More than inflation at play for tax increases
HAMILTON COUNTY, Tenn. (WDEF) – Multiple communities are facing the burden of inflation as they consider their budgets for the upcoming fiscal year.
The City of Collegedale voted Monday night to pass a budget that calls for a 12 percent increase in property tax rates.
This means property tax rates will increase by about 16 cents per every 100 dollars a property is valued.
(MGN)
This comes out to an additional 40 dollars per every $100,000 a property is valued at.
Collegedale Mayor Morty Lloyd says this wasn’t an easy decision but a necessary one to make with increased expenses.
Mayor Lloyd referenced this by listing various items that had increased, “Whether it’s new police cars, new public works trucks, the cost of diesel fuel, gasoline… even the price of basic office suppplies.”
Although inflation is the primary reason for these tax increases, Mayor Lloyd says there are other reasons for the increase.
He particularly cites the repeal of the Hall Tax in 2021, which taxed income made from interest on stocks and bonds as one example of a revenue source that has gone away for smaller communities.
He also cited a recent refusal by the State Legislature to give back a portion of the State Shared Sales Tax to cities.
Mayor Lloyd said, “We, along with other municipal governments in the state of Tennessee feel like it’s fair, not having those sources of revenue really puts a pinch on small municipal governments.”
Collegedale is not the only community facing this problem.
Red Bank is also facing budgetary pressures due to inflation.
Their commission is considering an increase of about 59 cents per 100 dollars, or 54 percent in property tax increase.
In a statement to News 12, Mayor Hollie Berry said the following.
“I have carefully reviewed and considered the budget city staff prepared and presented to our commission for approval. It is my opinion that it strikes an excellent balance of maintaining our current level of service during a time of significant inflation, but beyond that it also ensures our hardworking employees are fairly compensated, meets the most critical needs of each of our city departments, and proactively pursues our five unanimously adopted 2023 Commission goals below:
- Revamp the stormwater ordinance, processes, and fee structure.
- Improve Multi-modal transportation network.
- Develop a comprehensive plan, including fulfilling the land conversion agreement and the former Red Bank Middle School site.
- Create a Red Bank Community Library and Civic Center.
- Develop parks, trails, and recreation services.
(Please refer to this comprehensive budget message if you’re interested in further details)
All the above goals are being accomplished at a cost of about $287 annually to the average Red Bank taxpayer (or just under $24/mo if their taxes are amortized as part of their mortgage), and I am confident the resulting improvement to service delivery will prove an excellent return on investment.
As with any discussion on tax increases there are always those who will be opposed regardless of how the additional revenues are proposed to be invested in their communities. As expected we have received plenty of communications in opposition to a tax increase, but we have also received many encouraging messages from Red Bank residents who want to invest in all the goals listed – staying abreast of inflation, taking good care of our hardworking employees, and pursuing our long term city goals.”
Mayor Lloyd voiced similar sentiments in Collegedale as they say they are working to continue maintaining roads, parks, and increasing public safety.
He said, “We believe that it’s also very, very important to maintain the quality of our city, to maintain the essential services our citizens expect.”
