Don't Freakout Over the Recent Property Reappraisal. It Does Not Raise Your Taxes. However, It is an Opportunity for the Politicians to Raise Your Taxes.

by Rod Williams, May 1, 2025- Property owners in Nashville have received their property reappraisal notices and many are freaking out. Nashville property values skyrocketed 45% in the latest assessment. That, however, does not necessarily mean your property taxes will go up. 

When there is a mass reappraisal, because of Tennessee’s “revenue neutral” property tax requirement, the new reappraisal cannot bring in more revenue than the county received before the reappraisal. Nashville’s total tax revenue must remain the same. So, following the reappraisal, the Metro Council must adopt a new tax rate, called the "certified tax rate." This rate can bring in no more tax revenue than the rate prior to the reappraisal. 

So, if your reappraised value is no more than 45% above the old appraisal, your tax bill should not increase. Some parts of town would realize a tax decrease because some areas increased in value less than the average increase of 45%. If your individual piece of property ends up being taxed more, it could be due to your property appreciating in value more than the average increase in value. That is equalization.

The purpose of a reappraisal is not to bring in more revenue. The purpose is equalization. If someone's property doubled in value and someone else's went up by only 25%, then the reappraisal is to ensure that both property owners pay a property tax reflective of the value of their property. 

What to be aware of is that politicians often use the reappraisal as an opportunity to slip in a tax increase. Often in the year of the reappraisal, the Council will pass the mandated certified tax rate, then the very next item on the agenda is to raise that rate.  So, while the new rate is lower than the rate in effect prior to the reappraisal, it is higher than the certified rate. 

It appears that O'Connell does intend to do what I have described above; proposed a rate lower than the current tax rate, but higher than the certified tax rate. If we end up with a property tax increase it is not the result of the reappraisal but the result of Mayor O'Connell and the Metro Council. 

Top Stories