Oakwood is proposing to keep its tax rate the same, but that could still mean a tax hike for some homeowners.
The city is considering a rate of 4.174 mills, with 1 mill equal to $1 for each $1,000 in assessed property value. The owner of a home valued at $250,000 would pay $417.40 in taxes.
The proposed rollback rate, or the rate at which the city would draw the same amount of property tax revenue as last year, is 3.909 mills. Under state law, if a government seeks to set its tax rate above the rollback rate, that’s a considered a tax increase and public hearings must be set.
Homeowners who saw their property values increase through a reassessment would pay more taxes, even if the rate stayed the same. Those who saw their property values drop would see their taxes go down, and those who saw their property values remain the same would see no change in their taxes.
The public can comment on the proposed tax rate at hearings set for 6 p.m. Sept. 1, 6 p.m. Sept. 8 and 6 p.m. Sept. 14 at City Hall, 4035 Walnut Circle.
Tax bills are expected to go out around Nov. 1, with taxes due 60 days later, or around Jan. 1, City Manager B.R. White said.
The city uses the revenue to cover expenses in the current year’s budget. This year’s budget began Jan. 1 and ends Dec. 31.
Because the city covers its budget when the fiscal year is almost over, “Oakwood has a hurdle to overcome each year (financially),” White said. “Oakwood monitors budget expenditures very closely and maintains a little money in reserve to cover possible shortfalls until the taxes begin to be (paid).”