O’Connell on Taxes: “Technically, you’re welcome.”
💰 Nashville property tax paradox: lower rates, bigger bills · Fisk doubles down on $400 million data center · Nashville leaders reject ICE call center · Much more!
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The great Nashville property tax paradox: lower rates, bigger bills, definitely not the mayor's fault?
From Megan Podsiedlik
Over the weekend, Mayor Freddie O’Connell returned to Nashville Restaurant Radio and spoke with Brandon Styll about property taxes, Nashville’s growth, and the future of independent restaurants.
O’Connell’s message on the property tax increase remains largely unchanged: it’s not his fault, and rates are actually down.
“One, we have the lowest property tax rate in the history of Metro,” said O’Connell. “Two, among Tennessee's big cities, we have the lowest property tax rate. Among states, Tennessee ranges between 48th and 50th in per capita tax burden.”
Instead, O’Connell argues that the issue is more complicated than simply saying Metro raised property taxes. Tennessee law requires Metro to reassess property values and then adjust the tax rate through an equalization process. For some reason, this distinction continues to get muddled by the mayor’s office.
The concept is pretty straightforward: if the city wants more property tax revenue, the mayor and Metro Council have to raise property taxes. Metro government can’t simply cash in on rising property valuations. But according to O’Connell, the equalization process is an unfair imposition by the state.
“We zero out any increases in revenue, and then in order to even do inflationary adjustment, we have to go raise property taxes,” said O’Connell. “And yet, after we raise them, the rate, because of property value growth, is inevitably much, much lower as a rate than it was four years ago.”
When confronted with the suggestion that his messaging appears to put the blame and burden on businesses and property owners, O’Connell pivoted.
The mayor explained that he’s had to ask departments to “dig deep and find efficiencies” when the city is unable to increase property tax enough to cover Metro's needs. “We have felt the cost of governing increase the same way that local business owners, property owners, have felt the cost of doing business increase,” said O’Connell.
However, O'Connell says the administration is exploring several potential changes, including:
- Allowing triple-net lease tenants to participate in the property assessment appeal process
- Potentially phasing certain tax payments
- Looking at different approaches for historic districts
- Considering how the length of property ownership might factor into valuation
- Expanding small-business and legacy-business incentives
Listen to the full interview here.
✹ PROPERTY TAX CALCULATOR
What Moved Your Bill? Use our handy new tool to see what contributed to your property tax bill increase: the reappraisal or the rate hike. (Try It Out)
HEADLINES
- 💻 Fisk University doubles down on data center pursuit as Nashville debate heats up. Fisk University is standing behind its $400 million data center proposal as debate over the project intensifies across Nashville. A new 12-page report from the university provides additional details about the proposal, addresses community concerns, and outlines what Fisk says could be benefits for the North Nashville community. (NBJ)
- 🧊 Nashville leaders, advocates push back on planned ICE call center in Donelson. Nashville leaders and immigration advocates are opposing plans for a national ICE call center in Donelson’s 37214 ZIP code, arguing that it would support federal detention and deportation efforts. Critics—including Metro Council members, faith leaders and immigrant-rights organizations—say the facility conflicts with Nashville’s values and could increase fear among immigrant families; ICE has said the center would help locate unaccompanied migrant children. (Fox 17)
- 💵 Mayor announces initiatives to support Nashville’s small businesses. Mayor Freddie O’Connell announced three initiatives aimed at helping Nashville’s small businesses: a Legacy Business Program, a Workforce Advancement Incentive Program, and an expanded Property Investment Incentive Program. The programs include $300,000+ available for the first-year legacy-business pilot, grants of up to $10,000 for workforce training, and matching grants of up to $50,000 for qualifying commercial property improvements. (Mayor’s Office)
- 🎶 Bonnaroo taking a “much needed year off.” Bonnaroo will take a one-year break in 2027, and is expected to return after the hiatus. Bonnaroo cited improvements needed on the Farm, including in the main venue, Centeroo, which became a giant mud pit on Sunday this year, despite multiple truckloads of mulch brought onto the grounds. (WKRN)
✹ METRO COUNCIL WATCH
New Council Watch Features We've added additional features to Council Watch. In addition to who's funding your council member, you can now see how they vote and who they vote with most frequently. (Take a Look)
DEVELOPMENT
- Starbucks lays off 224 more corporate workers, as expansion to Nashville continues (NBJ)
THINGS TO DO
View our calendar for the week here.
📅 Visit our On The Radar list to find upcoming events around Nashville.
🎧 On Spotify: Pamphleteer's Picks, a playlist of our favorite bands in town this week.
👨🏻🌾 Check out our Nashville farmer's market guide.
TONIGHT
🎹 David Ian Trio @ Rudy's Jazz Room, 6p, $12, Info
🪕 The French Family Band @ Station Inn, 8p, $20, Info
✨ Ritual Breaks @ The Basement, 7p, $24.65, Info
🪕 Bluegrass Mondays with Kyle Tuttle @ Dee's Lounge, 6p, $10, Info
💀 Grateful Monday @ Acme Feed & Seed, 7p, Free, Info
🕺 Motown Monday @ The 5 Spot, 9p, $5, Info
📰 Check out the full newsletter archive here.
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Today's newsletter is brought to you by Davis Hunt, Megan Podsiedlik, and Camelia Brennan.