(Danville) — Danville leaders are floating a plan to knock a penny off of the city’s real estate tax rate. And there may be more to come.
City Council next week will hold a first reading on a proposal to reduce the rate from 84 to 83 cents per hundred dollar value. Staffers say a reassessment currently underway could increase average city property values by 12%. That, plus new construction, could generate $2,200,000 more revenue in next year’s budget.
If the 12% figure holds true, property assessed at $100,000 in the current year would be reassessed at $112,000 and the annual tax bill would increase from $830.00 to $929.60. That’s an increase of $99.60 a year or $49.80 per installment.
State code requires reassessments resulting in at least a one-percent revenue increase be advertised as a tax hike. The advertisement for the real estate tax must be published 30 days before a public hearing.
Council is already set to vote next week on a 15 cent decrease in the personal property tax rate. They’re also ready to increase the qualifying income threshold for the seniors and the disabled from $35,000 to $40,000 per year.
This would the first decrease in the real estate rate in Danville in 15 years. It would also be the first time in recent that Council has lowered the real estate and personal property rates in the same fiscal year.
Danville City Councilman Lee Vogler says the rate could be lowered even more once the final assessment numbers are in.