Oak Ridge Today

Roane reappraisals show 3.47 percent assessment drop; OR tax rate calculated at $2.52

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Jason Mumpower

Jason Mumpower

Note: This story was last updated at 5 p.m.

Roane County properties showed an overall 3.47 percent drop in assessed values in the five-year reappraisal process taken over by state officials this year, and the tax-neutral property tax rate in the City of Oak Ridge has been calculated at $2.52, the Tennessee Comptroller’s Office announced Thursday.

The tax-neutral rate is up from the current $2.39 per $100 of assessed value, a 13-cent increase.

Separately, the Oak Ridge City Council has been asked to consider a tax rate increase of up to eight cents, with a one-cent increase requested by the municipal staff and a seven-cent increase requested by the Oak Ridge Board of Education. The one-cent increase would help maintain city services and allow for a 2 percent pay raise for city employees, and the seven-cent increase would help cover a deficit and add money for salaries and staff, including a 3 percent pay raise.

Any tax increase, if approved by city officials, would be in addition to the tax-neutral rate calculated by the state. Each additional cent on the property tax rate generates about another $90,000 in revenue. A one-cent increase would cost the owner of a $145,000 house another $3.63 per year. An eight-cent increase could cost that homeowner another $29 per year. [Read more…]

Anderson County reappraisal shows overall 4 percent drop in total assessments

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John K. Alley Jr.

John K. Alley Jr.

By Anderson County Property Assessor’s Office

The 2015 reappraisal in Anderson County shows an overall drop in total assessments.

“In the past, values have always increased,” Anderson County Property Assessor John K. Alley Jr. said. “I promised a fair and accurate assessment for Anderson County, and I feel that is what I have delivered to the property owners.”

The primary purpose of this article is to explain the reappraisal process and set the guidelines for making an appeal, if desired.

2015 is a reappraisal year for Anderson County. [Read more…]

Guest column: Next six-month challenges in Roane County

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Ron Woody

Ron Woody

By Ron Woody, writing in the January 2015 “County Executive’s Newsletter to the County Commission”

“Next Six Month Challenges”

As we begin the next calendar year, we thought it would be appropriate to identify some challenges which will come before commission in the next six months. As always, the beginning of the calendar year starts the annual budget process. Commission has made many major steps over the last number of years in establishing a more formal budget development process as budget focus has been divided into operating budgets and capital budget. We are not to the point we should be yet in both funding and understanding, but much as been accomplished and that I call a success.

Now to our six-month challenges:

  1. More deployment of capital budget. We plan on working on this in February and March. The questions to be answered are: Are we setting aside enough funds for replacement of our assets? Where do these set-aside funds come from and how do we protect these funds from competing services?
  2. Insuring that the county has a successful reappraisal program which includes not only accurate value but an understanding of the reappraisal impact.
  3. Funding of operational budgets which are either strained (general government) or suffering major loses (schools).
  4. Educational plans of capital improvements and related funding whether consolidation of schools are considered or not.

[Read more…]

Guest column: Trying to set the record straight on the property tax rate

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Online comments by local citizens in response to some recent guest columns about city and county budgets and taxes have revealed some mistaken notions about the way property tax rates are established in Tennessee cities and counties. I want to set the record straight regarding a couple of misconceptions about property tax that I see being spread in recent public discussions.

On the Oak Ridge Today website, citizen Andrew Howe posted a comment saying:

“The property tax rate should NEVER have to increase. It is basically a percentage of the value of the home, right? And if the value of the home rises (as it should, in line with the cost of living), then the taxes will also rise.”

I can’t quarrel with Mr. Howe’s logic, but his conclusions are wrong. This is because he makes an assumption that is valid in many states but isn’t valid in Tennessee.

Under Tennessee law, when properties are reappraised, state officials calculate—and publicize—the property tax rate that will give the local government the same total amount of property tax that it was getting from existing properties before the reappraisal. (This calculated rate is called the “certified tax rate.”) That’s the new baseline tax rate. If a local government in Tennessee wants to get more property tax revenue after a reappraisal, the governing body has to vote to increase the tax rate above the certified rate. [Read more…]