Get Full Government Meeting Transcripts, Videos, & Alerts Forever!
Get email alerts on the Property Taxes topic
No spam. Unsubscribe anytime.
Southaven mayor: county property reappraisal will force millage cut; full neutrality unlikely
Summary
Mayor Ford said DeSoto County must raise real-property assessments to at least 85% of market value, producing a roughly 31% jump from the county's prior 54% base and forcing the city to propose a millage reduction that likely will not leave every taxpayer revenue-neutral.
Mayor Ford told the Southaven Board of Aldermen that a state-directed reappraisal of real property in DeSoto County will require the county assessor to raise assessments to a minimum of 85% of market value, a change the mayor said will cause an approximate 31% increase from the county's prior 54% assessment level and require the city to consider a millage reduction.
The mayor said the reassessment applies only to real property and noted other tax bases''business personal property and motor-vehicle tag revenue''will not change under the reassessment, so a fully revenue-neutral outcome for every taxpayer is not possible. "Properties are supposed to be assessed for their real true market value. So it has to be assessed between 85[and]100% of the value. For whatever reason, the DeSoto County has been assessing the properties at 54%." he said.
The mayor said he will recommend a millage reduction when the board begins formal budget work this week but cautioned against cutting the rate so far that unforeseen one-time costs or errors force the city into a budget shortfall. "What I've learned in working in government for 12 years is when there's a drastic change of procedure, it's inevitable that there's gonna be something that someone forgot to think about," the mayor said. He said the city will try to "reduce the millage as much as is safely possible with also leaving a small cushion."
Why this matters: A countywide reappraisal that raises assessed values increases the taxable base used to compute property taxes. Municipalities can lower their millage rate to reduce tax bills but cannot change which classes of property are revalued. The mayor said some taxpayers will see higher bills even if the city lowers its millage because certain revenue sources that offset city budgets (business personal property, automobile tag revenue) will decline under the proposal to reduce millage.
Board action and next steps: The mayor announced his intention to present budget proposals later in the week; no formal millage resolution or vote was taken at the meeting. He asked the public to understand that a fully revenue-neutral outcome for every property owner is mathematically unlikely given the mix of taxable bases.
Context and cautions: The mayor repeatedly framed the decision as balancing taxpayer relief with the legal obligation to adopt a balanced budget: "You can't have a balanced budget without some paying more... we don't just talk ideology. We're responsible for having a balanced budget that we execute." He also noted city staff will present detailed budget options at the upcoming budget session.
The board did not take a formal vote on a millage rate during the meeting. The mayor said detailed proposals will be discussed at the budget hearings later in the week.
