If Covington’s commercial property owners participate in a CID, they hope they’ll see a solid return on their investment, but they will have to pay more in taxes.
Most CIDs have a millage rate of 5. For perspective, Covington’s millage rate (also called the property tax rate) is 8.208, Newton County’s millage rate is 11.54, and the school system’s rate is 20.
A commercial property worth $500,000 would pay an additional $1,000 annually in taxes to go toward the CID.
One of the corridor’s most valuable properties is Newton Plaza, owned by Halpern Enterprises, which the Newton County Tax being worth $13.39 million. That property would pay an additional $26,780 in taxes at 5 mills.
The key for property owners is that money goes to a fund they and their fellow property owners control.
Overall, the 128 parcels located in the proposed CID district have a total of $118.7 million worth of value. At a millage rate of 3, the CID would collect around $150,000 a year, and at a millage rate of 5, the CID would collect around $240,000 a year.