The Centralia City Council Monday night, will consider adopting a half-cent Non-Home Rule Municipal Occupation Tax. It will bring the sales tax rate up to a full one percent as allowed by the state government. The half-percent increase is expected to bring in approximately $929,000 in new revenues each year.
Centralia City Manager Galen Mahle says if passed, this will bring the city’s local sales tax rate to 7.25 percent in both Washington and Clinton Counties, with an 8.25-percent rate in the Jolliff Bridge Business District. The rate in Jefferson County will be 7.75 percent. In Marion County, it will jump to 8.5 percent as it includes both the one percent school facilities tax and quarter-cent county public safety tax.
If passed, Centralia will have the same sales tax as Salem, excluding its business district, at 8.5 percent. Centralia’s rate will be significantly lower than the current 9.5 percent in Mt. Vernon but higher than Carlyle’s 8 percent and Nashville’s 6.25 percent.
Mahle says there are many reasons for the increased rate. First off, it will offset the decrease in replacement and use taxes, which have decreased approximately $1.27 million since 2022. Furthermore, it will allow the city to maintain its current property tax levy. And finally, it will allow the city to meet increasing costs. Significant cost increases are expected with the city’s health and property insurance. Union negotiations are also ongoing which will bring increased personnel costs as well.
Mahle says the goal is to avoid raising taxes, but if this passes, Centralia’s rates will remain competitive with neighboring communities. It will also help keep the city’s property tax levy low by shifting some of the financial burden from only homeowners to include visitors and non-residents, ensuring everyone who benefits from the city helps support its upkeep and progress.
The council will also consider four ordinances to declare four parcels of real estate surplus and seek bids to sell them. The parcels are at 435 South Hickory, 1335 South Locust, 615 North Hickory, and 926 North Poplar.
A $96,800 bid from J.K. Trotter and Sons for lead service line inventory will be considered.
A service award will be presented to recognize Fire Department Lieutenant Andrew Sneddon for 25 years of service.
The Centralia City Council meeting begins at six at Centralia City Hall.
