Steve Daniels again called on the Decatur City Council to avoid further property tax increases in the city at the November 3, 2008, council meeting.
"Tax increases should be the last resort for addressing budget imbalances. Not the first. High tax rates punish citizens and businesses that call Decatur home. We cannot grow our city with the highest tax rates in downstate."
Property tax rates, including the city levy, are higher than most neighboring cities and most major cities in central Illinois. At nearly $9.00 per $100 of assessed valuation, the aggregate rate in Decatur is $1 to $2 per $100 more than other communities. Decatur's rates are already 20% higher than most comparable communities. This rate means that nearly 3% of the market value of homes and businesses is collected in taxes every year. Other communities have rates between 2% and 2.5%.
Property taxes are assessed based on assessed value and a levy rate. With the already high current property tax rates, Decatur is encouraging businesses, jobs and families to choose to move to other communites. No economic decision is based on tax cost per capita as suggested by proponents of higher taxes.
Daniels reminded the city council that Decatur taxpayers already pay some of the highest property and sales tax rates in the entire United States. These high rates discourage economic growth and development within the city. The city is considering tax increases due to budget shortfalls and the adverse impact of pension costs for city employees from the national financial crises. Daniels urged the Council to reevaluate the current year budget and “live within the means” of the community.
Daniels has been a long-time proponent of fiscal restraint and competitive tax burdens to encourage economic growth. As a founding member of Macon County Shared Vision he previously encouraged the council to adopt sound fiscal and tax policies.
On Sunday, November 23, 2008, the Decatur Herald & Review also joined the dialog about the adverse affects of ever increasing property taxes. The H&R said:
........ The danger in increasing tax rates is that it harms the city competitively. A company considering bringing jobs to the area will look at the rates, not the cost per capita. The fact is that taxes in Decatur are higher than surrounding communities, and that puts the city at a competitive disadvantage. ............ Adding on to Decatur's already high tax rates could hamper growth and development in the city. The council needs to seriously consider its options before imposing higher tax rates.
Daniels has been a long-term proponent of fiscal discipline and competitive tax burden for Decatur. For example, see MCSV Talking Points - Taxes (September 2006) and Budget Statement to The City Council(April 2006).