HENDERSONVILLE, Tenn. (WTVF) — Rent increases could affect your wallet in Sumner County after a change in how the county views rental properties.
Danny Hale is speaking about his concerns regarding his rental house in Sumner County, which has remained largely unchanged since its construction.
"Been the same since 1968 when it was built," said Hale.
Hale is a property manager with Halo Realty. He also works in real estate sales and commercial development, but he owns homes himself.
Hale first noticed a large increase in property taxes in May when he received the assessment for his rental property.
When asked if he had seen similar increases elsewhere, Hale was clear.
"No, this is the only county we have seen this in, and we manage properties in almost every county in Middle Tennessee," said Hale.
The current Sumner County property assessor, John Hurt, said the previous assessor decided to view rental homes differently, treating them more like commercial businesses.
In Tennessee property is classified by its use for assessment purposes. The previous Assessor, Don Linville, made the decision to classify income producing single family rentals as commercial and assess them at the 40% commercial rate in tax year 2024. These properties are not owner occupied and are being used as an income producing business by the owner/taxpayer. There are appeals for tax year 2024 regarding the classification that will be heard by a Judge later this year. The Court will determine if income producing single family rentals should be assessed at the more favorable assessment rate of 25% than other income producing properties that are assessed at 40%. Property owners may appeal their property classification to the Sumner County Board of Equalization. The deadline to sign up for the board is June 13th.
That distinction matters significantly because it changes how much of each home is taxed. The county taxes only 25% of the value of a residential home but taxes 40% of the value of a commercial property.
Under the new interpretation, homeowners who rent out two or more homes through a company called an LLC are considered commercial properties.
"This is strictly one man's opinion of how various properties should be assessed," said Hale.
The decision affects people like Hale who own rental homes.
"Without action by the county commission, he's essentially created a tax increase," said Hale.
Hale said he never wants to raise rent unless absolutely necessary, but the financial reality is concerning.
"On a typical home like this one in Sumner County, taxes will go up about $100 per month," said Hale.
Which means renters ultimately end up paying for that increased cost.
"The people renting homes can be some of the most vulnerable in our communities. To pass those costs onto them seems like a fight worth taking," said Hale.
Hale has appealed to keep costs the same and said he won't leave without a fight.
Right now, the county's Board of Equalization is set to review appeals. If you want to appeal, time's running short the deadline is today. Click here for more information about the appeals process.
Are you a Sumner County renter concerned about potential rent increases? Or a property owner affected by this tax assessment change? Share your story on how this policy is impacting local families. Email Kim.Rafferty@NewsChannel5.com to have your voice heard in our continuing coverage.
This story was reported by Kim Rafferty and has been converted to this platform with the assistance of AI. Kim and our editorial team verifies all reporting on all platforms for fairness and accuracy.
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