How Would Niwot Incorporation Change Your Taxes
This is the second message in a series of publications from the NCA in response to the proposal by Niwot Exploratory Incorporation Survey Committee (hereon NEISC) to incorporate Niwot. This information is being provided to fulfill our charter as a conduit of information so that Niwotians can be well informed and should not be interpreted as a statement either FOR or AGAINST incorporation.
The NCA board does not advocate or endorse any specific issue or candidate. We will survey our members and the general public to capture and report their views on incorporation after concluding this series of publications.
Proposed Taxes
The NEISC has proposed a property tax increase of 7.50 mils and a sales tax rate of 8.845%
The property tax increase is:
- 7.62% for residential and commercial properties
The sales tax increase is:
- 78% for large item purchases (car, appliance, online/delivered purchases, …)
- 48% for all purchases in Niwot
Property Tax Details
A full explanation of property taxes and how they are calculated can be found on the Boulder County Tax Assessors website. Annual property tax is calculated as follows:
- Residential: (Assessed value) x (7.15%) x (total mils / 1000) + (fees)
- Commercial: (Assessed value) x (29.0%) x (total mils / 1000) + (fees)
- Vacant parcel: (Assessed value) x (29.0%) x (total mils / 1000) + (fees)
Due to the Gallagher amendment the commercial tax rate multiplier of 29% makes this proposed mil levy increase a much larger burden on Niwot businesses than for residents. See table below.
In unincorporated Niwot the residential mils currently are:
| Boulder County | 23.473 |
| St. Vrain Valley School District | 57.559 |
| NCWD | 1.000 |
| Left Hand Water District | 0.156 |
| Mountain View Rescue District | 16.247 |
| Total: | 98.435 |
With the proposed 7.50 mil increase property tax would go up by 7.62%
Residential |
Commercial |
||||||
|
Assessed Value |
Current Tax |
Incorporated Tax |
Increase |
Current Tax |
Incorporated Tax |
Increase |
|
|
$100,000 |
$704 |
$757 |
$54 |
$2,855 |
$3,072 |
$218 |
|
|
$200,000 |
$1,408 |
$1,515 |
$107 |
$5,709 |
$6,144 |
$435 |
|
|
$300,000 |
$2,111 |
$2,272 |
$161 |
$8,564 |
$9,216 |
$653 |
|
|
$400,000 |
$2,815 |
$3,030 |
$215 |
$11,418 |
$12,288 |
$870 |
|
|
$500,000 |
$3,519 |
$3,787 |
$268 |
$14,273 |
$15,361 |
$1,088 |
|
|
$600,000 |
$4,223 |
$4,545 |
$322 |
$17,128 |
$18,433 |
$1,305 |
|
|
$700,000 |
$4,927 |
$5,302 |
$375 |
$19,982 |
$21,505 |
$1,523 |
|
|
$800,000 |
$5,630 |
$6,059 |
$429 |
$22,837 |
$24,577 |
$1,740 |
|
|
$900,000 |
$6,334 |
$6,817 |
$483 |
$25,692 |
$27,649 |
$1,958 |
|
| $1,000,000 |
$7,038 |
$7,574 |
$536 |
$28,546 |
$30,721 |
$2,175 |
|
* Approximated and does not include fees
Sales Tax Details
The current sales tax rate in unincorporated Boulder County is 4.985%
There is an additional 1.00% sales tax for purchases made within the Niwot Local Improvement District (LID) which includes the Niwot business district. Under the NEISC incorporation proposal the LID would go away and a tax rate of 8.845% would apply to all.
It is important to note that large purchases such as automobiles and large appliances, as well as online/delivered purchases get taxed at your local tax rate. Here are examples of how sales taxes will increase.
| Example | Amount | Tax Rate | Current Tax | New Rate | Incorporated Tax | Increase | |
|
Purchases made OUTSIDE of Niwot business district (+78%) |
|||||||
| New car | $50,000 | 4.985% | $2,492.50 | 8.845% | $4,422.50 | $1,930.00 | |
| Used car | $10,000 | 4.985% | $747.75 | 8.845% | $1,326.75 | $579.00 | |
| Refrigerator | $750 | 4.985% | $37.39 | 8.845% | $66.34 | $28.95 | |
|
Purchases made INSIDE of Niwot business district (+48%) |
|||||||
| Artwork | $1,000 | 5.985% | $59.85 | 8.845% | $88.45 | $28.60 | |
| Merchandise | $500 | 5.985% | $29.93 | 8.845% | $44.23 | $14.30 | |
| Antique | $100 | 5.985% | $5.99 | 8.845% | $8.85 | $2.86 | |
| Dinner | $40 | 5.985% | $2.39 | 8.845% | $3.54 | $1.14 | |
The NCA will be conducting a community survey that will be open to NCA members and the general public and will be reported in two ways: first by confirmed NCA members, and secondly from the public in general. We feel that the first version carries more weight because voters are verified and there is no multiple voting. Survey results will be openly reported and available to the public on our website.
Please feel free to forward this and upcoming messages to your neighbors and friends, and be sure to visit the NCA website for additional details on this very important topic: www.niwot.org