Here's How Canton Residents Can Weigh In on Property Tax Rate

Canton held its second public hearing on its proposed millage rate July 11, and one more hearing is scheduled for July 18 before the city council votes on it.

City staff have proposed holding the rate steady at 5.4 mills, which has been the rate since 2017.

If the millage rate is the same, Canton is expected to see a tax revenue increase of $639,467, up 5.82% from last year, according to city documents.

Under state law, if a local government keeps the same millage rate, but brings in more revenue than the prior year due to higher property values, it’s considered a tax increase.

The rollback rate, or the rate required for the city to receive the same revenue as the previous year, would be 5.287 mills.

Two residents spoke at the first public hearing June 6.

At the July 11 hearing, one resident spoke: Thomas Weaver, who was one of the speakers at the previous hearing.

“I don’t know exactly how the city is going to continue moving forward in the future to continue to keep the car on the road and out of the ditch if you continue to hold the millage rate the same,” Weaver said. “I don’t know how you are going to continue to do so without continuing to withdraw from your reserves.”

Canton Finance Director Melissa Forrester said that per the tax assessor’s May 9 report, 69.68% of the increase in the city’s digest is attributable to new construction and the other 30.32% is the result of inflation.

Canton’s millage rate includes the city’s contract for fire services with Cherokee County.

The Cherokee County Board of Commissioners are considering four options for the fire district tax .

“Through discussions with the county and the presentations they’ve made, they are discussing increases to that fire tax,” Forrester said. “The largest potential increase that was mentioned would be a difference for the city of about $435,000.”

In the most recent tax year, the county’s fire tax rate was 2.764 mills.

“The county intends to adopt their millage rate Tuesday [July 16] at their meeting,” Canton Mayor Bill Grant said, “which means if they do, that will give us the real numbers that we are looking at for fire and others to make an informed decision on our millage rate and how that may impact ours before our final public hearing next Thursday and our vote.”

Canton City Manager Billy Peppers said in June that, if Canton has a millage rate of 5.4 mills, at the county’s current fire tax rate, after the city contributes to the county for fire services, the city has about 2.636 mills left for non-fire operations. At the rollback rate, that number would be 2.506 mills, and if the county raises its fire tax rate it would be lower than that.

If the millage rate stays flat at 5.4 mills, a home valued at $300,000 would receive a Canton property tax bill of $648, according to the city. A home valued at $400,000 would have a city property tax of $864.

If the city adopts the “rollback” rate of 5.287 mills, those same properties could expect to see city property taxes of $634.44 and $845.92, respectively.

Forrester said that before exemptions, city residents see 63% of their property taxes go to the Cherokee County School District, 18% go to the Cherokee County government and about 19% goes to the city of Canton.

“With that 19%, the city of Canton pays for police, fire, building inspection, code compliance, planning and zoning, tourism, road maintenance, park maintenance, theater programs, municipal court, communications and general administration,” Forrester said.

The city council is scheduled to hold the final public hearing on the millage rate at 6 p.m. July 18 at City Hall, 110 Academy St. in Canton. The city council is expected to vote on the millage rate at that meeting following the public hearing.

The public hearings and vote will also be available to watch online at canton.legistar.com/Calendar.aspx.