Calculating Your Estimated Cost
Step 1: Determine Your Utility Consumption Tax Amount
As we described in the Q&A, about approximately 60% of the project should be funded by a 10% utility consumption tax. Each of us, including the commercial properties, will pay according to the amount we use the utility services in town.
We need to determine your average monthly utility costs. Total up one month’s electric, water and gas bills. Multiply that number by 12 to get your annual cost. Now multiply that number by 10%. This is how much you would likely pay in utility consumption tax each year for 15 years.
For example, your monthly utility bills total $125. $125 x 12 = $1,500 x 10% = $150
Step 2: Determine Your Property Tax Contribution
You will need to know your property’s TAXABLE value. Remember, your Taxable Value can be very different from the price that you could get selling your property so be sure to use the correct number. You can look at your last property tax bill or go to the Property Appraiser’s website: www.pbcgov.com/papa and find your information. See the image below for location of your taxable value.
Multiply that number by .000355. That is your estimated annual property tax contribution.
For example, your property’s taxable value is $250,000. $250,000 x .000355 = $88.75
Step 3: Add Those Two Numbers Together
In our example, $150 + $88.75 = $238.75 each year for 15 years.
(For those of you curious about your “Best Case” cost, multiply your Taxable Value by .000183. Add that number to your Utility Tax Cost and that’s your Best Case estimate. In our example, that would be $150 + $45.75 = $195.75 per year.)