Property Tax Information

If a property tax increase were to have been approved, the increase would have been close to the following estimates:

Property Tax Estimate Table

What were the pros and cons of a property tax increase?

Some of the positives to a property tax were:

  1. The Highland City general property rate has not increased since 2006. The Library portion of the tax rate was added in 2007. There was actually a decrease in the rate in 2010.
  2. A property tax increase would allow all money to be gathered in November – January so the City could bid projects in the winter and do construction in spring thereby saving money.
  3. Property tax is state and federal income tax deductible. (Depending on your unique tax situation.) 
  4. Highland City general property taxes only make up 12% of your total property tax bill.

Some downsides of a property tax increase would have been:

  1. In 2012 a property tax increase was passed by City Council. It was subsequently referred to the ballot, but because of timing, the vote would not have taken place until 2013. As such, the City elected to take away the proposed increase.
  2. Tax exempt properties such as schools and churches do not pay property tax.
  3. Property tax is based on property value and therefore not uniformly applied to those who benefit from it.
  4. Property tax money goes to the General Fund not specifically to a "Road Fund".

What would have been the process be for the property tax increase?

Due to timing requirements of state law, the earliest City Council could have voted for a property tax increase would have been at the August 1 City Council meeting. Should Council have approved this option, it would have taken effect for the November 30, 2017 Property Tax Bill.

The increase would not have gone on the ballot for a vote unless the Council decision was referred by residents.