Auditors for the city of Red Bank recently discovered Hamilton County Property Assessor Marty Haynes’ office miscalculated the city’s certified property tax rate, and the error will result in a revenue shortfall of nearly $800,000 for the municipality in the 2025-26 fiscal year that began July 1.
Hamilton County reassesses property values every four years, and the most recent reassessment was conducted earlier this year.
To keep governments from getting a windfall when property values rise, municipal tax rates are supposed to be recalculated to be “revenue neutral,” or set so that cities get the same amount of revenue despite the higher home values.
Total property taxes billed the previous calendar year are used to establish the benchmark for “neutral,” Red Bank City Manager Martin Granum said at a meeting Tuesday called to discuss the error.
Updated property assessments are provided by the Assessor’s Office to local governments to establish the total taxable property base.