County staff: property tax growth offset by circuit-breaker and new state credits; overall revenue up only slightly

Scott, speaking for county financial staff during the budget hearings, told the council the county’s three core revenue streams—property tax, shared local income taxes and miscellaneous state taxes—account for roughly 75% of local revenue and appear likely to increase only modestly for 2026. "These 3 things make up 75% of our revenues," Scott said, summarizing the county’s revenue mix. Scott said the county’s net assessed value (AV) rose about 3.9% year over year, but he emphasized two offsetting policy changes at the state level: a projected increase in circuit-breaker credits and expansion of homestead and business personal property exemptions. Scott said DLGF circuit-breaker projections show a sharp rise in credits next year tied to new tax credits that will take effect for homestead and commercial property owners. He explained that while the certified maximum levy would allow roughly $10.35 million in property-tax levy before circuit-breaker losses, the county is likely to see much smaller net gains after credits and circuit-breaker adjustments. Using the figures presented, Scott estimated net property-tax collections would be only about 0.5% higher next year from the county’s largest revenue sources. He urged the council to consider levy options and noted the legislature has capped the annual “max levy” increase at 4% in recent years. Scott also warned that other state-level changes—such as planned increases in the business personal property exemption to $2,000,000 by 2027—could depress personal-property tax collections and reduce the county’s long-term AV unless new development offsets those losses. Council members asked clarifying questions about how the circuit breaker is calculated and how decisions on the county’s levy (for example, adopting the full maximum levy versus staying below it) would affect the certified tax rate and fund balances. Scott said he would update projections as final DLGF numbers and grant estimates arrive.