Is there ever a time when it would be popular to have a tax increase? Well, in this current time of general economic pinch, when there is nearly 10 percent unemployment, it is certainly not a time when our people in general would welcome an increase in any of our taxes, especially taxes on their property.
Yet there are some reports that a Chattanooga property tax increase may be under consideration.
It is not a timely idea.
The Chattanooga property tax rate now is $1.939 per $100 of assessed property evaluation. That the rate has not been raised for nearly a decade is not a good reason to raise it now. Increases in city revenue should be covered by new property development, on which the tax rate is applied, not by increasing the tax rate.
The Hamilton County tax rate, which Chattanooga residents also have to pay, is $2.7652 per $100 of assessed value. Adding city and county property tax rates together provides a substantial burden of $4.7042 per $100 of assessed property value.
Local governments and local citizens may always find some “needs” that would be desirable to meet. But the undesirability of a property tax rate increase, especially in a time of recession, indicates this is not a time to increase the tax burden on our residents’ homes and our businesses.