Residents of Monrovia will begin paying a Cumulative Capital Development tax in 2023.
During its monthly meeting Tuesday night, the town council voted to begin collecting the tax next year.
Under state law, the maximum tax rate that can be imposed is five cents for each $100 dollars of assessed valuation on property. The law allows the tax to be phased in over three years with 1/3 of the rate being imposed the first year, and additional 1/3 the second year, and the full rate the third year.
Previous discussions had set the rate at the maximum five cents.
During Tuesday's meeting, council members discussed lowering the rate due to current economic conditions.
There was discussion on not imposing the tax at this time, but council members said there were a lot of projects that needed done in the town and the tax was the best way to provide funding for them.
In the end, the council decided to lower the maximum rate to three cents, which means residents will be charged one cent per $100 of assessed valuation of their property the first year, two cents the second year and the full three cents the third year.The resolution approving the tax comes with a list of uses the money may be used for.
Those uses include building or maintaining public buildings, repair of sidewalks and sewers, and computer equipment.
The council held a public hearing on the matter, but no one from the public appeared at the meeting to question council members.