by Bradley Parsons
Staff Writer
An upcoming study by Kiplinger’s Personal Finance found Jacksonville had one of the lightest tax burdens of the nation’s major cities.
Kiplinger’s compared large cities in each state, according to how they would tax a family of four with an annual household income of $90,000. According to the study, the fictional family would find the third lightest tax burden in Jacksonville, behind Cheyenne, Wyo., and Houston. In Jacksonville that family would have paid $3,480 in taxes, about $1,200 more than Cheyenne, but more than $9,000 cheaper than last-place finisher Bridgeport, Conn.
The magazine’s senior associate editor said Jacksonville benefited from low property taxes and the lack of a state income tax.
“The lack of income tax was a key factor in ranking the total tax burdens on working families,” said Mary Beth Franklin.
Along with Jacksonville, cities from Alaska, Nevada, South Dakota, Texas, Washington and Wyoming, all without income taxes, ranked in the Top 10. New Hampshire and Tennessee, which tax only interest and dividends, also ranked in the Top 10.
Next to zero income tax, Jacksonville’s best tax advantages come from comparatively low property, sales and gasoline taxes. Franklin said the study favored cities like Jacksonville with low housing costs.
The study compared property taxes paid on each market’s median house price, so areas like Jacksonville, with a $124,900 house, had an inherent advantage over markets like No. 10 finisher Seattle, where the median house cost $321,800.
Last year, Jacksonville’s property grew in value, so the City culled more in property tax revenue despite Mayor John Peyton’s 3.4 percent cut in the tax rate.
Mayor’s office spokesperson Heather Murphy said the tax cut signified Peyton’s dedication to keeping the City’s tax burden low. She said the Kiplinger’s study showed the approach was working.
“Certainly, the results of the survey validates the mayor’s commitment that low tax burdens and a tax-friendly city is an environment where people want to live and businesses want to locate,” said Murphy.
Murphy said it was “still being worked out” whether Peyton would cut property taxes again in his 2004-05 budget. Peyton’s predecessor, John Delaney, set the precedent to trim property taxes, reducing the rate every year he was in office.
Franklin said cities and states are increasingly turning to alternate revenue streams in an attempt to balance books in tough economic times. Although she said taxpayers have shown a willingness to pay more taxes in response to a specific need — witness the Better Jacksonville Plan — Franklin said politicians are reluctant to advocate tax increases. Instead, user fees and other “creative levies” have become more popular, according to the article.
For instance, Franklin said some states have passed laws making it easier for state treasuries to grab “unclaimed assets” like dormant checking accounts. Franklin said this approach has netted $22 billion nationwide.
In Florida, many cities, including Jacksonville, are considering imposing fees to pay for administrative shifts in the state’s court system.