by Rod Williams, March 8, 2026- The mayor is flat-out saying something that is not true. He is smart enough to know it is not true. He knows how property taxes are calculated.
An increase in property value does not increase the amount of property tax you pay. Let us look at an example:
Assume you have a house valued at $300,000. Residential property is assessed at 25%, so the Assessed value is $300 000 x 25%= $7500. Then for each hundred dollars of assessment (750) you apply the tax rate, which is $2.814 per $100 of assessed value for the Urban Services District of Nashville. So, your tax bill would be 750 x $2.814 = $2,110.5.
Now, let us assume your property increases in value to $600,000, but also assume all other properties increase in value and this is reflected in the reappraisal. State law requires that, following a reappraisal, the tax rate must be lowered so that there is no increase in tax revenue for the city. A reappraisal is not for the purpose of increasing tax revenue but to ensure fairness and equity in the property tax system by updating property values to reflect their current fair market value. Because real estate market values change over time, with some areas growing faster than others, the periodic reappraisals ensure that property owners pay taxes based on accurate, current data rather than outdated, inequitable values.
After the appraisal is complete, the city must then pass a "Certified Tax Rate." This 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.
So let us assume that due to increases in property values, the amount of taxes the city would collect if not for the certified tax rate would double, so the certified tax rate must be cut in half. So, $2.814 x 50%= $1.407. That would be the new tax rate.
Let us assume your home increased in value from $300, 0000 to $600,000. Let us calculate your taxes: ($600,000 x 25%) ÷100 x $1.407= $2110.5
Your tax bill does not change. In reality, what happens is that following the appraisal, the mayor will propose and the Council will pass a new tax rate to bring in more revenue. Most often, the Council will pass the Certified Tax Rate, and then the very next vote will pass a new tax rate higher than the certified tax rate.
So let us assume the Council passes the Certified Tax Rate and then immediately passes another bill setting the tax rate at $2.00. Your tax bill would be thus: ($600,000 x 25%) ÷100 x $2.00= $3,000. Your taxes went up from the $2110 you were paying to $3,000. Most will blame it on the increase in property values as reflected in the apprasial and the mayor and the Council may even brag about cutting the tax rate. The truth is, it was not the increase in property values that caused your property bill to increase but the actions of your elected officials.
The mayor knows this. It can be a little more complex than this because different types or properties are assessed at different rates and perhaps, to be generous, the mayor was simply inarticulate, or the quote above was taken out of context. However, I have seen him say something similar elsewhere. I think he is intentionally trying to mislead.
It is time to cap property taxes. It is also time to elect a mayor and a Metro Council that will stop imposing higher taxes and be honest and not try to blame increased property taxes on increased property values.
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