With the mayor's proposed budget scheduled for a town council hearing tonight, one question that is sure to be on the minds of Johnston homeowners is: What will the increase do to my taxes?
The answer to this question is pretty straightforward — take the town's assessment of your property and multiply it by the anticipated increase of 94 cents per $1,000.
So, for example, if your house is assessed at $200,000, take 200 and multiply by 0.94 to get $188. That's the expected increase for your taxes in the next fiscal year, which runs from July 1, 2011 through June 30, 2012.
Based on the mayor's proposed budget, the town's residential property tax rate would go up to $24.75 per $1,000 in fiscal 2012.
(Johnston also provides a homestead exemption of 20 percent of a home's assessed value. It is not included in this estimation.)
That's also the way to figure out the potential hike if the town council makes changes to the budget — for example, if the council adds money back to the school department.
(The mayor recommended a $48 million budget; the school committee has requested $48.8 million.)
What would happen to the tax rate if the $800,000 were added back?
Based on the equation of $1 on the tax rate equalling about $1.6 million in money collected, $800,000 would add another 50 cents to the expected rate for fiscal 2012.
Using the earlier calculation, the owner of a home assessed at $200,000 would pay another $100 in taxes, for a total increase of $288 — or about $72 every quarter — to fund the school department's request.
The town council is scheduled to meet and review the budget at 7 p.m. at the Municipal Court.