State To Cut Sales Tax, Morristown Set To Raise It

This week the state government crafted a much-agreed to plan for a rollback on state sales tax on food from 6 percent to 5.5 percent. The state Democrats pushed for the rollback, which is likely to be approved by the state and will go into effect on Jan. 1 2008.

The plan only affects food sales tax and customers will get a - somewhat small - break.

Except in Morristown.

Poised to enact a property tax rate increase of 40% the city also plans to provide a referendum (is it one of those city games of a non-binding votes the city has held before if the public rejects it?) which would increase the local option on sales tax on all items by .25 percent and decrease slightly the massive property tax rise. If approved, grocery taxes would be cheaper outside Morristown city limits.

In addition to the sales tax increase and the historically high new property tax on residents and businesses, the city also wants to tax residents and business under a new 'storm water assessment", a new tax based on 'impermeable square footage' for property owners and they hope to net some $400,000 annually. That's about the same amount of they city's 'book-keeping error' from last year.

The first Morristown council meeting to vote on these proposals, June 14 at 4 p.m., is also the same meeting where the public will be allowed for the first time to comment on these widespread tax increases. According to city officials, all these tax increases will only allow the city to operate for 3 years before another increase is needed.

UPDATE: As I mentioned on this topic before, I doubt there will be much if any dissent on the increase, since comparatively the rate in Mo'town is pretty low anyway. I do wonder just how much taxes and the dubious management of city finances must increase before the public does decide to get involved in the issue.