PAOLA — Paola City Council members, during their Aug. 11 meeting, adopted the city’s 2021 budget, which includes a decrease in the mill levy.
The mill levy is the rate in which the city collects property taxes.
The approved budget includes a mill levy of 43.387, which is a drop of almost a mill from the previous mill levy of 44.347.
Even with the reduction in the mill levy, some residents still may see an increase in their property tax bill due to the fact that the city’s assessed valuation increased by almost 4 percent, totaling more than $2 million in value.
A higher assessed valuation means the city can generate more tax revenue, even with a lower mill levy rate.
Other local taxing entities are in similar situations.
The Louisburg City Council recently approved a budget that lowers the property tax mill levy by more than 1.5 mills, but the city’s property tax revenue is expected to increase due to an increase in assessed valuation.
Paola USD 368’s approved budget includes a one-mill decrease in the property tax levy, but the district’s assessed valuation increased by about 5.46 percent.
Miami County’s adopted budget keeps the total mill levy neutral, but property tax revenue is expected to increase with the county’s assessed valuation rising from $436.6 million to $462.4 million.