In the course of two days this coming week, homeowners in Smithville may be hit with a pair of tax hikes as DeKalb County eyes raising county taxes 29 cents while the city will hold second reading on a measure that would increase Smithville property taxes by a quarter.
Action by the county commission will come first Monday night as the budget committee is recommending the county raise the property tax rate by 29 cents on $100 of assessment. That would mean property owners will pay $2.12 per $100 in assessed value as opposed to the $1.83 they pay now.
Commissioners seem split over the tax hike with supporters saying it is necessary for the fund-strapped county government while others saying it is too much for those on limited and fixed incomes to endure. It was also pointed out during Thursday night’s workshop that the tax hike does not include the pending request from the school board for DeKalb County to fund a new K-2 elementary on the Northside campus.
Should the county tax hike be shot down Monday night when the commission convenes at 6:30 p.m. downstairs at the courthouse, the county will find itself going $1.6 million dollars in the red. That will require dipping into the rainy day fund to satisfy the proposed budget for the coming year.
It will take eight votes to pass the budget; however, the entire commission will likely not be in attendance. An attempt to change the day of the vote was shot down last month, with at least two commissioners saying they would be out of town when the vote comes up Monday. It will still take eight members of the 14-member commission to vote for the new budget in order for it to pass, no matter how many commissioners show up.
While residents outside the city will feel it in their wallets should the tax hike pass, city residents will be getting a double dose of higher taxes come Tuesday night should the city’s planned 25-cent tax increase pass second reading.
Citing the building of a new police station and other issues, the city board passed, on first reading, an upping of the city property tax from 64 cents to 89 cents per $100 of assessed value. The first reading passed 3-2. The city board of mayor and aldermen will meet Tuesday night at city hall for a final vote on the budget. Should it pass, the new tax levy will go into effect July 1 and will raise about $350,000 extra a year, keeping the city out of the red, at least for the time being.
