Council at their regular meeting, April 14, 2008 made the move from a minimum tax to a base tax method of taxation. Council feels that this move will closer reflect the cost of services available to a property as opposed to the present method of taxation. With escalating costs in the construction industry this method should place Kipling in a better position to complete in the upcoming months in the housing and commercial sectors.

The base tax is revenue neutral in the fact that no more revenue will be generated, however, there will be tax shifts among the assessed properties. The residential base tax has been set at $1,100 per property with the commercial/industrial base tax set at $1500 per property.

The present mill rate will be set at one and all the usual discounts will still apply. The Town still applies a $75.00 special tax towards the new hospital fund.

The base tax is calculated using the cost of transportation (roads etc.), general government, recreation, planning and development, environmental, health and protective services. These costs are then divided by the number of properties to determine the base tax amount. The re-distribution of taxes will definitely be more apparent with some assessed properties than others; however, Council feels that this method of taxation will promote growth and is a more equable way of taxation as the Town enters its new century.

TAXES 2008

The base tax set by Council for 2008 shifts the taxes levied per property to more of a service-based method of taxation.

The most common question that comes to mind is - What do my Taxes Pay For?

Fire Protection

Police Protection

Streets- Lights, Pavement, Snow Removal, Sweeping, etc

Economic Development

Recreation

Assessment/Audit Fees

Mowing Parks and Grounds

Insurance on Municipal Buildings

Garbage Pick-up and Tags

Housing Authority- Deficit/surplus

Recreation Center

Airstrip

Handi-Van

Municipal staff wages

Memberships

Utilities- Water and Heat in the municipal buildings

As the school and municipal taxes are separate, final amount of taxes will be announced once the school board sets its mill rates.