Image Credit: tnecd.com
Tennessee Conservative News [By Paula Gomes] –
Property owners will get a reduction in property taxes following a vote by the Murfreesboro City Council that lowered the tax rate.
During a meeting last week, council members voted to reduce the previous rate of $0.9526, setting the new rate at $0.7529 per $100 of appraised value.
Rutherford county’s property assessor’s office has reported that property values had increased 26 percent overall within the county.
The state of Tennessee requires that counties adjust property tax rates to remain revenue neutral following a county-wide reappraisal. This Certified Tax Rate process ensures that the total amount of taxes collected within a county remains the same after a reappraisal whether the combined value of all property in the county rises or falls.
Based on a percentage of the fair market value of the property as determined by the assessor of property, a property’s tax bill may change as land and buildings are revalued at least once every six years by January 1st of the county’s “reappraisal year.” Taxpayers have the right to appeal the assessed value of their property after reappraisal.
Receiving a higher value for their property does not mean that taxes will increase for property owners due to certified tax rate law or “truth in taxation” which requires that local governments hold public hearings before adopting a property tax rate that generates more taxes in a reappraisal year than was billed at the lower values of the previous year.
Overwhelmingly, property tax revenue goes toward funding public schools.
Council members also voted to approve the sale of two parcels of city-owned land amounting to just over an acre to Journey Home – serving the county’s homeless population – that sits adjacent to their property for $1 and which will be used primarily for a parking lot.
Other Tennessee property owners are facing increases to their tax bills. Red Bank residents are anticipating a third tax hike in the span of just five years.
Meanwhile, Clarksville City Council finally approved a budget after proposals were rejected four separate times, but in so doing increased the city’s tax rate by 9 cents despite council members cutting funding to several departments to make ends meet.
During the Tennessee General Assembly’s legislative session earlier this year, two bills were proposed to limit how much local governments can increase property taxes.
Conservative Representative Bud Hulsey (R-Kingsport-District 2) filed legislation (HB2607) to cap increases at 2 percent while mandating that a referendum be held should there be a need for additional revenues.
However, both Hulsey’s bill and similar legislation were taken off notice.
Tennessee is one of only four states across the nation that does not have a property tax cap.
About the Author: Paula Gomes is a Tennessee resident and reporter for The Tennessee Conservative. You can reach Paula at paula@tennesseeconservativenews.com.
One Response
Truly a sad commentary that Tennessee is one of only four states across the nation that does not have a property tax cap.
We’re being robbed.