Independence is looking to lower its property tax rate again this year, but homeowners shouldn’t expect much of a difference in their bill.
The city council performed a first reading of its property tax rates Monday night. They will cast a final vote on the rates on Monday, Sept. 14.
The proposed real estate property tax rate is $0.193 per $100 of property valuation. That’s a reduction from last year’s rate of $0.194 per $100 of property valuation. The tangible property (also called personal property) tax rate, on the other hand, isn’t changing: $0.534. Both new rates are well below compensating rates, the rate needed to bring in the same amount of revenue as the preceding year.
Mayor Chris Reinersman admitted that, projecting out five years, the new rate “does put us into the red in the coming years,” he said, but given the city’s growing business environment, “I feel this is something we can handle.”
Real estate property taxes are levied against homes and commercial real estate. Tangible property, on the other hand, is taxed against equipment and other movable property, essentially anything that’s not nailed down. Tangible property taxes tend to affect businesses more than residents.
Last year saw one of the largest property tax rate cuts in the city’s history from $0.22 per $100 to $0.194 per $100, a 12% rate reduction. The council at the time considered this a way to offset increased property valuations in the city.
The Independence City Council will meet again on Monday, Sept. 14, later than when they typically meet each month due to Labor Day, to cast a final vote.
Read LINK nky’s property tax explainer below to learn more about how property taxes work.
Property taxes are broken down into several categories. The first and usually largest chunk of your tax bill is real property tax, sometimes referred to as real estate property tax. This is essentially a tax on everything you own that’s nailed down. For residents, this means houses and other real estate property. For businesses, this means office buildings and other buildings and facilities used to conduct business.
Tangible personal property, on the other hand, is another form of property that isn’t real estate. Depending on where you live, residents may not be taxed on personal property at all–this will vary by jurisdiction.
Depending on where you live, other tax-adjacent fees may apply.
How do property taxes work?
