The Pacific Board of Aldermen passed a new, lower property tax rate for 2019 at the Aug. 20 meeting.
For 2018, the tax rate was at $0.4420 per $100 assessed valuation. The new rate is set at $0.4270, but it could change as it needs final approval from the state auditor.
The new rate will go into effect July 1, 2019, based on the fiscal year.
The tax rate is determined by dividing the amount of revenue by the current assessed valuation. The result is multiplied by 100 as the tax rate will be expressed in cents per $100 valuation.
City Administrator Steve Roth said that the total valuation for Franklin and St. Louis counties combined is $136,532,441, which is up 8.4 percent from 2018.
With the lower tax rate, that will mitigate the impacts to property owners who experienced large increases in valuation this year, officials said.
Compared to other cities in the region, Pacific’s tax rate is relatively low. In 2018, Gerald, Washington, New Haven, St. Clair, Union and Valley Park all paid a higher rate.
City Attorney Bob Jones did mention to the board that he put in wording that clarified that the city is at the tax rate ceiling. He said that he added the language because St. Louis County hasn’t given final figures which will impact the final tax rate calculation.
“I inserted language that we intend to impose taxes at the tax ceiling rate, which would be the maximum amount that is supported by the arbitrator’s foreman and when passed, if there are any adjustments, that’s being handled at the department of revenue level,” Jones said.
Based on the rate, the city is expecting to generate $604,135.
The board held a property tax rate hearing before the official meeting began, but no citizens came to speak.