Property tax rates are going down this year in Lake Saint Louis and Dardenne Prairie, which means tax bills can drop in those cities.
Both cities’ boards of aldermen approved setting their 2017 property tax rates this month. Taxing jurisdictions have until Oct. 1 to set their rates. Tax bills will be sent out by the St. Charles County Collector of Revenue in early December with a Dec. 31 deadline for payment.
The bill will have tax amounts due from all taxing jurisdictions serving a resident, which can include fire, community college, school, ambulance and library districts.
The Lake Saint Louis Board of Aldermen approved a tax rate of 54.21 cents [.5421] per $100 assessed valuation for the city’s general fund and 47 cents [.4700] per $100 assessed valuation for debt service at its Sept. 18 meeting. That compares to 57.64 cents [.5464] per $100 assessed valuation for the city’s general fund, and 47 cents [.4700] per $100 assessed valuation for debt service last year.
Dardenne Prairie’s property tax rate was set by the board at its Sept. 20 meeting at 10.54 cents per $100 assessed valuation, compared to 10.58 cents last year.
Property taxes are determined by multiplying the current tax rate by the assessed valuation of a piece of property. The result is divided by $100 to come up with individual taxes.
Reducing tax rates in many cities has to do with the overall increase in property values this year, due to reassessment by the county assessor’s office. The Missouri Constitution states that cities cannot enhance their revenue beyond modest limits without voter consent. Reducing tax rates allows cities to stay below those limits.
For example, for the first time in several years, Lake Saint Louis’ assessed valuation for real estate went up significantly, requiring tax rates to come down. The city’s real estate valuation was up by more than $30 million this year.
In Dardenne Prairie, the city’s tax rate has come down from four years ago, when it was 11.5 cents per $100 assessed valuation. Dardenne Prairie had the lowest property tax rate among municipalities in St. Charles County in 2016, according to the county collector’s office. Weldon Spring, Foristell, West Alton and Josephville have no property tax.
A lower tax rate, however, does not necessarily mean residents will automatically be paying less in taxes just because the assessed valuation of an individual home has gone up.