State’s Fastest Growing County Raises Property Taxes In Biggest Hike Residents Have Seen Since The 90s

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The Tennessee Conservative [By Paula Gomes] –

The fastest growing county in Tennessee is raising property taxes in the biggest hike residents have seen in nearly three decades. The Rutherford County Commission voted 13-8 in favor of the Mayor’s recommendation on Monday which will fund the county’s $849.8 million budget.

The last time property taxes were raised significantly in Rutherford County was in 1994. The county is currently ranked as the 42nd fastest growing in the whole of the United States.

The tax increase of 16% was proposed by first year County Mayor Joe Carr after the Tennessee General Assembly voted against an impact fee of up to $5,000 on new residential construction within the county. Carr has said the tax hike is the county’s best option in dealing with its deficit of over $64 million.

In a live Q&A on social media, Carr said that being allowed to collect impact fees would have leveled the playing field with other counties such as Dickson, Wilson and Williamson. Since 2006, Rutherford County has been confined to either a pre-existing development tax, capped at $1,500, or moving over to an Adequate Facilities Tax which they did around two and a half years ago.

“Right now the Adequate Facilities Tax is tapped at $1.00 per square foot. So if the average home is 2,500 square feet, that’s $2,500 in Adequate Facilities Tax,” said Carr. “Currently, it costs $9,700 a year to educate every new student. We have 1,500 new students coming into the school system every year. So you can see we’re upside down already.”

As a result of the deficit, all departments within Rutherford County’s government have been held to last year’s budget, except for pensions and insurance. 

Carr stressed the importance of taking care of the deficit so as not to jeopardize the county’s AAA bond rating. Without it, the county would have difficulty borrowing money for building new schools, something of utmost importance with 1,500 new students entering the county’s public schools each year due to an average of 10,000 new residents moving into Rutherford County yearly.

With the increase in new residents every year, comes increased expansion of services, not just for schools but also for first responders, and solid waste pickup.

“The reason why we’re in this $64 billion deficit is because we have kicked, we Rutherford County, have kicked the can of growth down the road so many times, so many years that has accumulated. And so now here we are in 2023 with an over $64 million deficit and we just can’t afford to kick that can down the road anymore,” said Carr. “So we’re going to have to deal with it the only way we have to deal with it because the Tennessee General Assembly has said this is the only way you’re going to deal with it, is to raise property taxes. And so unfortunately, that’s where we’re at.”

Carr has said that the county will need to get state lawmakers on board with protecting retirees in the county so they don’t get priced out.

At the same time, Carr – who calls himself fiscally conservative – says that the county is being “very efficient, we’re being very cost effective.” To avoid having to raise taxes again in the near future, the county is reviewing how they handle building permits and building fees and assessing if they are in line with neighboring counties. A moratorium on new residential construction is even being considered.

Despite the tax increase, Carr says that Rutherford County will still have the lowest property tax rate per thousand of any county in Middle Tennessee, going from $1.61 to $1.87. Williamson County is currently at $1.88, Wilson County is $1.91, Maury County is $2.23, Sumner County is $2.62, and Davidson County is $2.92.

Watch the Q&A with Rutherford County Mayor Joe Carr below:

About the Author: Paula Gomes is a Tennessee resident and reporter for The Tennessee Conservative. You can reach Paula at paula@tennesseeconservativenews.com.