The idea of the city imposing a property tax increase without a public vote is sowing unrest among Columbia City Council members.
The Hancock Amendment in the Missouri Constitution sets maximum property tax rates that cities and counties can charge without a vote of the people. The maximum rate for Columbia stands at 43.29 cents, but since 2002, the council has voluntarily kept the rate at 41 cents.
On Monday night, the council will hold a public hearing on a proposal to raise the property tax without putting it on a ballot. City Manager Mike Matthes proposed the increase as part of his city budget for fiscal 2019. He said during his budget presentation that the city faces dire circumstances given the continued erosion of sales tax revenue because of online shopping.
If the council chose to set the tax at the maximum rate, a homeowner with a $150,000 home would pay an additional $6.53 a year. The increase would generate an additional $470,000 in fiscal 2019, which begins Oct. 1, according to a memo to the city council.
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