City of Banning Budget

The average home value in Banning is just under $400,000 as of March, 2022. The annual property tax paid by a $400,000 home in Riverside County is approximately $3,200, of which, the City of Banning receives roughly $400. In 1978, the California Constitution was amended by the voters to restrict increases of property taxes. Propostion 13 requires assessment of each taxable property based on its fair market value and limits a property owner's general levy to 1 percent of the assessed value. Each year, the property taxes received by the City of Banning are approximately $7.5M. Slightly more than one-half of the property taxes are generated by residential property. The remainder is generated by commercial property. Sales taxes amount to $3.5M annually, which is very low compared to other cities with similar populations. The sales tax rate in Banning is 7.75%.

Public Safety, which includes police and fire protection services, cost $8M per year. Property tax and sales tax revenues generate about $11M per year, which leaves roughly $3M for all other general operating expenses of the City such as, parks, recreation, financial management, street maintenance, etc. There are other revenue sources that help with some of these services, but they are small amounts.

Balancing the budget is never easy in Banning because there are many needs and very little funding.