Hendersonville leaders are expected to vote Tuesday to set the city’s property tax rate.
The Board of Mayor and Aldermen voted on first reading June 18 to set the tax rate at 85 cents per $100 of assessed value – up 10 cents from the current property tax rate of 75 cents. They held off on a second and final vote until they received a certified rate from Sumner County Assessor of Property John Isbell.
Isbell, whose office just completed a mass reappraisal of all property in Sumner County, notified the city of its certified rate on Tuesday, Aug. 6.
State law requires that a revenue-neutral certified tax rate be set after each mass reappraisal to prevent local governments from automatically collecting more money in tax revenues because of a reappraisal.
Isbell has set Hendersonville’s certified rate at 59 cents per $100 of assessed value. The county’s new certified tax rate is $1.984.
Residents received their new property valuations in the spring with the average increase at around 31 percent.
“On average the market growth for Hendersonville is 31.45 percent,” said Isbell.
Residents will almost certainly be paying more in both city and county taxes.
In Hendersonville, leaders also voted June 18 to eliminate the city’s $293 annual trash collection fee and roll that amount into the tax rate. They also voted on a $58 million budget that spent $610,000 more than it collected, Interim Finance Director Robert Manning said in June.
Hendersonville Mayor Jamie Clary said on Friday he expects there to be more discussion at Tuesday’s Board of Mayor and Aldermen meeting about whether or not to roll the trash fee into the tax rate or continue to set a separate trash collection fee.
He said that several business owners, who don’t pay the city for trash pick-up, have told him that rolling the fee into the property tax is unfair to them.
The cost of residential trash disposal for the 2020 fiscal year is expected to be $4,533,944, according to Clary.
“If that is going to be covered by property tax, a tax increase of 21.5 cents is needed,” he said. “That will increase our current tax rate of .593 by 36 percent.”
Clary said he doesn't think board members will stick with the 85 cents they voted on at first reading.
If so, residents will see a 44 percent increase.
The city’s Board of Mayor and Aldermen will meet Tuesday, Aug. 13 at 7:30 p.m. at Hendersonville City Hall, 101 Maple Drive North.