Wednesday, July 16, 2008

Property Taxes Going up in St. Mary

A move that will raise 2008 property taxes in St. Mary Parish has left three councilmen irked at their peers.

Councilmen David Hanagriff, Kevin Voisin and Logan Fromenthal all cast opposing votes; however, the measure was approved.

St. Mary Parish Chief Administrative Officer Henry "Bo" LaGrange said the hike was precipitated by a report that last year's property tax assessment had only increased 2.28 percent. Tax assessor Sherel Martin said the 2007 figure increased from $251.2 million to just over $255 million.

The council had the option of lowering, or "rolling back," property taxes or, conversely, raising the rates.

In 2007, the parish collected 7.25 mills, the maximum allowed by state law.

In order to collect the same amount of money as they did last year, and simultaneously not raise property taxes, they needed to roll back or decrease the assessed millage to 7.10 mills.

In order to collect the same amount of money as they did last year, and simultaneously not raise property taxes, they needed to roll back or decrease the assessed millage to 7.10 mills.

However, the council opted to roll back, but then roll forward taxes. Based on the $255 million assessment, that move will generate $27, 465 for the parish, bringing their total for property tax revenue to $1.849 million, La Grange said.

Hanagriff's beef with the decision to roll forward property taxes is that the public did not have a say. "I don't believe in any tax increase that is allowed without a vote of the people," he explained.

The continued swell in sales tax receipts, which are roughly $300,000 over last year's collections to date, lead Voisin and Fromenthal to oppose the decision. Last year, $19.8 million in sales taxes were collected in St. Mary.

With the money collected so far, the parish council will garner $3 million from sales tax receipts; Morgan City, $2.3 million; Franklin, $1.5 million; Patterson, $846,000; Berwick, $777,000;Baldwin, $424,000; and the St. Mary Parish Sheriff’s office, $1.3 million.

Although most homeowners will pay only $1 more a year because of the state homestead exemption, Voisin said businesses will bear the brunt of the decision to raise property taxes.

"Our parish president wanted the increases because of the parish's rising fuel costs," Voisin said. "Well, what about the business owner? Who is paying for his rising fuel costs? I think everybody needs a break."

Fromenthal said his constituents asked him to oppose the roll forward decision."I just didn't see where we need the additional dollars. We could have rolled back and collected the same amount of money that we did in 2006 and 2007," he reasoned. "Even though (the previous property tax rate) isn't a lot of money, this would have not pinched anyone. People should have a voice when it comes to new taxes."

St. Mary Parish President Paul Naquin argued the move was necessary to ensure public services. "I am not about raising taxes," he said. "I've been told that if we didn't roll forward this year, we won't be able to do so for the next four years."

"We've got rising fuel costs ... and we know another hurricane is coming. We don't know when, but we know one is coming. "I just don't want to get caught with our pants down," Naquin said.

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