South Sioux City, Nebraska, approves property tax increase

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SOUTH SIOUX CITY, Nebraska (KTIV)- Property owners, in South Sioux City, Nebraska, will pay more next year to own their property.

Monday night, by a vote of 6-to-0, the South Sioux City City Council approved a plan to raise property taxes, residential and commercial, by 17 percent.

A few years ago, the city was able to add more firefighters to the department, through a grant from the federal government.

Now, the federal government is reducing the grant payment, and City Administrator Lance Hedquist says taxpayers need to help make up for it.

Hedquist says this property tax was anticipated.

But, some residents are upset.

“They’re raising the tax to 17% but they’re also raising the valuation 1.5%, so if you do the math, it’s more than 22% that they originally said they didn’t get approved,” said Mike Klassen, South Sioux City Resident. “They got this grant to pay for the extra firefighters, knowing full well that they had no way to pay for it when the grant was up. They could have raised the valuations or raise the taxes a little bit in the last few years.”

Hedquist disagrees.

He says that’s not the case.

“The actual impact on the individual locations- because we are a growing community, we did have an increase in the valuation of the city because of new construction that’s taken place in the community- when you have new construction that reduces the taxes that the individuals pay,” said South Sioux City Administrator, Lance Hedquist. “So the actual impact to the residence, it will be about a 10 percent increase.”

For example, Hedquist says the owner of a $100,000 home, is paying $210 in property taxes per year.

With the increase, that same homeowner would pay $221 in property taxes per year.

Jennifer Lenzini

Jennifer Lenzini

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