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Pleasantville council begins contingency planning if state eliminates property tax, considers local income tax
Summary
Council members spent much of the meeting weighing options if the state eliminates local property taxes, reviewing that the village receives roughly $90,000 a year from three levies and discussing a possible 1% local income tax to replace revenue; officials plan public education and hearings before any vote.
The Village of Pleasantville spent a large portion of its March 13 finance meeting discussing how it would respond if the state moves to eliminate local property taxes.
Councilmember Jason told colleagues the village currently collects about $90,000 a year from three 2-mill levies that fund the general fund, parks and police. "We're gonna lose $90,000 a year in our budget," he said, urging the council to study alternatives now so the village can be prepared if state action materializes.
Why it matters: Pleasantville's property-tax levies date from different years and are calculated on older taxable valuations, so the council said those levies undergird basic services. Staff and members noted that losing that revenue would likely require cuts to payroll or service levels unless new local revenue is adopted.
What the council discussed: Jason explained levy types (new, replacement, renewal) and the mechanics used to compute yields; the council examined a sample household tax bill and the village's median household income ($30,000 in 2023) to estimate resident impacts. Officials sketched a possible local income-tax alternative, saying a 1% local income tax could generate roughly $140,000 a year (the council used that figure as an illustrative scenario) and would shift some burden to workers and renters who do not directly pay property tax.
Council members emphasized the need for public outreach and education before any policy change. President Dumal and others said the discussion should include public hearings and clearer modeling of revenue impacts across different neighborhoods and work/residence patterns.
Next steps: The council did not take action to adopt a new tax but agreed to continue study and to schedule public hearings and information sessions if the state moves toward eliminating local property taxes. No formal proposal or ballot measure was presented at the meeting.
