|
Charleston set to increase taxes after initial approval
By Scott Miller
Staff Writer
Under a tax increase that easily won initial approval earlier this month from Charleston City Council, an owner with commercial property valued at $500,000 would pay $99 more each year in the city.
The proposal, which was expected to win final approval on Dec. 18, would be the city’s first property tax increase since 1999. As of press time, the vote had not taken place.
With property taxes accounting for less and less of the city’s revenue stream over the last decade and a half, as Mayor Joseph P. Riley Jr. noted, and revenue from licensing taxes rising steadily, outgoing Councilman Paul Tinkler requested future tax relief for business owners.
“The news is so good on property taxes that we could possibly afford to modify the business taxes in the future,” said Tinkler, who didn’t seek re-election.
Riley and Stephen Bedard, the city’s chief financial officer, seemingly dismissed the idea, noting that business taxes have not deterred economic growth.
A license tax increase two years ago boosted revenue by only $1 million, Bedard said. Taxes collected from licenses increased over the years simply because the numbers of businesses in
the city have increased, he said.
The license tax is expected to generate $26 million in 2008, compared to $49.2 million from property taxes.
The mayor’s budget proposal provides $2.4 million in fire department upgrades in response to the June 18 Sofa Super Store blaze that killed nine firefighters, including positions for 18 additional firefighters, six new dispatchers, four training officers, four inspection employees, new vehicles and equipment, among other upgrades.
The owner of a home worth $175,000, which Riley called average, would pay an additional $23 annually. Commercial property owners would pay more because their property is taxed at 6% of assessed value rather than at 4%.
Scott Miller is a staff writer for the Business Journal. E-mail him at smiller@setcommedia.com.
|
E-Mail This Article
Printer-Friendly Version