WASHINGTON COUNTY APPROVED BUDGET
FY 2026
Local Taxes
Change
Category
2024 Budget
2025 Budget
2026 Budget
$
%
Income Tax
116,692,810
121,388,350
130,049,610
8,661,260
7.14%
Admissions and Amusement Tax
0
475,000
475,000
0
0.00%
Recordation Tax
8,452,000
7,606,800
7,606,800
0
0.00%
Trailer Tax
200,000
200,000
220,000
20,000
10.00%
Total
125,344,810
129,670,150
138,351,410 8,681,260 6.69%
Local Taxes are projected to increase by $8.7 million or 6.69% in FY2026. Income Tax is the second largest revenue source for the County, representing 42.82% of General Fund revenues. It is the most economically sensitive revenue in the County and reflects downturns in the local economy much faster than property tax. The income tax rate in Washington County increased from 2.8% to 3.2% in FY2020. For FY2022 the Commissioners voted to decrease the rate from 3.2% to 3.0%. The Commissioners voted to further reduce the tax rate to 2.95% for FY2023, where it remains. Revenue from income tax is derived from personal income from County residents such as salaries and social security payments as well as income from capital gains, interest, and some business income. This tax is collected by the State Comptroller of the Treasury and distributions are made to the counties throughout the year based upon collection deadlines. This is the most difficult revenue to project due to its volatility. The Income Tax budget was based on several factors including projected personal income trends, unemployment history, unemployment projections, job growth, state budgetary actions, and trend analysis. Admission and Amusement tax is imposed at a rate of 3% for bingo and 5% for other entertainment related activities. In FY24 legislation was proposed to eliminate the tax but it did not pass. The FY2026 budget is based on the current year’s revenues. Recordation Tax rate is set at $3.80 per $500 and is set on instruments conveying title, articles of transfers, and amounts securing debt. Recordation revenue is projected at $7.6 million and is based on current trends and projected economic outlooks, excluding one-time revenues.
Trailer Tax is calculated at 7.5% of gross monthly charges not to exceed $20.00 per month per unit.
Interest Earnings
Change
Category
2024 Budget
2025 Budget
2026 Budget
$
%
Interest Income - Investments
1,500,000
4,000,000
4,000,000
0
0.00%
Interest - Municipal Investments
400,000
750,000
750,000
0
0.00%
Interest, Penalties & Fees
0
7,000
7,500
500 7.14%
Total
1,900,000
4,757,000
4,757,500
500 0.01%
Budgeted interest earnings are based on the current year’s investment amount with interest rates expected to slowly decrease during FY2026. The County will continue to work with investment bankers to realize as
2026 Budget Document
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