Davidson County, Tennessee could be facing significant property tax increases in the future.
Residents of Nashville and other cities in the county could be asked to pay higher property taxes in the future. That’s because other sources of revenue the county has typically relied upon to fund operations may not be available in the future.
One of the largest sources that Davidson County cities look to for funding is the Hall Tax.
Named for the senator who originally introduced this legislation in 1929, this tax is imposed on bond interest and dividends.
Tennessee collected $172 million from the Hall Income Tax last year and about $62 million of that was sent back to counties and cities where the residents who paid the tax live.
Now state legislators are again proposing the elimination of the Hall income tax.
While eliminating the tax has been proposed by various legislators on an annual basis, the overwhelming Republican majorities in both chambers of the state legislature lead many to believe that efforts to eliminate the tax has a much higher chance of success this year.
Cities across Davidson County are concerned about this development because the Hall income tax covers large portions of the annual budget. Brentwood gets about $2 million per year from the tax. Other more affluent cities such as Belle Meade use Hall income tax revenues to fund an even larger portion of the budget.
If legislation to phase out the tax by 2015 is successful, other revenue sources to make up the difference would have to be found across Davidson County.
That’s one of the reasons why massive increases in Davison County property taxes could be just around the corner.
Another issue Davidson County continues to wrestle with is lost property tax revenues from more than 10,000 properties that were damaged during the floods of last year. Owners of those properties will pay much lower property taxes until it their homes and businesses are ready to be occupied again.
Don’t wait around for higher property taxes in Davidson County. Use ValueAppeal to challenge your property tax assessment today.
For more (county) property tax information, click here.