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Democracy on the Front Lines
City Administrator’s Blog
Walter Denton
December 7, 2007
The City Council approved the City’s property tax levy at Monday’s City Council agenda. I have blogged several times (here, here and here) about the township multiplier and how we feel it is not representative of the actual home values in O’Fallon. In response, we have reduced the tax levy by the amount of last year’s multiplier.
As a result, current property owners will pay the same City property tax as last year. The only increase in City property tax revenues will come from new residential and commercial development (about $320,000). Of course, the City’s share of the total tax bill is small and other taxing districts are unlikely to duplicate our efforts, but we feel it is unfair to levy the township multiplier when actual home values are flat or declining. By foregoing the Township Multiplier, the City is in essence abating about $300,000 in property tax revenues.
It is important to note that the Township Multiplier is not imposed by the City Council, but is determined by the County Board of Review with assistance from the County Assessor’s Office and is their estimate of the increase in home values for that year.
We have held the line on property tax rates for the past eight years. The multiplier has nothing to do with the City and we are doing what we can to neutralize its impact on City revenues. We have no control on the sales prices of property or the county’s decision to raise the Township Multiplier. If you feel your home’s value increased inappropriately, the appeal procedure for property owners is to appear before the County Board of Review and show that your property did not increase in value by 7% last year.
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