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New Houses: Cost Burden on State Budget		Excel file			Webmaster
This page shows that construction of new houses, on average, does not contribute to the state's budget. Construction of new houses costs the state money. Most of the state is poorer than the growing counties, but the state sends money to teach students in new schools here. Much more money comes here to operate schools than the new houses send back in tax money. The loss per house is shown in red near the bottom of the table.
SCHOOL OPERATING COSTS	Source	School Data	Per Student per Year	Per New House per Year
Number of Students, Oct.2005	E	7,894			Click under-lined items for links
Operating Revenue (General & Special Budgets)
Total Revenue 2005-06	BoE	$65,612,866	$8,312
. County	BoE	$28,105,971	$3,560
. . Local Property taxes for operations (not bonds)	BoE	$25,740,135	$3,261
. . . Basic tax for current year	WVDE	$10,681,189			0.4096%	rate shown for class 2
. . . Excess Levy for current year		$11,969,398			0.4590%	rate shown for class 2
. . . Back taxes collected for earlier years		$3,089,548
. . Other sources in county (parents' payments for meals, etc.)		$5,455,384	$691
. Federal (food, special ed, etc.)	BoE	$4,795,050	$607
. State	BoE	$32,711,845	$4,144
. . Formula topup	WVDE	$23,345,129	$2,957
. . Other state payments for operations (retirement, special ed, etc.)		$9,366,716	$1,187
Target for formula (basic tax+topup)		$34,026,317	$4,310
Total state allowance (target+other, offset by parent taxes below)		$43,393,034	$5,497
Average students per new house	I	0.644
State target per new house, if children treated same as existing children				$3,540	Allowance per student X students per new house
STATE TAXES
Income tax on state-taxable income of
$70,000				$3,425	$2775+6.5% of excess over $60k
Sales tax on taxable purchases of
$6,000	6%	nonfood		$360	Purchase X tax
$6,000	4%	food		$240	Purchase X tax
Retail profit on above sales	10%	need industry average
State business tax on retail profit	30%	need state tax rates		$360	Purchases X profit X tax
Retail property value to support above sales is on next line	200%	need industry average
$24,000					Purchases X previous line
State property tax:
. On business above	0.010%			$1	Business value on line above X 60% X tax
. On house (class 2) worth
$300,000	0.005%			$9	Property value X 60% X tax
. On cars (class 3+4) worth
$20,000	0.010%			$1	Property value X 60% X tax
Total of above state taxes generated by an average new home				$4,397	Total of state taxes above
Taxes above go to state general revenue & support administration, courts, health, etc. Percent available for K-12 schools is:	WV			47.5%
Schools' share of state taxes				$2,088	Total above X percent
LOCAL TAXES are below. They go directly to schools to reduce state formula payment.
Current basic school property taxes:
. On new business generated (value above, class 3+4)	0.8192%			$118	Business value X 60% X tax
. On new house (value above, class 2)	0.4096%			$737	House value X 60% X tax
. On cars at the new house (values above, class 3+4)	0.8192%			$98	Car value X 60% X tax
TOTAL TAXES to offset state aid for schools				$3,042	Grand total state+local taxes for schools
State's net cost to operate schools for each new home, cost per year:
. New home with average number of children	$498				State target per home minus grand total
. New home with two children	$7,952				Two state targets (students) minus grand total
This excludes construction of schools, roads, water & sewer plants, etc., which state also pays a lot for.

Last Updated on 12/3/2007
Email: cost@saveourcounty.org