Independence enacted its new property tax rates Monday night.
Although tangible property tax rates are not changing, real estate taxes will see a slight reduction.
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.
How do 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.
Both new rates are well below compensating rates, the rate needed to bring in the same amount of revenue as the preceding year.
“I’m happy to see we’re actually below the compensating rate, which is a very unusual thing for any city,” said City Council Member Greg Steffen.
“I’m glad we were able to do that, and certainly the business growth we’ve had has helped make that possible,” said Mayor Chris Reinersman.
The vote to pass the new rates was unanimous.
Related
