How Much Will The New Library Cost a Typical Family?

The library board is proposing to pay for the new library with a 1/4% sales tax. This proposal is planned to be on the June, 2014 general election ballot for all qualified Stutsman County residents to vote on.

We had a conversation with the State Tax Office and this is their response to the question; “How much will the typical household in Stutsman pay each year if the new library is paid for by a 1/4% sales tax?”

“To recap some of what we discussed, the level of 2012 taxable sales and purchases in Stutsman County indicates a one-quarter percent county sales tax would generate around $688,000 annually, an amount that most likely would grow as the community expands.

As to what this quarter-cent would mean to the typical family, a taxbase study commissioned by Congress and conducted each year by the Washington DC Finance Office suggests a “typical” North Dakota family earning approximately $50,000 pays $810 in state and local sales tax.  Using the typical rate of 6% (5% state and 1% city), the equivalent at a one-quarter percent basis would mean this new county tax would “cost” the typical family around $33.75 per year.  In today’s world that amount is less than a tank of gas, or about equal to a meal for three……”

Thanks to the North Dakota State Tax Department for the information.

 

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