Chattanooga, TN, August 31, 2025
News Summary
Chattanooga officials are considering a proposed property tax rate change amid community concerns. Mayor Tim Kelly’s suggestion of $1.93 per $100 assessed value has faced scrutiny, as it still represents an increase from the city’s current rate of $2.25. Alternatives are being proposed to balance funding needs with financial impacts on residents. The City Council is set to vote on the proposal soon. Additionally, Preserve Chattanooga is hosting a Preservation Town Hall to discuss local architectural preservation efforts.
Chattanooga Council Considers Alternative Property Tax Rate Amid Community Concerns
Chattanooga officials are deliberating a proposal to adjust the property tax rate, which has sparked concern among residents regarding its financial implications. Mayor Tim Kelly has proposed a property tax rate of $1.93 per $100 of assessed property value. This figure marks a decrease from a previous suggestion of $1.99. However, the proposal still constitutes an increase from the city’s current rate of $2.25 per $100, which translates to an anticipated financial burden of approximately $400 for average households when comparing it to the certified tax rate of $1.55.
In response to community feedback, Councilman Jeff Davis of District 3, along with Councilman Chip Henderson of District 1, has introduced an alternative property tax rate of $1.69 per $100 of assessed value. This alternative represents an increase of $0.14 from the certified tax rate and seeks to balance the need for enhancing city services while alleviating the financial strain on local taxpayers.
Recent discussions surrounding the proposed tax increase have highlighted apprehensions among residents. Individuals, including some from District 3, expressed worries that the tax hike could force them to alter their employment situations or make lifestyle cuts. This sentiment is representative of a broader concern within the community about the rising costs associated with living in Chattanooga.
The City Council is poised to vote on the property tax proposal on August 26, as various leaders weigh the economic implications for residents against the necessary funding for local services and projects.
Upcoming Preservation Town Hall Meeting
Simultaneously, a spirited dialogue about the preservation of Chattanooga’s architectural heritage is set to take place on August 21. Preserve Chattanooga will host a Preservation Town Hall aimed at discussing the implications of a recent historic Car Barn demolition and the necessity for safeguarding significant buildings in the city. This event will occur at the historic Second Presbyterian Church.
Keynote speakers from Preserve Chattanooga will present information and field public inquiries during the town hall, providing an essential platform for community input. The organization, which has championed the preservation of the city’s architectural identity for 50 years, aims to outline a comprehensive development plan for Hamilton County through this initiative.
This preservation dialogue will continue with a future awards event on September 18, featuring Donovan Rypkema, a renowned expert on the economic and environmental benefits of historical preservation. The ongoing efforts by Preserve Chattanooga underscore the importance of sustaining the city’s rich cultural history amidst contemporary development pressures.
Key Information Summary
- Chattanooga Mayor Tim Kelly proposed a property tax rate of $1.93.
- Councilmen Jeff Davis and Chip Henderson proposed an alternative rate of $1.69.
- The City Council will vote on the property tax proposal on August 26.
- Preserve Chattanooga will host a Preservation Town Hall on August 21 at Second Presbyterian Church.
FAQ
What is the current property tax rate in Chattanooga?
The current property tax rate stands at $2.25 per $100 of assessed property value.
What rates are being proposed for the property tax increase?
Mayor Tim Kelly proposed a rate of $1.93, while an alternative proposal suggests a rate of $1.69.
When will the City Council vote on the property tax proposal?
The City Council is scheduled to vote on August 26.
What is the purpose of the Preservation Town Hall?
The Preservation Town Hall aims to discuss historic preservation concerns and launch a development plan for Hamilton County.
Who will be speaking at the Preservation Town Hall?
Speakers from Preserve Chattanooga will lead the discussion, which will include a public Q&A session.
Property Tax Rates Comparison
| Property Tax Rate | Amount per $100 of Assessed Value | Change from Current Rate |
|---|---|---|
| Current Rate | $2.25 | N/A |
| Mayor Tim Kelly’s Proposal | $1.93 | Decrease of $0.32 |
| Alternative Proposal by Councilmen | $1.69 | Decrease of $0.56 from Current Rate |
| Certified Tax Rate | $1.55 | Increase from Certified Tax Rate |
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Additional Resources
- Times Free Press: Fleischmann Says Never to Town Hall
- Local 3 News: District 3 Councilman Holds Town Hall
- Chattanooga Pulse: Chattanooga’s First Preservation Town Hall
- News Channel 9: Chattanooga’s July 16th Terror Attack Townhall
- Wikipedia: Property Tax
Author: STAFF HERE CHATTANOOGA WRITER
The CHATTANOOGA STAFF WRITER represents the experienced team at HEREChattanooga.com, your go-to source for actionable local news and information in Chattanooga, Hamilton County, and beyond. Specializing in "news you can use," we cover essential topics like product reviews for personal and business needs, local business directories, politics, real estate trends, neighborhood insights, and state news affecting the area—with deep expertise drawn from years of dedicated reporting and strong community input, including local press releases and business updates. We deliver top reporting on high-value events such as Riverbend Festival, Chattanooga Oktoberfest, and Moon River Festival. Our coverage extends to key organizations like the Chattanooga Area Chamber of Commerce and United Way of Greater Chattanooga, plus leading businesses in manufacturing, insurance, and utilities that power the local economy such as Volkswagen Chattanooga, BlueCross BlueShield of Tennessee, and EPB. As part of the broader HERE network, including HEREBristol.com, HEREKnoxville.com, HEREMemphis.com, and HERENashville.com, we provide comprehensive, credible insights into Tennessee's dynamic landscape.
