Residents in the Town of Smithtown say they're planning a rally to oppose a proposed 9% property tax hike that's on the table.

“A lot of places going out of business," Smithtown resident Richie Ellis said. "Taxes are going up. It’s ridiculous. People can’t afford anything anymore.”

If approved, the average tax bill would go up $160 a year, according to the tentative budget.

"It's not good," Smithtown resident Geri Williams said. "I mean, things are expensive. You go to the supermarket, everything is up."

In a letter to the town board and residents, Smithtown Town Supervisor Ed Wehrheim said, "This is not a recommendation made lightly."

Wehrheim said skyrocketing healthcare premiums, retirement contributions, insurance costs and inflation left the town with a $7.1 million shortfall for the next fiscal year. Town officials warn they'll have to cut at least 40 full-time jobs and reduce services like senior center programs, youth initiatives, community concerts, hazardous waste disposal and seasonal brush collection to remain under the cap.

Wehrheim was unavailable for an interview today and instead referred News 12 to a statement: "The recent rally over the proposed tax cap adjustment is political posturing by opponents in the upcoming local election that ignores the facts.  The Town is facing two difficult options: a 9% increase—about $3 a week—to cover a $7 million shortfall caused by state mandates, or deep cuts that would eliminate more than 40 full-time employees and vital programs thousands of families rely on. Smithtown has never pierced the cap before, even when 11 out of 13 Long Island towns were forced to last year. But the reality is we do not receive State aid (like school districts do) to offset these unfunded mandates. And without fair state funding for local governments, meeting these mandates with 11 cents on the dollar is unsustainable."

The Smithtown Democrats are leading today's rally outside Smithtown Town Hall at 2 p.m., but party chair Phyllis Hart said the event is not about politics, but people.

"It doesn't matter if you're a Democrat or a Republican, piercing the tax cap in this environment is serious," she said. "There are people who are struggling in this town and we need to look out for those people too."

A total of 11 of Long Island's 13 towns raised taxes for the current fiscal year, but Smithtown was not one of them. Each who did claimed similar reasons: inflation and the rising costs of maintaining services.

The next regularly scheduled Smithtown town board meeting, which will include a budget hearing, is set for Tuesday, Nov. 4, at 7 p.m.