May 25, 2021
The proposed amendment to the Metro Charter, which is currently slated for a special election on July 27, would not bring residents much relief on property taxes in the near future, critics say.
The property tax portion of the proposal, which would fundamentally revise the way the Metro government works, aims to bring the property tax rate down to its pre-record level of 34 percent last year. The residential property tax rate for most residents prior to the increase was $ 3.155 per $ 100 of the estimated value.
Since Davidson County is in a revaluation year, the property tax rate should be reset as part of the Metro’s upcoming operating budget process. State law prevents local governments from suffering a godsend as a result of the revaluation.
This means that the property tax rate will be reduced in proportion to the average national increase. The new tax rate under the budget proposed by Nashville Mayor John Cooper would be $ 3.28 per $ 100 of estimated value.
We have the challenges that growing cities have in terms of housing and affordability. This referendum does not help with these problems, it would only make them more difficult to resolve. – Jason Freeman, SEIU Local 205
Even if the tax-free portion of the referendum were approved, property owners would see a 3.8 percent reduction. Zillow.com lists median home sales at $ 330,757. For the median home value, the property tax savings would be about $ 110 per year (the difference between a tax charge of $ 2,718.82 below the current rate or $ 2,608.85 below the rate proposed by 4 Good Government).
Jason Freeman, political director of service workers union SEIU Local 205, which opposes the referendum, said the proposal to amend the charter was misleading to voters.
“We have the housing and affordability challenges growing cities are facing,” Freeman said. “This referendum doesn’t help with these problems, it would just make them more difficult to resolve.”
The property tax change includes another provision that would require voter approval for a proposed increase of more than 3% in the future. While the proposal would hardly result in tax breaks this year, it would force city guides to advocate the need for larger increases in the future.
There is already a provision in the charter that was passed by voters in 2006 that requires voter approval for any proposed increase that would raise the rate above $ 4.69 per $ 100 of estimated value – the rate at the time of this referendum, which was promoted by anti-tax activist Ben Cunningham.
At the time of this proposal’s review, Metro’s then attorney Sue Cain was drafting a legal opinion stating that the state constitution gives local governments broad tax powers. Cain argued that the 2006 referendum, which capped the rate at $ 4.69 without voters’ approval, was illegal and likely to be crushed by the courts.
But Metro has never come close to a spike since then that would bring the rate above $ 4.69, so the issue has been moot until now.
Metro lawyers filed a lawsuit informing Cain in their memo that the anti-tax provision in the 4 Good Government proposal is unconstitutional and should therefore be discarded.
There is also the question of timing. The Metro Council must approve a budget in time for it to take effect before July 1, the start of the new fiscal year. With the referendum taking place 26 days after the new budget comes into force, there is also a legal battle over whether the proposal can be implemented even if it is passed.
Republican-appointed members of the Davidson County Election Commission voted in favor of the election on July 27, the earliest date proposed by commission staff for the anti-tax change to take effect if approved by voters becomes .
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