It is never popular when local taxes and/or fees are raised. That is especially true in a time of economic recession.
But Chattanooga Mayor Ron Littlefield has raised the possibility that city property taxes will have to be raised -- at a time when there is also the prospect of big charges being imposed in stormwater runoff fees.
Applying additional tax and fee costs to businesses and homeowners is not a cause for celebration by those who have to pay more. But the mayor suggests the city will have to raise more money to finance some delayed needs, provide services resulting from growth and meet other obligations.
Neither higher property taxes nor the stormwater fee is popular. A combination of the two surely will arouse substantial concerns among many people.
The ultimate decisions will be up to the members of the City Council. (Just think, our council members ask for the job by running in competitive elections.)
The amount that our people have to pay in property taxes is calculated by multiplying the "tax rate" (yet to be set) by each $100 of "assessed property value."
Some property valuations have been reduced while some have been increased. The property owners who will be most concerned, of course, are those whose assessed property values have been raised, meaning they will get a higher tax bill even if the tax rate is not raised. If the tax rate is increased, there will be higher tax bills for all property owners except possibly for some whose property values have been reduced.
Most Chattanoogans probably have not yet realized they may face higher property taxes plus stormwater fees in a time of economic recession.
The members of the City Council ultimately will make the decisions about what our people will have to pay.
If taxes and fees go up, there will be some unhappy residents.
The Mayor of Chattanooga is pushing for a substantial tax rate increase this year. He says that we have not had a tax rate increase in 9 years and that is true. A more accurate assessment of city revenues would be to compare the property tax dollars collected in 1991 to the property tax dollars collected in 2009/projected 2010. I think that you will see that the city’s revenue from real property has increased by a huge amount. You and I have to live based on dollars in vs dollars out…we do not have the ability to raise our dollars in, just by voting on it and neither should the city. The city gets much more that a cost of living adjustment every year (i.e. new properties being developed, properties being remodeled, etc.). I know that my tax bills go up on a regular basis and I am paying more in tax dollars today than I did in 1991. My only concern with the media is that a true picture be made available to the residents of Chattanooga. Take a look at the total revenue collected from property taxes in 1991 and compare it to today’s total and you will see what I mean.
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