At last night’s Council meeting, the City Council decided to reduce the Homestead Tax Credit rate from 4% to 2%.
The Homestead Tax Credit rate is a percentage limiting the increase of real property assessment from one fiscal year to the next; it is only applicable to owner occupied properties. The Homestead Tax is meant to help owner occupied property owners when market value assessments increase by limiting the increase in taxable assessments each year to a fixed percentage. Currently the City’s Homestead Tax Rate is 4%, if passed this Ordinance will lower the rate to 2%.
The estimated fiscal impact to the City for FY2018 would be a reduction in tax revenue of $29,882.
Council also held a public hearing earlier in the evening to take comments from residents. It also received a few emails in support of the proposal.
The City must notify the State Department of Assessments and Taxation buy November 25th if it wants to may any changes for the taxable year beginning July 1.