The Crossville City Council will hear from the public on a proposed 15-cent tax increase Tuesday.
The public hearing begins at 5:30 p.m. in the council chambers of Crossville City Hall, 392 N. Main St.
The council passed the second reading of a 15-cent property tax increase May 18 during a special-called meeting. It requires three successful readings by the council to take effect.
“We have so much we want to do,” Mayor James Mayberry told the council during the May 18 meeting. “We have one of the lowest property tax rates in the area.”
The city council last raised property tax rates six years ago, Mayberry said. A year or so later, the property reassessment process rolled the tax rate back to $0.5905 per $100 assessed value, where the tax rate stands today.
The proposed tax increase will generate about $600,000 annually for the city. Purpose for the hike is to offset a rise in operating costs and to build a fund for the planned indoor recreation center.
Property taxes are paid on a portion of the value appraised by the Cumberland County Property Assessor’s office. For residential property, that portion is 25%. Commercial properties are taxed on 40% of property value. That figure is divided by $100 and the multiplied by the tax rate to determine the annual tax bill.
The proposed tax increase would represent an annual increase of about $56 for a home valued at $150,000.
The council will meet as the beer board beginning at 5:45 p.m., with a public hearing annexation of The Gardens Phase 9 at 5:50 p.m.
The council’s monthly meeting will follow the hearing at 6 p.m. The tax rate and 2021-’22 budget is up for second reading as part of the consent agenda.