The Cape Girardeau City Council approved, Monday, Dec. 15, the first reading of an ordinance executing an agreement with the City of Cape Girardeau and Scott County for tax collection services.

Finance director Lisa Mills said at the council meeting that through the agreement, Scott County will levy and collect real estate and personal property taxes for properties within city limits and located in Scott County. She added that the ordinance is “simply” an extension of the cooperative agreement.

“This contract is for one year, but it extends automatically, unless we terminate or rewrite the terms,” Mills said at the meeting.

As a part of the agreement, the City agreed to pay the Scott County collector 2% of the total amount of taxes collected by the person for the city. The agreement also states that the city agrees to pay the Scott County clerk 1% of all taxes collected by the county collector.