Tuesday evening, the Knoxville City Council approved Mayor Madeline Rogero's city budget for fiscal year 2014-2015, which begins in July. The budget includes a 34-cent property tax increase, the first property tax increase the city has seen in 10 years, when Gov. Bill Haslam was the mayor.
Knoxville's property tax rate previously stood at $2.3857 per $100 of assessed value. The next tax bill city residents see will have a property tax rate of $2.72 per $100 of assessed value. This means a city resident with a $100,000 home will see an increase of about $84 per year.
The assessment value for residential and farm property in Knoxville is 25% of the appraisal value of the property. So in order to calculate your new annual property tax rate, use the formula: (appraisal value * .25 * .0272).
According to Mayor Rogero, the tax increase is an investment in infrastructure. She hopes investments in greenways, nonprofits, bike lanes, and downtown improvements will improve the quality of life and contribute to economic growth.
The city budget includes:
- $1.2 million for public infrastructure improvements downtown
- $300,000 for continued improvements in the Magnolia Warehouse District and Corridor
- $500,000 to remediate blighted and chronic problem properties
- $500,000 for historic preservation projects
- $1 million for greenway corridors, and improvements to Lakeshore Park, Fountain City Lake and Ijams Nature Center
- $250,000 allocation for restrooms near downtown's Market Square
The new tax rate is expected to bring in about $14.5 million for the city.