Those tax tickets you get in the mail from the Harrison County Sheriff for your home and your vehicles could be a little bit smaller this coming year if you happen to live in the City of Bridgeport. On Tuesday morning, during a special meeting of Bridgeport City Council at 7:30 a.m., the city’s governing body met to lay the levy for the 2016-17 fiscal year.

 

While the task itself is repetitive on an annual basis, what transpired yesterday morning was not repetitive. In fact, Bridgeport reduced its levy – or property tax rates – by 6.6 percent. That takes Bridgeport back to the tax rate on its general levy to the level it was at in fiscal year 2011-12.

 

“We had gradually gotten up to the maximum that the state allows, which I believe most of the cities in the area and region are also at,” said Bridgeport Finance Director Monica Musgrave. “ … (Council) decided to give back to the residents by going back to that particular fiscal year.”

 

That doesn’t mean that the entire tax ticket will be 6.6 percent lower. Musgrave emphasized that regardless of the 6.6 decrease or any other future decrease or increase, only a small portion of the amount you see on your annual tax ticket goes to the city of Bridgeport.

 

“Property taxes aren’t our largest stream of income. The biggest thing that we use for the city’s money is the B&O tax. That is, by far, the biggest. A little more than a third of the money we utilize is from B&O,” said Musgrave. “The property taxes are also a large stream, which this reduction is part of. We also have the special levy that is voted on that provides funds for the city.”

 

The city will lose roughly $150,000 in tax revenue as a result out of a $2 million-plus fund. The impact on a home costing $250,000 would provide the home owner with a break of $24.90. As of now, the cost of taxes in the municipal levy for that home would be $375, while the revised would come out to $350.10.

 

Mayor Robert “Bob” Greer said it was the right thing to do. He said there was more than one reason for Council to consider doing the tax decrease.

 

“We’ve had a fund balance at the end of each fiscal year that is usually around $1 million; at least it’s been around that mark since I’ve been on Council,” said Greer. “This year after Council looked at the budget, gave raises we believe were fair to staff and handled the rest of the city’s needs, we didn’t see a reason to tax people at the current, higher rate that would end up resulting in extra money to spend at the end of the year.

 

“We are aware that we have a sales tax that will go into place at the start of the fiscal year as well,” Greer continued. “We’ll have a 1 percent increase to the sales tax on July 1 so this seemed like an appropriate time to provide a break.”

 

For those wondering why 6.6 percent isn’t more of a break, it’s for the reason Musgrave explained above. Along with Bridgeport’s regular and excess levy that is part of the tax ticket received, the ticket also includes payment to the state fund, the Harrison County general fund, the bus levy, vital services, the school general fund, and the school excess levy.

 

Based on current rates, a $250,000 home would pay $2,265.90 annually in taxes. Of that total, $562.50 would go into Bridgeport’s coffers. The decrease, assuming all other rates are set, would take that to $537.60 going to Bridgeport.

 

Greer said the reality of providing services and meeting payroll doesn’t necessarily allow for tax cuts every year or even ones as large as or even larger than what was done Tuesday. However, he said that doesn’t mean it can’t happen again.

 

“If property values continue to grow inside of Bridgeport and you see buildouts on raw land, you will see an increase in tax dollars received and that would at least provide the possibility of doing it again,” said Greer.

 

Tuesday’s special meeting is required by state law. All municipalities have to meet on the third Tuesday in April to set the rates. The levy meeting does it officially, but cities already have that done as part of the budgeting process that is done in March.

 

Editor's Note: Top photo shows Finance Director Monica Musgrave, while Bridgeport Mayor Robert "Bob" Greer is shown below.