The levy rate for the City of Mount Vernon increased for the second year in a row, from $13.15 to $13.33 per $1,000. The city of Mount Vernon’s levy rate had historically sat at $12.99 per $1,000 for more than 30 years, but Mount Vernon city administrator Chris Nosbisch made the case for increasing the levy rate to $13.50 over the next few years.
This year, property values saw an increase of 23% across Iowa. That means 18 cents per $1,000 is generating revenue for the city.
“I really think the property tax system in Iowa needs changes,” Nosbisch said. “The drastic increase in valuation to properties that happens every two years is what concerns most citizens, especially when citizens have done nothing to improve their homes in that time span and the value goes up.”
Nosbisch also said communication sent out by Linn County showing what this year’s current levy rate would be given the budget stays the same will confuse people. Because the annual budget changes based on salary adjustments and city projects, the information may not reflect the actual levy rate.
In a handout provided during the budget hearing, the levy rate for a $100,000, $125,000 and $150,000 property was shown compared to that of a $100,000 property today. For a $100,000 property today, the taxable value per $1,000 is $54.65, generating $718.92 in revenue for the city.
For a $100,000 home this year, the taxable value is $46.34 per $1,000, which when multiplied against the $13.33 levy rate is $617.99 of revenue for the city. A $125,000 property today would have a taxable value of $57.93, which would generate $772.56 of revenue for the city. A $150,000 home this year would have a taxable value of $69.51, which would generate $926.99 of revenue for the city’s levy rate.
There were no citizens in attendance for the budget hearing.