Clay to hold second property tax public hearing Monday
By Gary Lloyd
CLAY — The Clay City Council will hold its second public hearing regarding the implementation of a five-millage property tax Monday, July 21.
The “brief” public hearing will be at 6 p.m. at Clay City Hall, 30 minutes before the council’s second July meeting.
The city council held its first public hearing about the property tax last month. Being discussed is a five-millage property tax that could add as much as $290,000 to city coffers. The increase in revenue would also help stabilize the city’s income.
Clay currently has no property tax.
The rate would equate to $50 per year on a house with an assessed value of $100,000. It would be $100 per year on a house with an assessed value of $200,000.
The council could levy the tax without a vote. City Manager Ronnie Dixon has estimated that the revenue from residential property alone would net around $180,000, based on Census data.
At the May 19 city council meeting, Dixon discussed a shortcoming of roughly $20,000 per month below the city’s budgeted income. At the June 2 meeting he reiterated this problem.
The city council had a five-millage property tax increase on its agenda in August 2013, but voted 3-2 to remove it from the agenda. It would have generated an additional $500,000 in revenue for the city. Dixon said last year that the average home value in Clay is $120,000 and there are 2,900 houses in the city.
Contact Gary Lloyd at email@example.com and follow him on Twitter @GaryALloyd.