The regular property reappraisal is for the purpose of equalization. Take for example, that you live in an established neighborhood of older, established homes. Assume lots of homes in your neighborhood get added on to, beautified, freshly painted and updated, and you do not do that to your home. You should not be paying the same taxes as your neighbor. The reappraisal values your home at market value, so the neighbor who improved their home pays more property taxes than you do.
Or, consider that you live in a home of a certain age, size, and condition in one part of town and your friend lives in a similar home in another part of town. Assume that since the last appraisal, your friend's neighborhood has become very trendy and more expensive. He should pay more taxes than you do because his property is more valuable, even though he did nothing to make it more valuable.
After the reappraisal, your property should go up in value only if it has increased more than the average home. It should go down if it increases less in value than the average home. This is the law. The Tennessee Certified Tax Rate process is designed to ensure “truth-in-taxation” following a county-wide reappraisal. The process ensures the amount of total taxes collected for a county remains the same after a reappraisal, even if the combined value of all property in the county rose or fell following the reappraisal. Let me quote the law:
TN Code § 67-5-1701 (2025)
(a) (1) Upon a general reappraisal of property as determined by the state board of equalization, the county assessor of property shall certify to the governing bodies of the county and of each municipality within the county the total assessed value of taxable property within the jurisdiction of each governing body.
(2) The assessor shall also furnish each governing body an estimate of the total assessed value of all new construction and improvements not included on the previous assessment roll and the assessed value of deletions from the previous assessment roll.
(3) Exclusive of such new construction, improvements and deletions, each governing body, in the event of a general reappraisal as determined by the state board, shall determine and certify a tax rate which will provide the same ad valorem revenue for that jurisdiction as was levied during the previous year.
(4) For the purpose of calculating the certified rate, the governing body shall use the taxable value appearing on the roll exclusive of taxable value of properties appearing for the first time on the assessment roll. The governing body may also exclude from the taxable value appearing on the roll:
(A) The taxable value of properties subject to tax increment financing provisions adopted by the governing body pursuant to title 13, chapter 20, part 2; and
(B) The taxable value of properties within an area for which an economic impact plan has been approved by the governing body pursuant to § 7-53-312 or § 7-53-314.
(5) In calculating the certified tax rate, the governing body of the county or municipality may adjust the calculation, according to a method approved by the state board of equalization, to reflect extraordinary assessment changes anticipated from appeals to the state or local boards of equalization. The state board of equalization shall order recapture of an excessive adjustment in the following year if the certified tax rate is found to have been overstated due to overestimation of the appeals adjustment, and in these cases the jurisdiction may exceed the recapture rate only after public hearing.
So, why do most of us get a tax increase after a reappraisal? This is what normally happens. Following the finalization of the mass reappraisal, the new certified tax rate is calculated. Since property values increase, the new certified tax rate, which is lower than the current tax rate, is passed by the Council. Then, in almost all cases, the very next order of business is to pass a bill establishing a new tax rate that is higher than the certified tax rate that the Council has just passed. The Metro Council has chosen to set tax rates above the state‑required “revenue‑neutral” level.
Politicians who just raised your taxes will blame the tax increase on the reappraisal. They know better. They may also defend the increase in taxes by saying the tax rate is lower than last year's tax rate. That is irrelevant; they raised your taxes. What I would like to see happen is for a state law to be passed prohibiting a local government from raising the tax rates in a year in which the certified tax rate is adopted. That would be real "truth-in taxation."
The Pamphleteer has created a tax calculator tool that shows you how much of any tax increase you may have experienced is due to the reappraisal and how much is due to the city choosing to raise taxes. Below are the results for my home. Notice that the reappraisal would have lowered my tax bill by $157. Instead, I had a property tax increase of $825, all due to the Council's new tax rate.
To use this handy tool, follow this link.
Your property tax went up
Your increase is entirely the Council's rate hike — the reappraisal alone would have lowered your bill.
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