Property tax increase faces final Metro Council vote
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Nashville Mayor Freddie O'Connell's $3.8 billion budget plan, including a sizable property tax increase, faces its final test from the Metro Council on Tuesday night.
Why it matters: No matter how the vote goes, a tax increase is coming. The question is how large.
- O'Connell's plan to raise the property tax rate by about 26.64% has received some political pushback from conservative activist groups.
State of play: Besides more money for schools, O'Connell's plan includes pay raises for city workers and $45 million for affordable housing initiatives.
Driving the news: Details emerged in recent days of two competing budget amendments. Metro Councilmember Delishia Porterfield, who chairs the budget and finance committee, proposed an alternative budget that doesn't change the property tax rate.
- Porterfield proposes to use money from existing fund balances to pay for higher employee raises, investments in youth programs and what she calls "critical support services" such as food assistance, maternal health programs and youth shelters.
- Historically, the budget chair's plan, which tweaks the mayor's budget, is the one approved by council.
- "We've listened to our residents, community organizations, and Metro departments to ensure that this budget reflects both our city's immediate needs and long-term goals," Porterfield said.
The other side: Metro Councilmember Courtney Johnston pitches an alternative budget that would reduce the proposed combined tax increase from 26.64% to 19%.
- To achieve this, Johnston proposes lowering the budget increases, especially to Metro Nashville Public Schools. O'Connell's budget includes an approximately $132 million increase to MNPS, but Johnston seeks to lower that to $77 million. She also proposes sending less money to a newly created city savings account.
- "The mayor and the budget chair's proposed tax increase is incredibly steep and too burdensome -- especially for hard-working families, elderly residents and our small businesses," she said.
Flashback: Metro has raised taxes infrequently this century. Since 2005, there have been just two increases. The last one in 2020 was the largest increase in Metro history at 34%.
Between the lines: The impact of the tax hike would not be uniform. A homeowner's tax increase would be contingent on how much their home's value increased in the recently completed property appraisal process.
- Here's a tutorial for how to figure out your tax bill. Johnston's proposed rate is $2.646