NASHVILLE, Tenn. (WTVF) — Under Mayor John Cooper's proposed property tax rate, the city's equalized rate will be the third-lowest of all time in all of Metro's history - $3.28.
However, even if that low proposed rate passes, it does not necessarily mean homeowners will save any money. State law requires anytime that property values go up, the tax rate must come down. And needless to say, Nashville's market is hot.
"Our new tax rate is more than one dollar less than our own average rate over the last 25 years," Mayor Cooper said during his State of Metro address.
Council Member Freddie O'Connell says while the tax rate can change annually, it historically only changes when the appraisal is done every four years.
As you can see above, the rate in 2017 didn't last. Critics say the rate was too low for Nashville to service itself, especially in a pandemic. With that in mind, council members say before they approve this new low tax rate, they want answers.
"This is going to be one of my biggest questions. We tried this four years ago. It proved unsustainable," said Freddie O'Connell. "Last year's property tax rate increase should have allowed Metro to capture revenue that we did not capture over the previous three years the question is, is it enough. Did we stabilize enough in that rate increase?"
Metro Council has until June 30 to approve a new budget and tax rate.