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Zion council approves $1.54 million property-tax abatement tied to CJA funding
Summary
The Zion City Council approved an ordinance abating $1,538,876.56 in property taxes under the CJA program, a move city officials said will reduce the city's levy by about 17% but could interact with PTEL limits; council also cited pending state legislation (House Bill 4465) to prevent long-term penalties.
The Zion City Council on Feb. 17 approved an ordinance to abate $1,538,876.56 in property taxes associated with the CJA (global jobs act) program.
Administrator Nabel told the council the abatement represents roughly a 17% reduction in the city’s property tax levy and is intended to pass through tax relief tied to the CJA funding. "The amount that I'm requesting we abate is $1,538,876.56," Nabel said.
City officials cautioned the council that the state’s Property Tax Extension Limitation Law (PTEL) can lock a lower levy if the abatement reduces the tax base, potentially penalizing the city if the CJA funding later disappears. Nabel said the city’s state representative and senator are pursuing legislation to address that risk: "The house bill has been called in committee, House Bill 4465," he said, and officials are working to ensure the city is not harmed long term.
The council moved to approve the resolution (motion by Commissioner McDowell, second by Commissioner Stackhouse) and approved it by roll call; the motion was recorded as carrying by the council.
Why it matters: Council leaders said the abatement will pass substantial CJA-derived revenue directly into tax relief for residents, while warning that statutory interaction with PTEL could permanently depress future allowable levies unless the state statute is modified. Administrator Nabel urged residents to review the posted materials and referred interested parties to the legislative committee handling House Bill 4465.
Next steps: Nabel said staff will monitor the state bills and return to council with any required follow-up ordinances or clarifying language if legislative fixes are enacted or needed.
