City of Salem increases personal property tax rate
Updated On: Jun 23 2014 09:06:11 PM EDT
Homeowners in Salem can expect to pay more money in the next year.
Salem City Council heard from four residents Monday night regarding the proposed increase on personal property taxes.
The city considered raising personal property taxes from $3.20 to $3.25 per $100 of assessed value.
According to a city spokesman, council unanimously passed the increase.
The city hopes to generate approximately $125,000 annually with the new rate. It will go into effect on January 1, 2015.
Despite the increase, Salem remains in the bottom 20% of personal property tax rates in the Commonwealth.
Salem City Council also adopted the 2014-2015 budget. It includes a garbage collection rate increase from $1 a month to $7 a month.
A spokesman for the city said the new revenues are for employee and school division compensation and capital projects, but the city cannot decide how it will disperse the money until the state budget is finalized.
Copyright © 2014, WDBJ7