Property owners prepare for Nashville’s 34% tax increase

Local News

NASHVILLE, Tenn. (WKRN) — Davidson County property owners will need to prepare for a higher tax bill after the Metro Council gave final approval to next year’s budget.

The final vote for the plan, which includes a 34% property tax increase, was 32 in favor and eight against.

One of the eight council members voted against the increase approved by the Council is Russ Pulley, who told News 2 he knew some kind of property tax was expected.

However, home and business owners are trying to make ends meet in what has already been a very difficult year.

Nashville Mayor John Cooper said he would not have considered an increase this large if Nashville was not facing record financial challenges.

But this is exactly why critics say they can’t afford to pay thousands in additional taxes.

Tornado recovery and COVID-19 played a major role in Councilman Pulley’s vote against the budget.

“We did, in fairness, it did need some sort of adjustment, I just thought it was too high at a time when people got really hit, when the pandemic hit that kind of shifted my thinking. I think it shifted the thinking of a lot of council members, we all knew that a reasonable increase was in store for us, it’s just that this was awfully difficult to bear for a number of people,” explained Pulley.

MORE: Petition seeks to recall new 34% property tax hike in Metro Nashville

Taxes will go up based on the value of your home. Using the Davidson County Property Assessor’s formula, a home assessed at $200,000 would pay just over $500. A home valued at $350,00 would see a $930 increase and a home worth $600,000 would have a $1,600 increase.

“What I have seen is small businesses were hit very hard when they were shut down, many I know closed, many in anticipation of this tax increase, I know people left Nashville. I know personally some businesses that pulled out of here and moved to other cities. I don’t know how large the numbers are, I know of personal examples of that happening,” said Pulley.

Grassroots organization No Tax 4 Nash is petitioning to recall the 34% increase. The group needs 68,000 signatures by the end of the month for Mayor Cooper to review.

The new tax rate goes into effect next month. Commercial property is taxed at a higher rate than residential property.

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