High quality of life, low taxes
Windsor’s high quality of life is one of its hallmarks, is what attracts new residents, keeps generations here raising families, and entices visitors to the Town. Windsor’s leaders essentially created a downtown “from scratch” in the late 1990s-2000s, and with the result we have enjoyed an award-winning community which still delivers high-quality developments and programs to meet evolving community needs. One example of a recent high-quality development is Bell Village Retail center which includes Oliver’s Market, and eateries and retail shops.
In a community survey conducted in May 2015, seven in ten residents responded that they felt optimistic about where Windsor was headed, with 72 percent responding that the Town was headed in the “right direction.” In this same survey nine of ten reported that they felt Windsor was an “excellent” or “good” place to live.
One aspect of the Town that is not frequently discussed is taxation, yet tax revenue is essential to supporting our high quality of life. The Town of Windsor offers a high quality of life with relatively low taxes. How? I will explain.
Common taxes paid by the average Windsor homeowner include personal income taxes to the State and Federal governments, property tax and sales tax. Visitors who stay overnight in lodging establishments pay Transient Occupancy Tax (TOT) to the Town. Among other uses, State income tax is used for State, County and school services. Among other uses, Federal income tax is used for national defense, health and social services, and interest on Federal debt. These tax sources are not earmarked for cities and there is no set designation of income tax that flows to the Town of Windsor.
Property tax is paid by property owners in Windsor. Approximately 15 percent of the total property taxes paid is allocated to the Town of Windsor, with the majority of property tax supporting education and County programs.
Sales tax is a tax paid by residents and visitors who shop. Cities and towns receive approximately 1 percent of every dollar spent in Town limits. In Windsor, add-ons to the base State sales tax rate include Countywide measures: SMART, Measure M for Transportation, and the Open Space District. A new one-eighth cent County Regional Library tax was passed by the voters in November 2016 that will be assessed in the near future. Nevertheless, Windsor has no Town of Windsor local add-on sales tax and thus maintains one of the lowest sales tax rates in Sonoma County.
Transient Occupancy Tax, or TOT as it is commonly referred to, is a tax paid by visitors, not residents, yet the benefits of this tax flow both to residents and visitors, as TOT is a general tax which the Town uses to support public services enjoyed by everyone such as Police services. TOT receipts in the Town of Windsor have tripled since 2007 and will continue to grow as the new Holiday Inn opens in 2017 and room and occupancy rates rise with increased interest in wine country vacations.
Other common taxes not levied in Windsor include Utility Users Tax which is levied by more than 150 cities in California on various utilities such as gas, electric, cable, and water service. Furthermore, many cities levy a voter-approved parcel tax to support common town services. The Town has no Utility Users Tax nor a flat town-wide parcel tax. The Town has no plans for a ballot measure for new taxes in the near future.
In looking at the common taxes paid by residents, and this excludes what are categorized as “fees” for services such as water delivery, garbage and recreational classes – I am talking pure taxes – the average amount of taxes paid per month by a Windsor household is approximately less than $85. This is the amount allocated to the Town of Windsor. For instance, your property tax is due and payable to the County in two installments and the County collects that money and provides the Town with our proportionate share (approximately 15 percent). Sales tax is collected by the State and the State provides the Town with our proportionate share (approximately 1 percent). Taking all of the tax revenue collected for Windsor, utilizing only our proportionate share, comes out to an average amount of taxes paid per month by a Windsor household being approximately $85. Homes which are in a landscape and lighting district pay approximately $8.75 per month for this assessment, and to be conservative, the $85 average calculation assume a landscape and lighting district. We can easily compare this $85 amount to one month of a cell phone bill or a cable/internet bill.
Yet, for this approximate $85 per month, your household receives a wide array of services … including but not limited to:
-
Unlimited access to safe, clean, enjoyable parks and open spaces;
-
Many recreational services and events and no cost, including the Summer Nights Concerts, Holiday Tree Lighting, Annual Art Show, and many Senior Center activities;
-
Safe, clean streets, well-engineered and reliable roadways, like lanes and sidewalks;
-
A well-planned community with development projects vetted for design consistency, appropriateness and meeting community needs and desires;
-
Sustainability practices throughout the community that conserve resources and reduce climate impacts;
-
A stable, responsive, financially conservative Town that does not jeopardize public services you have come to enjoy;
-
A solvent local government with reserves with reserves set aside to provide for emergencies and continuity in the event of disasters and fiscal distress;
-
A consistently low crime rate; and
-
The lowest per capita police services in the area, provided through a regional agency to enhance economies of scale, and providing resources beyond that available to a typical small to medium sized city.
We are pleased and fortunate to provide a high quality of life in Windsor while maintaining low taxes.
Linda Kelly, Town Manager, can be reached at lk****@to***********.com.
