To help offset the economic damage brought on by the coronavirus pandemic, the mayor of Nashville proposed raising property taxes 32% in the 2021 city budget.
The Tennessean reported Tuesday that Mayor John Cooper’s $2.44 billion proposal is $115 million more than the city’s current budget and includes a 31.7% increase in property taxes. Most of the new revenue would go to replenish resources that have shrunk in the wake of multiple emergencies the city has faced.
In addition to the impact the pandemic has caused nationally, Tennessee suffered a disastrous tornado outbreak in March that ran through the middle of the state. The storm left at least 25 people dead and hundreds injured and caused $1.5 billion-$2 billion in damages, according to AccuWeather, a media site focusing on weather forecasting services.
Cooper, a Democrat, also urged substantial cuts across several city services and said that schools would see a flat budget allocation despite districts demanding increased funds to meet educational needs. The mayor defended his proposal of a major property tax hike, suggesting the alternative would be to have mass layoffs of city employees.
The Tennessean reported that city officials expect the coronavirus pandemic alone to lead to a revenue loss of $470 million over a 16-month period, and the federal aid received following the March tornado was not enough to close the financial gap.
Nashville has not seen a tax increase since 2012, and the mayor’s proposal would lift property tax rates by $1. For a home appraised at $250,000, it would be an increase of roughly $625 per year. The city’s deadline to approve next year’s budget is June 30, with the new fiscal year beginning July 1.
