Huntsville residents will see a property tax rate decrease following the ratification of a $75.4 million budget for the 2020-21 fiscal year.
The new property tax rate will be 30.62 cents per $100 valuation, which is a 2.5% reduction from the existing rate of 31.48 cents. Property taxes are the second largest component of the city’s general fund, and accounts for $5.227 million in the fund. The city also collects $1.473 million in property taxes towards debt.
“In 2016, the citizens of this city voted in favor for the largest bond issue this city has undertaken. I was afraid, but we looked at it hard and studied it hard and made promises that we could do this bond issue without raising taxes,” Brauninger added. “I’m proud to say that at least in the last five years, because of growth, we have been able to lower the tax rate. That’s a great example of how God has blessed this city, and we’re so thankful.”
Sales taxes are projected to account for about 35.5% of general fund revenues in the draft budget. Sales tax receipts are expected to increase by 1.7% in the upcoming budget over the revised 2019-20 budget.