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Town council sets vote for new tax rate

What effect will the new property reassessment have on the Town of Pulaski’s real estate tax rate?
That’s what Pulaski Town Council will have to consider when it decides where to set its rate for the 2009-10 fiscal year.
Tuesday night, council voted to set a May 5 public hearing for adoption of the new rate. However, in the meantime, it must decide what rate it intends to advertise.
"I think we all know this is going to be a difficult budget," Town Manager John Hawley told council members. "We know we’re going to lose some (state) revenue."
He said the town is close to collecting 100 percent of the amount of delinquent taxes it anticipated bringing in for this fiscal year, but that isn’t going to fill the gaps that will have to be filled due to losses in state revenue.
It’s going to be up to town council to decide whether to lower the current rate to reduce the impact new assessed values will have on the citizens or to leave the rate at 32 cents per $100 of value to improve revenue.
Based on the current tax rate, Hawley said the town would essentially realize an 18 percent increase in revenue, or about $236,975. He said the "revenue neutral" rate (the rate that would result in no increased revenue) would be around 27 cents.
The actual neutral rate in the town and county will not be known until the Pulaski County Board of Equalization completes appeal hearings and makes any necessary adjustments.
The BOE recently extended the hearing dates from March 9 to March 13 to accommodate the number of people wishing to contest the values placed on their property under the new reassessment.
Council will need to decide at its March 17 work session what rate to advertise in order to meet state code notice requirements.
In the meantime, Hawley was asked to determine the amount of revenue each additional penny will increase revenue. He said the amount would be somewhere in the neighborhood of $47,000.

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Town council sets vote for new tax rate

What effect will the new property reassessment have on the Town of Pulaski’s real estate tax rate?
That’s what Pulaski Town Council will have to consider when it decides where to set its rate for the 2009-10 fiscal year.
Tuesday night, council voted to set a May 5 public hearing for adoption of the new rate. However, in the meantime, it must decide what rate it intends to advertise.
"I think we all know this is going to be a difficult budget," Town Manager John Hawley told council members. "We know we’re going to lose some (state) revenue."
He said the town is close to collecting 100 percent of the amount of delinquent taxes it anticipated bringing in for this fiscal year, but that isn’t going to fill the gaps that will have to be filled due to losses in state revenue.
It’s going to be up to town council to decide whether to lower the current rate to reduce the impact new assessed values will have on the citizens or to leave the rate at 32 cents per $100 of value to improve revenue.
Based on the current tax rate, Hawley said the town would essentially realize an 18 percent increase in revenue, or about $236,975. He said the "revenue neutral" rate (the rate that would result in no increased revenue) would be around 27 cents.
The actual neutral rate in the town and county will not be known until the Pulaski County Board of Equalization completes appeal hearings and makes any necessary adjustments.
The BOE recently extended the hearing dates from March 9 to March 13 to accommodate the number of people wishing to contest the values placed on their property under the new reassessment.
Council will need to decide at its March 17 work session what rate to advertise in order to meet state code notice requirements.
In the meantime, Hawley was asked to determine the amount of revenue each additional penny will increase revenue. He said the amount would be somewhere in the neighborhood of $47,000.

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