By Gary Lloyd
CLAY — The Clay City Council could vote to levy a property tax at its meeting Monday.
An ordinance “levying ad valorem taxes for the use and general support of the municipal government through the general fund of the city of Clay, Alabama” is on the preliminary agenda.
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 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. City Manager Ronnie Dixon said last year that the average home value in Clay is $120,000 and there are 2,900 houses in the city.
The meeting is at Clay City Hall at 6:30 p.m. A public hearing about the property tax begins at 6 p.m.
Contact Gary Lloyd at email@example.com and follow him on Twitter @GaryALloyd.