Greenwood residents will continue paying the maximum tax rate to fund city projects, such as possible street repairs, though the rate could have gone down.
The city council this week gave a first approval to the 5 percent rate, which the city has to renew annually to keep at the same level. If the city doesn’t choose a specific rate each year, then the tax rate goes up or down to stay at a fixed dollar amount based on property values. The tax rate would have gone down to 4.7 cents per $100 of assessed value next year, if the city hadn’t approved keeping it the same, controller Adam Stone said.
The money goes into the city’s cumulative capital development fund, which is similar to a savings account for projects, and can be spent on information technology department expenses, such as new software and police department equipment.
The current rate of 5 cents per $100 of assessed valuation is the maximum the city is allowed to collect in taxes for the capital projects fund. The city brought the rate up to the maximum in 2013 for the first time since 2011.