Cape council to set tax rates today

The Cape Girardeau City Council will look to slightly lower its general and health-fund tax levies to comply with state law when it meets today.

Under state law, local governments cannot increase tax levies more than the rate of inflation, city finance director John Richbourg said.

The more than 3 percent increase in the current year's base assessed valuation is more than the 2.1 percent rate of inflation as certified by the State Tax Commission, Richbourg said.

Initial assessed values of real property increased $23.2 million, or 4.69 percent, while the value of personal property decreased more than $602,000 in the city from the previous fiscal year, he said in an agenda report to the council.

New construction accounted for only 15.4 percent of the assessed value growth of real property, Richbourg said.

The council, after a public hearing, is expected to set the rates per $100 assessed valuation at $0.3008 for the general fund and $0.0564 for the health fund, a decrease from $0.3037 and $0.0569, respectively.

In the sales-tax-dependent city, property taxes account for only 7.5 percent of the city's general-fund revenue, Richbourg said.

The council is slated to increase Cape Girardeau's Downtown Special Business District levy from $0.6699 to $0.7699. Richbourg said the increase is allowed under state law because of a drop in the district's base assessed value.

The district's assessed value dropped by more than 5.3 percent, he said. The new levy is projected to produce the same amount of revenue as was generated in the previous fiscal year, Richbourg said.

City property taxes account for only a small part of the county tax bills, he said.

A homeowner who owns a house with a market value of $200,000 would pay nearly $136 in real estate tax to the city.

Cape Girardeau residents would pay nearly $12 for each $10,000 of personal property they own, Richbourg said.

mbliss@semissourian.com

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