Warren County auditor pitches 0.5% sales‑tax pilot and one‑year property‑tax holiday; public hearing yields mixed reaction

County Auditor Matt Nolan proposed at a June 16 public hearing that Warren County test a shift in the tax mix by raising the county sales and use tax by 0.5 percentage points while enacting a one‑year county property‑tax holiday for the 2027 collection year.

Nolan told the Board of Commissioners and more than two dozen residents that recent state legislative changes have limited future property‑tax increases and expanded owner‑occupancy credits, but that counties retain major choices about how to fund services. He estimated the county’s property‑tax share is about $32 million annually and said a 0.5‑point sales‑tax increase could generate roughly $27 million in year‑one revenue, noting a pilot would let officials evaluate the trade‑offs.

Why it matters: The proposal would shift more of the county’s revenue base from property taxes — mostly borne by owners — to consumption taxes, which are paid at the point of sale and therefore partly borne by visitors and nonresidents. Nolan argued Warren County’s strong tourism and visitor economy means a larger share of sales taxes already comes from outside the county and that shifting the burden could meaningfully reduce property‑tax bills for many residents.

“Every single person in this room, every resident of Warren County, property taxes are going down on the second half,” Nolan said, summarizing recent statute and administrative changes he said will reduce many residents’ tax bills. He also illustrated the household arithmetic: for a $300,000 house he used a county share of about $270 and estimated the sales‑tax increase would cost about $50 per $10,000 in taxable spending per year.

Legal and procedural limits: Adam Nice of the county prosecutor’s civil division told the board a sales‑tax increase enacted by the commissioners would be subject to a 30‑day referendum period. He also explained that the county must annually certify how much inside millage it will collect, meaning a property‑tax holiday would have to be reaffirmed each year through the budget process — the board could pilot a change but not unilaterally guarantee permanence.

Public reaction: Comments at the hearing were mixed. Some residents and stakeholders urged the county to make a permanent shift to consumption‑based revenue and argued the sales tax helps protect seniors and homeowners who don’t control property values. Others urged caution: renters and low‑income residents would be more exposed to consumption taxes, and several speakers asked for more detailed cost‑benefit studies showing who pays and who benefits.

“I'm a 100% disabled veteran,” said resident Ryan Griffin, who asked why the county had not adopted expanded homestead exemptions for veterans and seniors. County staff answered that the state’s recent changes effectively broadened the homestead protections and that county options are limited; staff said the auditor will revisit details at follow‑up hearings.

Next steps: Commissioners held the hearing, solicited public comment and legal clarification, and scheduled another public hearing and evening session to continue the discussion. No final legislative action was taken June 16.

Source: Warren County Board of Commissioners meeting, June 16, 2026; comments by Matt Nolan (County Auditor), Adam Nice (Warren County Prosecutor's Office), and public testimony.