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Article by Olivia Lupia, Tennessee Conservative News –
Nearly three dozen Nashville property owners appealed their valuations to the Metro Board of Equalization on Tuesday, including 30 small businesses who say their property tax bills have skyrocketed and prompting some owners to declare that they may have to shut their doors permanently if they do not find some relief.
According to the Metro Board’s agenda, four residential properties were scheduled to bring their appeals with the remainder of the list comprised of 30 commercial properties, most of which were likely local businesses.
One business present, Acme Feed & Seed, made national headlines earlier this year when owner Tom Morales announced the property taxes for the parcel had jumped from $129,000 per year to $600,000. Representing nearly a half-million dollar increase in just one year, Morales said the extraordinary jump was “more than our rent and net profit combined. We can’t pay it. It’s punitive.”
The historic Feed & Seed isn’t the only business facing these astronomical increases. Two other examples include Kid Rock’s Honky Tonk, which saw an increase from a $13 million valuation in 2021 to $60 million this year, and Ole Red, which jumped from $16 million appraisal in 2021 to $67 million. With both venues’ valuations skyrocketing by over 400%, the accompanying property taxes would be equivalently drastic.
Those owners appealing their appraisals are hoping a new system might be able to better distinguish between types of businesses or make a specific differentiation for historic buildings.
“Maybe instead of a regressive, punitive tax, because somebody can build a 30-story tower and we get the same evaluation and we’re a historic building, that there’ll be a differentiation,” Morales said. “Not one size fits all.”
And the Broadway Entertainment Association appears to agree, with Rob Mortenson saying, “We don’t want to go down Broadway and see a Starbucks, see a McDonald’s. And that’s what it’s going to become because the only people that will be able to afford to be on Broadway is somebody who doesn’t care if they make money on Broadway.”
However, Nashville Mayor Freddie O’Connell maintains that the property tax rate has been set as the lowest in the city’s history and has incentives to help small businesses.
“There’s nothing different about this moment than has happened across the history of the city except this appraisal after a period of our last appraisal occurring right after COVID seems to have been steeper across the board,” he said. O’Connell also opposes any potential property tax caps the legislature may implement, saying it would be a “disaster” for city services.
Meanwhile, state lawmakers appear poised to tackle the subject either via a special session ahead of the regular legislative session or in January 2027 when the General Assembly will officially reconvene, despite failing to pass legislation on the issue during this year’s session where two separate proposals were filed.
“I think it’s a number one [priority], it protects taxpayers as a bipartisan issue,” said House Speaker Cameron Sexton. “Republicans, Democrats, independents, all feel like that they want it. They want some security that they can only be raised so much. And it forces the governments, the local governments, to actually address the needs now, not punt it to 10 to 20 years down the road.”
Property tax caps have become a top issue for homeowners and businessowners alike in Tennessee, especially as a report from the Beacon Center showed the Volunteer State leading the nation in property tax hikes, with an average increase of at least 75% over the past six years.
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About the Author: Olivia Lupia is a political refugee from Colorado who now calls Tennessee home. A proud follower of Christ, she views all political happenings through a Biblical lens and aims to utilize her knowledge and experience to educate and equip others. Olivia is an outspoken conservative who has run for local office, managed campaigns, and been highly involved with state & local GOPs, state legislatures, and other grassroots organizations and movements. Olivia can be reached at olivia@tennesseeconservativenews.com.
