City property tax levy reduced


Elimination of surcharge results in tax reduction

By Charles Warner - cwarner@civitasmedia.com



By Charles Warner

cwarner@civitasmedia.com

UNION — Homeowners in the City of Union will see a reduction in their municipal property tax due to the elimination of a surcharge the city has levied for the past two years.

During Tuesday’s Union City Council meeting, council received a report on the municipal property tax levy prepared by Finance Director Walker Gallman.

The report explained that the law requires the county or the state to “once every five years … appraise and equalize those properties under its jurisdiction. In the year in which a reassessment program is implemented, the new rollback millage is calculated by diving the prior year property tax revenue by the adjusted total assessed value applicable in the year the values derived from a countywide equalization and area assessment program. This value must be adjusted by deducing assessments for property or improvements not previously taxed for new construction and for renovations of existing structures.”

This reassessment process was under way when the city began its budget process for fiscal 2015-2016 and was continuing when the council set the tax levy for the new fiscal year at 84.2 mills. This was down 8.33 mills from the 2014-2015 levy of 92.5 mills.

Gallman’s report states the the 2014-2015 tax levy of 92.5 mills included a surcharge of 8.33 mills which was eliminated from the new 2015-2016 tax levy.

In an interview with The Union Daily Times Thursday morning, Gallman said the city had first levied the surcharge two years ago to recoup some prior year deficits in the general fund. The surcharge was 10 mills the first year, but declined to 8.33 the second year before finally being completely eliminated.

The elimination of the surcharge means homeowners in the City of Union with legal residences with the following values will see the following reductions in their property taxes:

• On a house valued at $50,000, the tax will be reduced approximately $17 to $168.

• On a house valued at $100,000, the tax will be reduced approximately $34 to $336.

• On a house valued at $150,000, the tax will be reduced approximately $51 to $505.

• On a house valued at $200,000, the tax will be reduced approximately $67 to $673.

Gallman’s report to council Tuesday was due to the fact that reassessment was still under way when the tax levy was originally set creating uncertainty as to whether the city would have to rollback taxes based on the results of the reassessment. In his report to council, Gallman stated that “the net assessed value for roll back millage calculation shows a decrease compared to the previous year. Since there was no increase in assessed value, the tax millage rate that City Council set with the FY 2016 Budget of 84.2 mills will not need to be adjusted.”

Charles Warner can be reached at 864-762-4090 or cwarner@civitasmedia.com.

http://uniondailytimes.com/wp-content/uploads/2015/10/web1_union-logo.jpg
Elimination of surcharge results in tax reduction

By Charles Warner

cwarner@civitasmedia.com

Charles Warner can be reached at 864-762-4090 or cwarner@civitasmedia.com.

Charles Warner can be reached at 864-762-4090 or cwarner@civitasmedia.com.

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