Most people don’t welcome any kind of tax increase at any time. To face a local property tax increase at a time of general economic crisis is particularly unwelcome. But whatever services local government provides must be paid for.
Chattanooga’s Mayor Ron Littlefield recently proposed a city property tax increase of 64 cents for each $100 of assessed property value.
Chattanooga City Council members viewed that with no enthusiasm. So they whittled away at the proposed spending and came up with a suggested tax increase of 37 cents per $100 of assessed property value. That rate was approved by a 5-4 vote.
The 37-cent tax increase will be added to the previous Chattanooga property tax rate of $1.939 tax rate, to make the new property tax rate $2.309.
Chattanooga property owners will have to pay the city’s new rate in addition to the Hamilton County property tax rate of $2.7652 per $100 of assessed property value.
Voting for the 37-cent property tax increase for Chattanooga were City Council members Jack Benson, Carol Berz, Pam Ladd, Manny Rico and Sally Robinson. Voting against were Russell Gilbert, Andrae McGary, Peter Murphy and Deborah Scott.
(The 2009 property tax rates in other Hamilton County municipalities were $1.1227 in East Ridge, $1.1001 in Red Bank, $0.686 in Soddy-Daisy, $1.15 in Collegedale, $1.607 in Ridgeside, $0.24 in Lakesite, $0.43 in Walden, $1.47 in Lookout Mountain and $1.5134 in Signal Mountain — all in addition to Hamilton County’s $2.7652 property tax rate.)
Chattanooga’s new property tax rate is designed to finance $185 million of services for Chattanooga taxpayers.
With City Council members having split 5-4 on the new tax rate, it is obvious the decision was made with difficulty, seeking to balance the cost of necessary and desirable city services with the undesirable necessity of having to pay for them.