Saline County residents can expect to see a slightly higher county tax rate on their upcoming tax bills, according to information shared at the recent County Commission meeting.
County Administrator Philip Smith-Hanes informed commissioners that the county tax rate will be approximately a quarter of a mill higher than anticipated when the budget was adopted.
The increase is attributed to pending property tax exemptions that were not accounted for in earlier valuations. Smith-Hanes explained that at the time of budget adoption in June, there were $2.89 million in pending exemptions. By November, that figure had grown to $5,395,000 for real estate, with an additional $2 million in pending exemptions on personal property.
A significant portion of the increase stems from the Salina Fieldhouse, which changed ownership structure at the beginning of the year. The facility, previously under an Industrial Revenue Bond (IRB), became a city entity. This change temporarily put the property back on the tax roll until a new exemption is filed, adding about $3.2 million to the June valuation that is now pending exemption.
On the personal property side, 13 pending aircraft exemptions account for $2 million in assessed value. Smith-Hanes noted that the Board of Tax Appeals is approximately two years behind in approving exemptions, contributing to the discrepancy.
The County Administrator emphasized that while these properties are currently on the tax roll, it's expected that their exemptions will be approved. The county's practice is to exclude pending exemptions from tax calculations when there's a reasonable likelihood of approval to avoid having to refund tax payments later.
Smith-Hanes assured commissioners that all necessary procedural steps were taken when the budget was adopted, including approval to exceed the revenue neutral rate. The higher tax rate is a result of valuation changes rather than a new budget decision.
