By Mary Drier
Staff Writer
THUMB AREA — Because of the state’s recent change to the way wind turbines are taxed, the financial windfall they were projected to generate will be much less than expected, which in turn means less tax revenue than anticipated.
Between that change, decreased revenue sharing, low residential land values, low interest earnings, and increased costs several municipalities, like Tuscola County, are watching their pennies.
Tuscola County Controller Mike Hoagland outlined a graphic presentation of the county’s finances compared to others.
“We’ve done well for a long time by being frugal but we are getting to a point were we can’t and keep up to mandated (state required) services,” said Hoagland. “It’s getting to the point were we aren’t able to sustain doing that. We would be devastated without wind (revenue), and that’s going to level off fast.
“Wind buys us about two years of relief before it flattens out again, and equalized value (on residential property) doesn’t seem to have bottomed out yet”
According to the chart: Tuscola County’s State Equalized Value (SEV) is $1,392,511,690. Its operating millage 3.9141, and its property tax revenue is $5,450,430. The county’s population is 54,662, which equals out to a property tax revenue per capita ratio of $100.
“Of the state’s 83 counties, we are dead last,” stated Hoagland.
“While Tuscola County’s operating millage isn’t the lowest in the state, there are several other factors that have to be taken into consideration.”
Leelanau County’s operating millage of 3.5389 mills is the lowest in the state. However, the county’s SEV is $2,375,170,816 and its taxable revenue is $8,409,031. Because the county has a healthy SEV with a population of only 21,607, that makes its revenue per capita $389.
“Those numbers make all the difference,” said Hoagland.
Huron County’s SEV is $1,651,033,446. Its operating millage is 4.3805, and it property tax revenue is $7,232,352
Its population is 32,463, which equals out to a property tax revenue per capita ratio of $223. It ranks 23rd out of 83 counties.
Sanilac County’s SEV is $1,472,804,809. Its operating millage is 4.0482, and its property tax revenue is $5,962,208.
Its population is 42,268, which equals out to a property tax revenue per capita ratio of $141. It ranks 65h out of 83 counties.
While Tuscola only levies 3.9141 mills for operations, voters approved a total of 4.5780 special purpose millages. The revenue from those levies and the population equates to $117 per capita.
“When it comes to special purpose millages, Tuscola ranks 22nd in the state,” said Hoagland.
Huron County voters approved levying 2.0299 for special purpose millages. The revenue from those special millages and population, equates to $103 per capita. Huron ranks 26nd in the state.
Sanilac county voters approved 3.625 special purpose millages. The revenue from those millages and population equates to $126 per capita. Sanilac ranks 17th in the state.
When both county operating and special millages are combine in Lake County, it ranks number one with 12.8050 mills. It has an SEV of $560,867,744 with a property tax revenue of $7,181,911 with a per capita revenue of $625.
“When everything is compared, it gives a true picture of the difference in finances,” said Hoagland.
When both county operating and special millages are combine Tuscola ranks 57th with 8.4921 mills for a per capita revenue of $216.
When both county operating and special millages are combine, Huron ranks 24th with 6.4104 mills for a per capita revenue of $326.
When both operating and special millages re combine, Sanilac ranks 41st with 7.6732 mills with a per capital revenue of $267.
Mary Drier is a staff writer for the Tuscola County Advertiser. She can be reached at drier@tcadvertiser.com.