Kingsport BMA sets third lowest tax rate in city history
KINGSPORT ‚¬ Taxpayers in Kingsport are reaping the benefits of recent growth in the community, enabling the Board of Mayor and Aldermen to set the third lowest tax rate in city history.
With reappraisals recently completed in Sullivan County, the tax rate in Kingsport will be $1.94 per $100 of assessed value, with tax assessments only applied to 25 percent of the market rate for residential and 40 percent for commercial property.
In many states, it is not uncommon to see property taxes applied to 100 percent of assessed value.
There are a couple of things in state law that continue to make Tennessee and our region an attractive place to invest and grow a business or buy a new home, City Manager John Campbell said Wednesday. First, under state law, in a reappraisal year by the county assessor, tax rates are equalized to limit revenues to approximately the same as in the previous year.
To change this rate requires a clear vote of the local governing body. It is also very important that a property is not taxed on its full value. Instead, its limited to the 25/40 ratio for residential and commercial properties.
In cities that are located in two or more counties, the tax rate is also equalized between counties, accounting for different reappraisal cycles in different counties. As a result, Kingsport residents living in the Hawkins County portion of the city will see their 2010 property tax rate set at $2.24.
We let the state handle those equalization calculations, Campbell said. But it is a very fair process that ensures each area is paying the equivalent, given differing property values and differing appraisal cycles that may see one portion of the city assessed at only 75 percent of current market value because that portion is in a different county.
Overall, Mayor Dennis Phillips said he is pleased with the progress of the city on many fronts, noting key investments in residential and commercial construction, as well as higher education, which should help the community to grow over the long term.
We looked this up and it is clear that the tax rate is the third lowest rate ever in the city, and thats dating back to 1917, Phillips said. There are always naysayers out there, but we knew if we could get Kingsport moving on the residential and commercial fronts, and continue to develop a better educated workforce, we were going to see the kind of growth that keeps tax rates low for everyone.
Under the new tax rate, a $175,000 home in the Sullivan County portion of Kingsport would be assessed $848.75 in annual city property taxes.