax to different entities, from their school district, city, any special districts and the county. Total sales tax allocations (revenues) to the County for the year are an offset to the total County property tax, dollar for dollar. Then, a formula is computed to show the discount amount as a county reduction on the property tax bill received by the taxpayers."
For example, if the total year sales distributions to Wood County (at 0.5% of retails sales) is $1.4M, then the Wood County property tax rolls are reduced for the county’s portion (not city, schools or special district) by that same $1.4M. The trickle down affect may not be a large amount per property, but it is a direct relationship: Shopping local
generates retail sales tax that directly offsets County portion of final billing for property tax. It’s essential economic impact: if retail trade does well, it lessens the burden on the property owners, from commercial to residential.
"Retail business trade is good business sense for everyone in Wood County, and why property owners from businesses, to homeowners, should care about encouraging
others to Shopping local,” Wills concluded, “Generally, from an economic standpoint, a consistent 4% growth rate or better is a comfortable target figure to work with for retails sales, and we are certainly tracking ahead of those figures in most of our communities. The climate continues to remain positive for measured economic
growth continuing into the fall season and the coming holidays.”