Council increases building tax rate
Anticipating a potential loss of more than $200,000 in real estate assessment appeals, Washington City Council voted Thursday to increase the building-only real estate tax from 1.59 mills to 2.08 mills.
The increase would generate $214,000 in revenue.
The four percent increase in taxable revenue is what the city “could potentially lose in appeals,” said Mayor Scott Putnam, who voted in favor of the increase with Councilwoman Monda Williams, who voted by phone, and Councilman Ken Westcott.
Councilman Joe Manning voted against the increase and Councilwoman Tracie Graham was absent.
Council did not change the 32.71 millage on land, which was approved Dec. 8.
Approximately 1,000 assessment appeals were filed countywide with Common Pleas Court, but those cases won’t begin to be heard until after the first of the year.
Putnam said several of the city’s larger commercial revenue sources, including The George Washington hotel and Washington Trust Building, have appealed their Washington County reassessment value.
“We want to make sure at the end of 2017, we’re not in a shortfall situation,” Putnam said.
The money generated by the tax increase will not be placed in the general fund. Any funds remaining after potential appeal deficits would be used for the city’s Municipal Separate Storm Sewer System permit.
Council approved a revenue-neutral 2017 budget on Dec. 8, based on $142 million in land market value and a $427 million in buildings.
The city is the only municipality in Washington County with a two-rate property tax system. Putnam said the practice was implemented in the mid-1980s with the intention to put less burden on residents who, for example, wanted to make improvements to homes, “because land is never going to change but a building does.”
No public comments were given during the special meeting.
The last millage rate increase in the city was in 2010.
The amended budget must be advertised for 10 days before formal adoption. Because of the holiday, Putnam said it probably won’t be advertised in time for a vote at the Jan. 12 council meeting. He anticipated scheduling a special meeting to adopt the new budget.