Understanding Property Tax Rates: Voter Approval, No New Revenue, and De Minimis
When it comes to property taxes, there are three key rates that help determine how much you pay and how the city manages its budget:
Voter Approval Rate
This is the maximum tax rate a city can set without requiring voter approval. If the city proposes a tax rate that exceeds this limit, citizens must vote on it. This ensures that any significant tax increase has direct input from the community.
No New Revenue Rate
This rate is calculated to bring in the same amount of revenue as the previous year, using the current year's property values. It adjusts the tax rate down if property values have increased, helping to keep your tax bill stable if the city’s budget needs haven’t changed.
De Minimis Rate
This is an additional rate that allows smaller cities, like ours, to raise a limited amount of extra revenue (up to $500,000) without triggering a voter approval election. It provides flexibility for covering unexpected expenses or small budget increases without requiring a full vote.
These rates help balance the city’s budget needs with taxpayers’ ability to weigh in on significant changes, ensuring a fair and transparent process.