GERMANTOWN, TN (WMC) - The city of Germantown is considering a proposed property tax hike. The extra cash would be partially used to pay for a new school.
During a reappraisal year like this one, city administrator Patrick Lawton says they work with the assessor's office to determine a certified tax rate that's dependent on property value increases.
"We're looking at raising the taxes from the new certified rate once it's adopted by the board at $1.76 to $1.99 - so we're tacking on another 23 pennies, 23 cents onto the tax rate," Lawton said.
And the reason behind the hike?
Lawton said a lot of it has to do with the new school being built and a state tax.
Ten pennies of that 23 cents goes to the new debt, new principal and interest payment for the new school.
Three pennies of that 23 cents goes to the debt service to make improvements on the road in front of the school.
The remaining 10 cents makes up for lost revenue from a dropped state tax.
"A particular state income tax called the hall income tax," Lawton said.
Now, the proposed hike will go through several readings before the final board meeting in June, including a public hearing.
Germantown residents had varying opinions of the proposal so far.
"I tend to favor it, this is a wonderful school system," said resident Buddy Jackson. "I have two granddaughters in it and I think they need to do everything they can for it."
"I don't like it," said resident Melvin Montgomery. "It's going to hurt a lot of senior citizens 'cause we're just trying to get by with what we have now."
The final board meeting is June 26.