Sierra Madre Planning Commissioner on 1 Carter Project

"1 Carter greatly overstates City tax revenues from the project.

In fact, it’s about an order of magnitude off.

Assuming the $2.5 million price per house mentioned in the article is correct, the total assessed valuation of the project would be $72.5 million.

This is a $66 million increase over the existing $6.5 million valuation.

The property tax rate is 1%, so this yields an increase of property taxes of $660,000.

However, the City’s share of the property tax is approximately 17%, so the City would net only about $112,200 per year.

Adding over $100,000 per year to the City’s budget is certainly not a bad thing, but it’s no where near the million dollars claimed in the article."

john hutt

august 21, 2006

downtown dirt dot ugly

Property tax is 1.25% of the purchase price, not 1%, as you stated.

Therefore, 29 homes with an average value of $2.5MM equals $72,500,000.

If the city receives 18% of $906,250, this would be a (annual) total of $163,125.

calamity jane

response to 1 Carter

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