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Mayor Lee voted against this.

Dodge City property taxes boosted by 5 percent

By Tim Vandenack

The Hutchinson News

tvandenackAThutchnews.com

DODGE CITY - Tax abatements don't come without cost.

The partial break granted National Beef last year is boosting property tax bills for homeowners here by more than 5 percent, according to an analysis of the main taxing entities' levies. That's on top of across-the-board tax hikes by the entities themselves to keep up with rising expenditures.

As is, the owner of a $102,360 house - which would have been worth $100,000 on average last year - will pay $1,977.55 in property taxes to Ford County, Dodge City, Dodge City Community College and Dodge City USD 443. Those four units account for the vast majority of property taxes paid by homeowners here.

If National Beef's abatement hadn't been granted, however, adding $9.36 million from the meatpacker to the tax rolls, that same homeowner would have paid $1,872.16, according to the analysis.

All told, National Beef will lop 25 percent off its property tax bill thanks to the abatement, paying about $1.21 million for 2006 to the four taxing units, down from the $1.61 million it would have paid otherwise.

Other Ford County property taxpayers will compensate for the lost $400,000, with the increase for the owner of that $102,360 home totaling 5.63 percent. The percentage increase rises slightly for cheaper homes and decreases slightly for more expensive residences.

National Beef asked city officials late last year for the 25 percent abatement, allowable under state law to promote economic development, to help it offset the cost of an expansion project. The expansion - aimed at increasing the plant's processing capacity - has created new jobs in Dodge City, adding millions of dollars to the company's payroll.

At the time, the topic generated heated discussion, with proponents noting the 2,000-plus National Beef jobs here and the firm's strong contribution to the local economy. Critics, meanwhile, noted the need among the impacted taxing units for all possible revenue inflows.

In the end, the city commission voted 4-1 to allow the break, with Terry Lee, then a commissioner and now Dodge City's mayor, dissenting. Over the 10-year span of the abatement, National Beef will pay an estimated $17.61 million in property taxes, down from the $23.48 million it would have paid otherwise.

Even without the tax break, Ford County homeowners are in line to pay more in property taxes. The owner of a $100,000 home last year - now valued at $102,360, on average, adjusting for Ford County's higher residential valuation - paid $1,783.52 to the county, city, school district and community college.

Last year, Ford County's share of the total amounted to $432.79 and now it has increased to $463. The city took a $455 bite from the owner of a $100,000 home last year and that sum will rise to $527.04. The community college got $318.91 and will now get $358.34 while USD 443 received $576.82 last year and now will get $629.17.

Tax bills were sent out late last month.

Copyright 2005 The Hutchinson News