Aldermen divided on property tax
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McMinnville Aldermen Donald Hillis, Jimmy Bonner and Bobby Kirby voted no, while Aldermen Jimmy Haley and Michael Chrisawn, as well as Vice Mayor Patti Nunley, voted yes. Mayor Royce Davenport broke the tie with a yes vote.
Nunley said first reading is preliminary, however, and said the proposal to increase property taxes to $2.05 could be changed by future proposals, including support or lack of support by board members when considering the issue on second reading or a proposed separate sales tax increase if one is allowed to be presented to and is approved by voters.
Hillis, who is a member of the Finance Committee, said the budget has been trimmed quite a bit already, but said he does not support a property tax increase.
“The people who own property are burdened enough with taxes,” Hillis said. “Everyone sees that as the easiest accessibility to generate revenue. I feel like there are other ways, such as sales tax, of raising revenue, and that spreads it across the entire population of that city or county.” Hillis added the rate should be low enough to attract industries into the area.
While similarly supportive of the proposal to have voters decide on whether to raise the local sales tax, Bonner said he believes spending – if it translates into a property tax increase – should be curbed.
“The only way you’re ever going to control higher taxes is to control spending, and the city of McMinnville along with the county, is spending way too much money,” Bonner said.
Some city officials have been pushing for a sales tax referendum while in search of additional revenue for this year’s budget, which is currently estimated at $18 million.
If a sales tax referendum takes place, and people vote it down, Hillis said there are no easy answers for the city.
He noted what other leaders have said when discussing the city’s 2003-2004 fiscal year budget – that it was negatively affected by state cuts and business-related reappraisals.
“We’re having to look at every option in every way to increase revenue. The last thing, and I’m not for it, is property taxes,” Hillis said, “but the sales tax issue is one way we can resolve it.”
However, Bonner said he believes the property tax increase proposal was not justified even in the wake of those cuts, and strongly supports budget cuts.
“If you’re spending too much money, you’re either going to have to get out there and get you another job if you want to keep on a spending spree or you’re going to have to cut somewhere,” he added.
Kirby said the city has done its best to cut spending and supports the sales tax idea.
“The sales tax to me is a more fair tax because it touches 100 percent of the people. The property tax only touches some of the people,” he said. “I favor the sales tax. I just think it’s a better alternative. Until we give people a choice, I do not want to vote for a property tax.”
Property tax increase
Here’s how members of McMinnville’s Board of Mayor and Aldermen voted on a proposed 11-cent property tax increase:
Voting for the 11-cent tax increase
NUNLEY
CHRISAWN
HALEY
DAVENPORT
Voting against the 11-cent tax increase
HILLIS
BONNER
KIRBY