WEST LAFAYETTE, Ind. (WLFI) – More than 300 people will be paying new taxes since the West Lafayette annexation became official last week.
“The average homeowner will see about a dollar a day increase in property taxes in 2014 and 2015,” West Lafayette development director Chandler Poole said.
He said residents won’t pay West Lafayette city taxes until 2015. Poole said the city has a year to get departments ready to serve the annexed area.
Tippecanoe County auditor Jennifer Weston said in 2013 the Wabash Township tax rate was about 1.6 percent for every $100 of assessed value.
West Lafayette’s was just under .9 percent. Using those rates, annexed residents would have a tax rate of about 2.4 percent.
“The net impact to the county will be roughly what it is now,” Weston said. “You’re not talking about loosing any assessed value county-wide. It’s just the city is gaining and the township is loosing.”
How much the township could lose is what Weston’s office is trying to figure out. She said she has until August to turn in the county’s assessed value to the state. In 2012, the assessed value was about $22 million.
As for West Lafayette, the added taxes will bring in about $965,000 in revenue. Improvements will be made to fire and police equipment and new employees will be hired.
“We’re going to be looking at additional hires in the street department, the guys who will be driving the trash trucks, driving the plows, they will be servicing those areas,” Poole said.
The city is also set to gain about $521,000 from the state because nearly 20 miles of roads were annexed.
“We will also be using that money for trucks, salt, personnel to keep them up and running to keep those roads in good shape and passable for the citizens,” Poole said.
As for the newly annexed Purdue University, since it is a state entity it will not pay city taxes.