Lookout Mountain Residents To Be Hit With Possible 5% Property Tax Increase

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The Tennessee Conservative Staff –

Lookout Mountain residents will see an increase in property tax rates to help provide a cushion for a planned paving project.

The certified tax rate for this reappraisal year was initially set at $1.55 for every $100 of assessed property value. After the first reading of a proposed increase, commissioners voted in favor of raising that to $1.63 per $100 of value. This eight-cent raise equals a 5% increase.

According to Mayor Walker Jones, the city needs the revenue from property taxes because there is not significant income from other sources to effectively do what needs to be done.

Lookout Mountain does receive about $75,000 per year in revenue from state gas taxes; however, that money comes with the stipulation that it must be used for road work.

The city has saved that money to be used towards a new paving project. After earmarking an additional $200,000 for the resurfacing last year, that account balance is right at $600,000.

However, officials are concerned that their recent request for proposals may be met with bids that are more costly than they anticipated. The increase in property taxes would help to offset any unexpectedly encountered rise in expenses.

City Manager Brooke Pippenger noted that the city’s budget ended in a good place for this past year, with most departments staying under their individual budgets. She stated that the general fund is currently sitting at around $5 million.

A final reading of the proposed tax increase will take place at the August commissioners’ meeting.