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O’Fallon proposes reduced property tax rate for 2020

O’Fallon has proposed a total 2020 property tax rate of $0.5162 per $100 assessed valuation, reduced by $0.04 from the 2019 total property tax rate of $0.5562.

Missouri statutes require the city to levy the property tax prior to Oct. 1 each year, and prior to approving the levy, the city is required to hold a public hearing with notice posted seven days in advance. Property tax rates also are subject to certification by the Missouri State Auditor’s office. 

At its Aug. 27 meeting, the city council conducted a public hearing and first reading for Bill No. 7226 sponsored by Mayor Bill Hennessy to establish the 2020 property tax rate. The second reading and vote for final passage are expected at the Sept. 10 council meeting. 

Tax year 2020 is a non-reassessment year. The city’s adjusted value of existing property in the current year over the prior year’s assessed valuation has increased 0.5441%, bringing the total assessed valuation to $2.116 billion.

Considering increased total assessed valuation, other factors such as an increase of 2.3% in the Consumer Price Index, and compliance with the Hancock Amendment, the city’s general fund tax ceiling rate for 2020 is calculated at $0.3354. Vicki Boshert, O’Fallon’s managing director of finance, has recommended using that maximum rate for the general levy, keeping it the same as it was for 2019.

For the debt service levy, Boschert has recommended a rate of $0.1808, reflecting a reduction of $.04 from 2019. With the 10% increase in the city’s total assessed valuation in 2019 (reflecting reassessment), Boschert believes it is possible to roll back the property tax rate and still generate sufficient revenue to make the city’s debt service payments.

Comparison of year-over-year property tax rate components:

                                    Tax rate per $100 assessed valuation

202020192018
General levy$0.3354$0.3354$0.3551
Debt service levy$0.1808$0.2208$0.2408
Total levy$0.5162$0.5562$0.5959

Total tax rates per $100 assessed valuations for the last 10 fiscal years:

2019  $0.55622018
$0.5959 
2017  $0.58772016  $0.60462015
$0.5846
2014  $0.55122013  $0.55122012  
$0.551
2011  $0.48382010  $0.4838

Residential property tax liability examples:

Property   Assessed2019 Actual2020 Proposed
ValueValue (19%)Tax LevyTax Levy
$100,000$19,000$105.68$98.08
$200,000$38,000$211.26$196.16
$300,000$57,000$317.03$294.23
$400,000$76,000$422.71$392.31

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