Nashville’s property reassessment is underway. Here’s what that means for your tax bills — and city revenues.

For property owners in Nashville, it’s a big year — time for the city’s property reassessment, which happens every four years. And since the last reappraisal was conducted, much in Nashville has changed.

More people have moved in. Houses have been built. Some neighborhoods have become more popular, others less so. All of these market conditions, along with factors like square footage, amenities and nearby sales, can impact property values.

“Market values have changed,” says Davidson County Property Assessor Vivian Wilhoite. “We have a new city bird: crane in the sky.”

Some homes have technically been appraised over the last four years — that is, if they changed hands in a sale. But the job here is that all properties get a look, so Wilhoite’s team will be reassessing some 281,000 parcels in the county.

She says the evaluation is equally important to those whose home values went up as to those whose dipped.

“We want to make sure that they’re not paying more than their fair share,” Wilhoite says.

Property values impact tax bills. And they impact the city, as property revenues are a key part of Metro’s budget.

“It’s more than half of our total revenue in Davidson County,” says Dr. Kara Smith, an economist at Belmont University. “That makes it really a key source of revenue for any new initiatives that are going to come about.”

That’s especially true coming off of last year’s flat revenues — and when heading into a year that doesn’t look much different.

“The cost of hiring is going up, the cost of materials is going up,” Smith says. “So without some additional revenue — at least a little bit — it’s hard to even cover the same expenses that we’ve had in past years.”

Adjusting the tax rate

How the city gets this money is complicated.

According to state law, Metro is not allowed to take in more property taxes during a reappraisal year. The city adjusts the tax rate to keep things level, or “revenue-neutral.” So, if property values are rising, the tax rate will recalibrate down.

But the city does look to property taxes as an avenue to garner more revenue. In the past, mayors and councilmembers have often timed tax rate increases with reappraisal years. Nashville’s Mayor Freddie O’Connell says that this year looks to follow that trend, especially as uncertainty around federal funding persists.

“I expect there will be one,” O’Connell said Friday. “We’re looking at revenue forecasts closely, we want to factor in the appraisal data and see what all that looks like. I will say, even though we may be in an appraisal year and often that’s when you kind of see new signature scenarios, I think, for us, we’re focused on continuity. We’re focused on, kind of, right-sizing a pay plan.”

Homeowner impacts

While Metro relies on these taxes, changes can impact residents.

Financial advisor Tim Jester has lived in Old Hickory for the last decade. He knew he wanted to move in the first time he drove through it.

“It’s just picturesque,” Jester says. “There are not many places in Nashville where there’s sidewalk, tree-lined streets. It’s right on the water.”

Jester’s work has allowed him to weather tax increases, but he says if he were entering the market now, it might be a different story.

“Buying the home that we’re in now at the value it is now, and at the way interest rates are now, would not be financially wise on our part,” Jester says.

For some residents, there are ways to minimize the tax burden, including programs for certain military veterans, people with disabilities and seniors. Those who qualify can freeze the rate or get relief from property taxes.

Sam McCullough is one resident interested in the freeze program. He says without it, he’d be in a pretty tough situation.

Cynthia Abrams WPLN News

Sam McCullough sits in his home in Cleveland Park, which his parents bought back in the 1970s.

“I’d probably be going to live somewhere in public housing,” he says. “I couldn’t maintain all of this with those kind of taxes.”

“All of this” refers to the Cleveland Park home his parents bought in the 1970s. McCullough has lived there nearly all his life. Now, at 66, he’s back in his childhood home.

But many of his neighbors have been displaced, and that’s changed the feel of the neighborhood.

“This was just a friendly, loving neighborhood. If you were sick or needed help or something, you could run across the street,” McCullough says. “It’s been home. But it doesn’t feel like home a lot now.”

For those concerned about the reassessment — or its impact on tax rates — the property assessor is hosting a series of presentations about the process across the county.