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…]