New Market City Council to Set Property Tax Monday Night | Every day

The New Market Town Council is due to set the property tax rate at its meeting tonight.

A special council meeting and public hearing on the proposed tax increase was held on April 4, but no citizens attended. Council members Janice Hannah, Bob King, Peggy Harkness, Peter Hughes and Mayor Larry Bompiani attended the meeting.

During the meeting, City Manager J. Todd Walters discussed the matter.

Walters noted that the total real estate appraisal value – excluding additional appraisals due to new construction or property improvements – exceeds the total real estate appraisal value of Last year.

The reduced rate needed to offset the increase in appraisal value would be $0.1139 per $100 of appraisal value. The tax rate would be lower, but the amount of income generated would remain the same, making it revenue neutral.

Walters explained that if the tax rate were to remain the same at 14 cents per $100 of assessed value, then that rate would be considered an increase, which would generate more revenue for the city’s general fund. Walters explained that maintaining the same tax rate would produce approximately $55,000 in revenue for the city’s general fund and offset the loss of bank franchise tax paid by Primus Bank.

“The additional revenue will help recover the loss of revenue that we will have when Primus Bank closes in May 2022. They pay us the bank franchise tax every year, and we normally get it in June,” Walters said. . “When they close, that money is gone; unless another bank comes in with the same amount of deposits, we would lose $39,521.

Another concern that was considered when discussing the proposed tax rate was inflation and how that might put a strain on the city’s general fund. Projects planned for the next fiscal year will be affected since supplies and labor are more expensive.

“I realize that you technically have to be looking at a tax increase, but with the loss of the bank, out of that $55,000, you really only have about another $15,000 to $16,000 that you’re really going to generate in your revenue streams,” Walters said.

City Council will meet tonight at 6:30 p.m. in the Council Chambers of the Arthur L. Hildreth, Jr. Municipal Building.

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