A proposed millage increase within the city of Picayune could mean home and business owners will pay more in ad valorem taxes.
According to the legal notice advertising a public hearing, set for Sept. 8, at 8 a.m., will seek public comment on the proposal to increase the millage rate by 4.75 mills, bringing that rate from 36.61 to 41.36.
City Clerk Amber Hinton said that if the Council decides to implement the total increase of 4.75 mills, that will mean a city homeowner with a house assessed at $100,000 will pay an additional $47.50 in ad valorem taxes, bringing their tax bill from city taxes alone from $366.10 to $413.60. Homes in the city also pay school district and county taxes. The previously quoted figure does not include those taxes.
Business owners would see their taxes go up as well. While homes are taxed at 10 percent of the assessed value, businesses are taxed at an assessed value of 15 percent. That means a business assessed at $100,000 will see city taxes increase by $71.25, bringing their bill from $549.15 to $620.40.
Mayor Ed Pinero said the proposed increase is to provide pay raises to all city employees, a move he said he supports.
But, to provide that pay raise may not require all 4.75 mills. Hinton said she requested that many mills because once a request is made it can be decreased, but not increased.
In the previous budget denied by the Council during a budget hearing held on Aug. 29, a three percent cost of living pay increase was proposed.
Hinton said that the new budget proposal has not been completed at press time, so she could not say which employees will receive a raise if the Council decides to increase the millage rate.
Additionally, she said that to her knowledge city department heads, such as the city manager, fire and police chief and she would not be included in the pay raises as part of the proposed millage increase over and above the proposed cost of living pay increase.
The public is invited to attend the public hearing, which will take place in the Council chambers of City Hall.