TAX MATH #1

"We have one lf the the highest tax rates."

Maybe, but you don't PAY the highest taxes. What the RATE is and what you PAY are two different things. Where property values are high, cities can have lower rates to get the same revenue. Where property values are low, like in South Euclid, we need a little higher rate in order to get the same dollars.

The cost of doing business (fixing and plowing roads, keeping parks open, paying for police, fire, and their vehicles, and gas, and people,) is the same whether you're in Beachwood or South Euclid.

 

TAX MATH #2

I pay taxes for that!

I can't tell you how many times a week I'm told "I pay taxes for someone to do that," whether it's after I've suggested that a resident pick up the litter in front of their home or business, or when I've suggested that someone start a block watch to reduce crime on their street, or  any number of things that a person can do to pitch in.

If I have the time I'll walk the resident through the math to show them how little they really pay for all the services the city provides. Usually I don't.

So I'll take this space to run through a few scenarios that may help you feel better about the taxes you pay to the city.

We'll use a $100,000 market value for the house's property tax in all cases, just to keep things consistent. Most of the homes in Ward 4 have values closer to $80,000, but I'm giving you the worst-case scenario (or best case, as home prices are rising.)

A. - Property Tax:

The big thing to remember here is that the city only gets 15% of the property taxes you pay. The schools get 63%, the county gets 17%, and the library and Metroparks split the other 5%.

(1) If you're under 65 years of age, your total tax bill is around $3,600 per year. The city gets 15%, or $540.

(2) If you're over 65, or disabled, with adjusted gross income (what you pay income taxes on) under $30,000, and get the homestead exemption, you're only getting taxed as if your house is worth $75,000, so your tax bill is closer to $2,800 per year. The city gets 15%, or $420.

B. - Income Tax

Income taxes in our city are only based on earned income, meaning if you don't earn wages you don't pay.

(1) If you live on a pension or investments or social security, an don't get a paycheck from a job, you don't pay the city income tax. Zip. Zero.

(2) If you earn wages in South Euclid, you pay 2% to RITA. So...

(a) If you make $50,000 in earned income, we get $1,000.

(b) If you make $80,000 in earned income, we get $1,600.

(3) If you earn wages in another city you no longer get a reduction on your South Euclid income tax (sorry, we need all the dough we can get to continue to provide the services you expect.)

(a) So if you make that $50,000 in Cleveland, we get $1,000.

(b) If you make $80,000 in Cleveland, we get $1,600.

 

To see how much you pay us in taxes, put it all together, and...

• If you are retired and have no wage income, and your house is worth $100,000, you pay the city about $540 a year. If you have the homestead exemption you pay less than $500. That's $1.37 a day.

• If you earn $50,000, and your house here is worth $100,000, your income tax ($1,000) + property tax ($540) means you pay the city about $1,540 a year, or $4.21 a day.

For that amount, you get streets plowed and repaired, police and fire services, trash picked up and recycled, and hundreds of other services we tend to take for granted. FYI, one Emergency Services call costs us well over $400.

For comparison, you probably pay more for your cable bill, or your daily coffee fix.