Commission adopts certified tax-rate ordinance after public hearing; multi-county equalization explained

Johnson City commissioners held a public hearing July 17 and approved the ordinance adopting the certified tax rate for the 2025 tax year. Finance Director Stephanie Louse explained that the certified tax-rate process — established by the State Board of Equalization procedures originating in 1989 — is used after reappraisals to ensure the city’s total tax levy yields the same revenue after changes in assessed values.

Why it matters: The city spans three counties (Washington, Sullivan and Carter), which reappraise properties on different cycles; Louse said Washington and Sullivan are at 100% of market following recent reappraisals while Carter’s appraisal ratio is lower, so separate certified rates are calculated to equalize collections without producing a windfall from revaluation timing.

Key numbers staff presented: Louse said the city’s equalized rate calculation produced a target equalized tax rate of about 1.3785 (per hundred dollars of assessed value) to maintain last year’s levy. Carter County’s certified rate was higher (Louse referenced a certified rate in the meeting materials of about 2.3965) because its appraisals lag the others; Sullivan and Washington matched the equalized rate because of recent reappraisals. Louse summarized that not approving the certified rates would require redoing the budget and tax ordinances already adopted.

Public hearing: No members of the public spoke during the certified-rate public hearing. The commission then moved and approved adoption of the certified rates in ordinance form.

Implementation: Finance staff will publish the certified tax rates for the county-specific parts of the city and implement them in fiscal operations.