(Photo: City of Henderson)
The City of Henderson is asking voters to increase their own property taxes – a move that exempts the hike from the cap imposed by the Nevada Legislature in 2005.
Labeled “City of Henderson Question Num. 1” on the ballot, the proposal would fund fire services by increasing property taxes by 6 cents per $100 of assessed value. The increase would add $21 a year to the property taxes for each $100,000 of valuation. A home valued at $500,000 would pay an additional $105 a year.
One cent of the 6 cent hike would be used to repay $27.5 million in general obligation bonds that would be used to construct and modernize fire facilities, while the remaining money would fund fire service operations, including emergency services, personnel and equipment. The increase would be in effect for 30 years.
Fire services are currently budgeted from the Henderson general fund.
Supporters of the measure say the city’s growing footprint and population – from 284,968 residents in 2014 to 343,791 in 2024, and projected to increase to 374,700 by 2029 – requires an increase in revenue to support fire services.
“Currently, the fire department does not have a dedicated revenue stream,” says the city’s argument for passage. “Each year, it must compete for budget money alongside the 16 other City departments,” increasing “the likelihood of underfunding a department which directly impacts our safety and well-being.”
At a February city council meeting, Finance Director Jim McIntosh noted that given the 2005 legislatively-imposed cap of 3% annual growth on residential property taxes, and 8% cap on commercial properties, coupled with the Great Recession, property tax revenue has not rebounded. “Specifically, for some of our commercial properties, they ratcheted down,” he said.
Opponents of the measure note the proposed tax would increase Henderson’s property tax rate from 77 cents to 83 cents per $100 of assessed value.
“No doubt the rapid growth in our City has generated numerous requirements for additional and improved services; however, the prospect of raising property taxes now represents an increased tax burden at a time when inflation and increasing prices continue to erode our purchasing power,” says the argument against the increase.
The opposition notes the city could seek additional property tax increases, adding Henderson’s low property tax rate, well below the national average of .99 cents per $100,000 of value, is “among the many favorable aspects of living in Henderson.”
Opponents “respectfully suggest that the City might find additional funds for improved response times for emergency services through a reallocation and re-prioritization of its existing budget.”
A second Question 1 for Henderson voters – labeled “Henderson Library District Question Num. 1” on the ballot – proposed by the Henderson Library District, would increase property taxes by 2 cents per $100,000 of assessed value to be used to operate and maintain libraries, as well as to build new facilities in newly developed areas of the city.
The increase would add about $35 to the annual property tax bill for a home valued at $500,000, and would also be exempt from the legislatively-approved cap on property tax increases.
Early voting begins Oct. 19 and Election Day is November 5.