City Leaders Considering Possibility Of Raising Taxes

STARKVILLE, Miss. (WCBI)- When it comes to the economic picture in Starkville, Mayor Lynn Spruill said it isn’t a pretty one.

That’s why she and the board of alderman are now considering a two millage tax increase.

The first mil is for a grant to help spruce up Highway 182.

“One mil is to support the build grant which we received last year, and we knew at the time we agreed to except the build grant, that we would need a mil in order to support our portion of that particular expenditure,” said Starkville Mayor Lynn Spruill.

The second mil is to help the city recover from low sales tax numbers caused by the pandemic.

“We’re anticipating about a 12.5%, 13% drop and that translates to anywhere between $880,000 or so dollars, to $1.1 million depending on how good or bad it gets.”

Millage is a tax rate used to calculate tax property.

“One mil in a layman person’s terms translates into about $260,000,” said Roy A. Perkins, vice-mayor and Ward 6 alderman.

Mayor Spruill said that boils down to about a $20 a year increase, on average, for a Starkville homeowner.

“If you have a home state exemption and if you have a residential address and that’s all you’re paying, you don’t have a commercial business for example, then your rate is at 10%,” the mayor explained. “If you have a commercial business your value is at 15%.”

Perkins said he typically votes against implementing a tax increase.

However, given what the city is faced with, he said he has no other choice.

“We need a $3 million match on this federal grant for improving Highway 182, and the pandemic has caused us to lose at least $200,000 in sales tax revenue for the first six months of the year, given all of that information, the two mill tax increase his warranted.”

City leaders held the first of two public hearings on Tuesday.

There will be another one during the board’s next meeting on September first.

After hearing from the public during that meeting, the board will then vote on the proposed tax increase.

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