Council asks state to consider lifting property tax restriction

by

Sydney Cromwell

Homewood city council members unanimously approved a resolution asking the state legislature to lift its Lid Bill property tax restriction on the city at tonight's council meeting.

The Lid Bill caps municipalities' maximum ad valorem property tax rate, and Homewood cannot exceed its current amount. Since property tax is used to fund the school system, this restriction became an issue when the city decided to take out a $110 million bond for improvement and expansion projects in the schools, parks and public safety systems.

Instead of raising property taxes to offset the cost of the school system projects, Homewood raised its sales tax by one cent in late 2016.

Residents of Homewood currently pay 31.7 mills in taxes, divided between the state, the county and the city. A mill is equivalent to one-tenth of a cent, meaning residents pay just over three cents per dollar of their home's appraised value. Homewood's school system accounts for 15.1 mills, as well as 8.2 mills for the Jefferson County school system.

Homewood is asking to be exempted from the restrictions like neighboring cities Vestavia Hills and Mountain Brook. State Rep. David Faulkner (District 46) was at tonight's meeting and said that the exemption, if approved by the state legislature, would also need to be approved in a county-wide referendum.

The school board intends to pass a similar resolution at its November meeting, Superintendent Bill Cleveland said.

Though council members said they are not specifically planning a property tax increase, they also noted that it would require a city vote to increase the tax.

The council also:

Back to topbutton