Grand Forks city officials are considering a decrease to next year's property tax rate.
With the city's recent growth and rising property values, the value of a mill - the unit used to determine property tax - has increased 7.34 percent.
Because this growth in value increases property taxes, City Finance Director Maureen Storstad proposed to City Council members Monday a 2.08 mill reduction to the tax rate.
With the 2.08 mill reduction, someone with a $100,000 home would pay $400 in property taxes to the city next year, compared to $408.12 without the mill reduction.
Those figures factor in a 12 percent portion of taxes being paid by the state, Storstad said.
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The 2.08 mill reduction still does not meet the state definition of a zero-mill increase, which means the reduction still would not cancel out a property tax increase due to the the increased value of a mill, she said.
The city is able to decrease its mill rate because of growth, including new properties that expand the city's tax base, Storstad said. The city will still be taking in more total revenue from property taxes this year compared to last year if the mill reduction is approved, she said.
Property taxes paid to the city are put toward public safety services, street maintenance, the public library, the airport and other services, Storstad said.
City Council will continue discussing the city’s 2016 budget this summer.
