Carson City looks to increase property tax rate to make up for declining values
The Carson City Board of Supervisors will hear from the city's finance director Nick Providenti tomorrow on the budget outlook for the next fiscal year, and that outlook will include a call for higher property taxes.
In an interview on Tuesday, Providenti said the property tax rate should be raised from $3.18 to $3.66, which is the limit under current state law. (This rate is for those homes on the west side that are part of the Sierra Forest Fire Protection District. The rest of the city pays 10 cents less.)
Tax bills for many property owners have been going up in recent years even as values have declined, due to the voter-approved tax cap. Because the increases were limited while prices shot upwards in the mid-2000s, many property tax assessments are just catching back up to the current value.
Assessor Dave Dawley said that next year 6,470 properties would see a decrease in taxes. It's that decrease that has Providenti worried about the coming years' budgets. Providenti estimated that the city would lose $2.5 million in property taxes if the rate is not increased, meaning cut of 25-30 more jobs off the city's payroll that has already been reduced by more than 100 in recent years.
The higher rate would increase property tax revenues by about 3 percent according to Providenti, an average of $60 per home.
But, securing approval of such a hike in an election year, with the supervisors possibly placing a question on the ballot to raise sales taxes for the Carson City Center Project, may not be easy.
The meeting is tomorrow starting at 8:30 a.m. You can see the live video here.