From the Northwest Indiana Times:
The City Council will consider resetting the tax rate for the cumulative capital development fund.
A hearing will be held at the March 5 council meeting to raise the rate to a maximum of 4 percent.
It isn't a new tax, said Clerk-Treasurer Chris Stidham. Property owners have been paying into the CCD, which is used to purchase equipment, for years.
However, the rate has been declining, meaning the city has collected less money. Stidham explained that a 5 percent rate was established sometime in the late 1990s. That rate has dropped to 1.7 percent.
Last year the CCD fund brought in $380,000. This year it is anticipated to bring in $225,000 because of the rate decline.
The rate declined, said Stidham, because the city allows only a small increase in the tax levy each year. As the assessed valuation goes up, the rate is adjusted downward to meet that levy.
The city can reset the rate to the maximum of 4 percent allowed by the state. That would bring in about $400,000 next year.
The impact on homeowners would be minimal, said Stidham. Those who have already reached their tax cap would not see an increase in their property tax. Those with a home valued at $120,000 would see a jump of about $8 to $9 per year.
This year, said Stidham, the money is earmarked to buy two garbage trucks, 10 police cars and an ambulance.
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http://www.nwitimes.com/news/local/porter/portage/portage-seeks-to-reset-capital-development-tax-rate/article_d28027b5-d7a9-5105-9aa9-886f5dc3e339.html
