Tax savings of Prop 2 questioned
Proponents of a proposed sales tax on the Aug. 7 ballot outline improvements planned for Jefferson City Fire Department in campaign literature. Click on the icons in the accompanying article to view the documents.
Friday, July 27, 2012
Supporters of a Jefferson City Fire Department funding ballot issue have promised voters that passage will mean a 17 percent reduction in their property taxes.
What they haven’t always specified is the drop applies only to the city’s portion of the property tax. And they’ve never touted the overall property tax decrease: 1.7 percent.
In interviews with four members of Citizens for a Safer Community on Wednesday, they generally said they understand the distinction, and have explained it well to voters.
They stress it was never their intention to mislead voters. But some apparently were misled.
A campaign flyer line reads: “Property taxes reduced by 17% for city residents on home, business property and personal property.”




Comments
JCsleeper 10 months ago
If a government entity collects more money, it is a TAX INCREASE. Don't think that a 1.7% overall reduction in one's total property tax bills - real estate and personal - is going to offset a .25% sales tax increase.
a2325 10 months ago
This is not a .25% tax increase. It is a 1/4 of one penny tax increase. You have to spend $4 bucks to even have 1 red cent in tax. Homeowners will save money with the City portion reduced by 17%. And when this passes they will save more money when the City's ISO rating is lowered on homeowners insurance!
Silverado_Phil 10 months ago
.25% = 1/4 of one penny.
dokeus6 10 months ago
Thanks for letting us know the truth behind this Mr. Tritz. If it would have been a 17 percent decrease in total property tax, yes they would have my vote but since it's just the city property tax. I don't think I can go along with this proposal. In the long run, I think paying my total city property tax will be a lot cheaper than paying the 1/4 cent sales tax hike.
a2325 10 months ago
Since the very beginning the language of the proposed sales tax has been clear. How could someone think that the CITY could have control over the county or state portion of their property tax. It has always been clear to me that the 17% tax reduction was in regards to the City tax. In the long run? Do the math here. $4 spent = in tax $0.01
$40 spent = in tax$0.10
$400 spent = in tax $1.00
$4000 spent = in tax $10.00
$40,000 spent = in tax$100.00
$400,000 spent = in tax$1,000.00
You would have to be spending alot of money in the city to equal what you would save in the 17% reduction
The truth? The truth is that this reporter is trying to create drama for a "better story" . Start by reporting the facts. Dont try to jazz it up. Just the facts please!
JCLifer 10 months ago
They are playing "smoke and mirrors" with the numbers to hide their true intent, which is to RAISE TAXES.
However, I might vote for this one anyway, since I support getting rid of all property taxes and changing them to sales taxes.
Forward 10 months ago
Just do the math people. For example the city portion of my real estate tax bill is $166.00. Prop 2 states that you will see a 17% reduction in this. 17% of $166.00 is $28.22. So my real estate tax would drop $28.22. To equal that amount of savings I would have to spend $11,300. .0025 (which is one quarter of one cent) x 11300 = $28.25.
Keep in mind that this is only figuring real estate taxes. The reduction also applies to personal property which includes auto.
When you run the numbers it is pretty clear. Most will see a reduction in overall taxes. Who cares if you support the fire dept or the city but lets lower our set taxes and let everyone who shops in the city pay for the services.
connor 10 months ago
So a little over 11 K in spending inside Jefferson City = 28.22 in taxes. I am not even gonna bother to figure it up myself I will take your figure as honest.
A 17% reduction in property taxes will vary I imagine.
Now let's hope the council doesn't just raise property taxes in the years the sales tax is issued. Ya it isn't like they never raise property taxes or anything. Oh and if the Library tax gets added to the property tax how will that effect the numbers? Also as a homeowner outside of Jefferson City I know I spend more than 11K inside the city each year so the net result will be more taxes paid by your average home owner inside the city and even more taxes paid by those outside the city who will perhaps begin going elsewhere.
I also pay Jefferson City property tax on a home I own inside the city. I wouldn't fall for this charade in a second. As a home owner you will end up paying some small amount more in axes each year while the city will rake in a good amount of taxes they were never able to get before and then raise your property taxes back up in a year or two after everyone has forgotten.
RetiredOne 10 months ago
Just a reminder, this tax will apply to everything you buy in the city limits. This includes all you buy at the grocery store, your utilities, your trash bill, and at the gas pump. The tax paid by the average taxpayer in Jeff will go up.
a2325 10 months ago
It will go up 1/4 of 1 cent for every dollar. We wont even notice it! Its not going to hurt anyone's pocket book in the slightest.
RetiredOne 10 months ago
It is a tax increase! Every utility has increased their rates. Every one has their hand out for more money. It affects the bottom line. A resident in JC that does not own property will not see the benefit of the tax reduction but will see their buying power decrease.
JCLifer 10 months ago
Gas prices are already way too high in this town.
online_editor 10 months ago
To clarify, there's no city sales tax in Missouri on purchase of fuel at the pump, just state and federal fuel tax. Some of that is then distributed to cities and counties, but this proposal has no impact on taxes at the pump. --Rick Brown, online editor, News Tribune
JCLifer 10 months ago
Which is it? 17%, 1.7% 25%, or .25%?
Too many numbers being discussed here!
Maybe KRCG can do an article and explain it simply in a language that we all can understand.
PatsyDecline 10 months ago
I'm voting NO on this tax increase.
If the JCFD needs the funds so badly they can start charging the 45% of JC non-residents their ad touts.
I vote NO to ALL tax increases whenever given the opportunity. I'm confident the vast majority of my fellow Missourians do the very same.
JCLifer 10 months ago
No kidding.
rodinman 10 months ago
The city council can reinstate the property tax with a simple vote. Also, the city council has never mentioned what their plans are for the money currently used to fund the fire department should this tax pass. That's correct, all the other funds, such as about $600,000 in the capital improvement tax, will be freed up and be available for other uses. Don't suppose the council has plans to use these funds for those projects that the citizens soundly defeated in February. The city council should defund the Chamber of Commerce the budgeted $300,000 until they can show proof that they have generated at least that much city revenue in new business.
Gabrielle 10 months ago
with this, the library tax and likely a tax for schools in the near future - good thing Transformation didn't pass!
BillyJoeRayBob 10 months ago
There is absolutely no assurance that any funds raised by passage of this proposition, or funds funneled towards the fire department from any other sources will result in a lower ISO rating in the city. There is much more that goes into determining a department's ISO rating and a lot of it is beyond their immediate control. Google ISO ratings if you want to learn more. There are volunteer fire departments in the U.S. that have ISO 1 ratings and it doesn't have to do with how much money is spent. There is also absolutely no assurance that an improved ISO rating would translate to homeowners seeing a reduction in their homeowner's insurance. That is totally at the whim of the insurance companies and market conditions.
countyfactor 10 months ago
Prop2 is referendum to eliminate a dedicated property tax. Here is the actual ballot language. Shall the City of Jefferson reduce the property tax levied for the Fireman's Pension, currently $0.0961 (approximately 17% of the City's total property tax) to $0.00 and in lieu there of impose a sales tax of one fourth (1/4) of one percent for the purposes of providing revenues and improvements for the operation of the Jefferson City Fire Department, for the period of January 1, 2013 to December 31, 2027? So rodinman you are simply mistaken they can only reinstate the property tax after December 31, 2027. And this tax does not take effect until January of next year, but you receive the property tax deduction this year. Everyone talks about this issue is about the Fire Dept. it's not about them it's about me and my family. I think my family is worth the 1/4 of 1 penny to keep them safe! Can't Waite!
rodinman 10 months ago
I called the city attorney and he said the tax could be instated by a simple majority vote of the city council. He did not state a time frame. If passed, the tax will end in 2027.
RobHunterJohnson 10 months ago
Support Proposition 2, we need the very best for Jefferson City! Rob
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