Most Hendersonville residents will soon be paying more in property taxes, but will likely see an overall decrease in the amount they pay to the city thanks to a vote by the city’s Board of Mayor and Aldermen on Tuesday.
Business owners however, will be paying the city substantially more this year than last year.
BOMA members voted 8 to 5 to set the city’s tax rate at 91.87 cents per $100 of assessed value and eliminate the separate garbage collection fee residents are assessed each year on their property tax bills. Last year’s garbage fee was $293.
Leaders approved the city’s $58 million budget in June, but held off on setting a property tax rate until receiving a certified tax rate from Sumner County Assessor of Property John Isbell after a countywide mass reappraisal his office conducts every five years.
Isbell, who said that on average property valuations in Hendersonville increased by about 31 percent, set the city’s revenue-neutral, certified rate at 59 cents per $100 of assessed value.
By setting the property tax rate at 92 cents, property owners will pay roughly 55 percent more in property taxes. It’s the city’s first property tax hike in four years.
The move means that a homeowner in Hendersonville whose home is appraised at $200,000 will now pay around $459 a year in property taxes. That same homeowner would have been paying $296 at the new certified rate plus an additional $293 – or $589 total - had city leaders not eliminated the trash fee.
The vote came despite opposition from a few business owners and business leaders who said that since they don’t pay the city for garbage collection, a 55 percent property tax increase unfairly burdens them.
Ward 6 Alderman Eddie Roberson said he was afraid the move would have unintended consequences on local business owners and proposed an alternative at tax rate of 79.78 cents and an annual trash collection fee of $141. His proposal failed 3-10.
Ward 4 Alderman Andy Bolt said he hadn’t heard from many business owners who opposed the proposal.
“It is a question of how we place the burden,” said Ward 2 Alderman Scott Sprouse. “At the end of the day the tax rate is going to go down for the majority of the people.”
Those who voted for the new tax rate were Mark Skidmore of Ward 1, Scott Sprouse and Pat Campbell of Ward 2, Arlene Cunningham and Russ Edwards of Ward 3, Andy Bolt and Steve Brown of Ward 4, and Jonathan Hayes of Ward 5.
Sumner County leaders voted on Aug. 19 to raise county property taxes by 17 percent. Residents will begin receiving their property tax bills from both the county and the city in October.