Dorchester County Issues Bonds for Parks and Libraries with No 2020 Increase in Property Tax
Based on early estimates, Dorchester County anticipated a 4.8 mill property tax increase in the Debt Service Fund upon the issuance of general obligation bonds for parks and libraries as approved in the 2019 referendum. That would have resulted in the following 4.8 mills tax increase for each $100,000 in appraised value of a home:
- Primary Residence - 4%: $19.20
- Rental Property - 6%: $28.80
Due to a number of factors, to include receiving a 2.20% interest rate on the bonds, receiving a premium on the sale of the bonds in the amount of $1,435,047, and strong growth in property tax revenues, NO millage increase will be required for the bonds in FY 2021.
A tax increase will be required in the future, but due to strong growth, it will be incremental and not the immediate application of the anticipated 4.8 mills.
In fact, taxpayers may have noticed that the millage for debt was decreased from 6.2 mills to 5.9 mills in FY 2020.
Dorchester County Council Chairman, George Bailey said “County Council is pleased that our strong credit ratings and growth in property tax revenue led to a situation where we did not have to immediately increase millage for debt service. This will undoubtedly save taxpayers on their bills in January 2021." Bailey added "I am appreciative of the remarkable job staff does to ensure our county continues to meet the needs of our citizens in a fiscally responsible manner."
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