The Jefferson City Council has approved its maximum property tax levy for the upcoming fiscal year.

The maximum property tax levy for the 2024 fiscal year is 1.56-percent, which is below the state law of two-percent or more that would’ve required a super majority vote by the council. However, City Administrator Mike Palmer anticipates the overall tax levy rate to see a slight increase.

“As it was explained to the Council, we’re seeing less valuations to come through to be taxable on and that’s mainly because commercial property is not taxable at 100-percent anymore. What we’ve seen over the last four years with this ticking down to now it’s 90-percent of taxable value (for commercial properties), it’s been about a $10 million loss in taxable value, which that hurts.”       

The overall maximum tax levy rate is $13.34 per $1,000 valuation, which is more than the current $12.89 rate. Palmer adds the rate isn’t higher because the city is paying down its debt service levy, which is calculated into the overall tax levy. The start of the next fiscal year is July 1, 2023.