Chattanooga’s city councilmembers are at odds over a 28.4 percent property tax increase that would raise approximately $50 million.
While all councilmembers are in agreement that the final budget include meaningful pay increases for the city’s firefighters and police department, some want to rework the current budget to find the money rather than raise rates on property owners.
Mayor Tim Kelly’s administration has offered up a supplemental budget proposal that includes a 44-cent property tax increase amounting to an extra $449 in payments on a median-sized home.
According to officials, the increase from the rollback Certified Tax Rate would not only fund significant raises for police and fire departments but also lowers the property tax rate from $2.25 to $1.99 per $100 of assessed value. Approval of the proposed rate would allow the city to keep pace with 22.5 percent inflation while also providing the largest decrease in Chattanooga’s property tax in decades.
