Tax Rate Comparison Reveals Impact on Homeowners in Chattanooga

The City Council of Clarksville, TN, held a special work session on June 12, 2025, to discuss the proposed tax rate increase and its implications for local residents. The meeting focused on comparing Clarksville's tax rate with those of similar cities and analyzing the potential financial impact on homeowners.

During the session, council members reviewed tax rates from several nearby cities. Chattanooga's tax rate stands at $2.25 per $100, while Knoxville's is $2.16. Memphis has the highest rate at $3.20, followed by Nashville at $3.25, which reflects its metropolitan status. Murfreesboro's rate is notably lower at 95.26 cents, and Johnson City, which has a smaller population than Clarksville, has a tax rate of $1.35.

The discussion then shifted to the anticipated effects of a proposed 15-cent increase in the tax rate. Council members emphasized the importance of understanding how this increase would affect taxpayers. They calculated that the average residential property in Clarksville is valued at approximately $266,000. Under the current tax rate of 88 cents, homeowners would pay about $5.85 annually. With the proposed increase, this amount would rise to just under $100 extra per year.

The meeting concluded with a commitment to further evaluate the tax implications and to communicate transparently with residents about the potential changes. The council aims to ensure that taxpayers are well-informed as discussions continue regarding the budget and funding for city services.