How Tax Increases Could Affect Owensboro Residents

After months of talks and town halls, Owensboro City Commissioners will vote on the budget for next fiscal year, and the tax increases going with it.

But how much will people pay to erase a deficit?

The budget and increases voted on tomorrow could effect taxpayers' wallets starting later this summer.

"I know that we will lose what we're going to gain in my cost of living increase," said Owensboro City Manager Bill Parrish, when asked how the proposed increases would affect him.

If the proposed increases are approved as part of the budget for next fiscal year, a family earning $46,500 a year, will pay more than $181 extra in occupational taxes per year.

"The average median individual, how that might effect their income, if one were to look at that on a daily basis, that' s going to cost them 24 cents," says City Finance Director Angela Hamric. "There's a median household income that we do a comparison on, and that will cost that family 50 cents a day."

Both occupational, and net profit rates, expected to go up from 1.39% to 1.78% starting July 1st. For property taxes, the owner of a home valued at $110,000 would pay an additional $1.10 a year.

"For the last eight years, the city has not raised its property tax," Parrish says. "So you either pay a little each year as you go along, or a big chunk all at once. I regret that this is happening."

Then there's the insurance premium license fee, which will go from 8% to 10%.. Under that increase, some paying an average of $2,300 in premiums for a house and two cars would pay an additional $47 a year, or 13 cents a day.

That increase won't happen until July of next year due to state rules requiring 100 days notification.  Hamric says that rate could drop back to six percent once downtown revitalization bonds are paid off in the next 25 years.


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