Chattanooga Mayor Proposes 33 Percent Tax Increase

Chattanooga Mayor Ron Littlefield is proposing a 33 percent increase in property taxes. In a presentation to the Chattanooga City Council Tuesday, the Mayor said the city will face some tough choices if there is not a tax increase. He said there is an estimated $32 million gap between expected revenues ($166,385,000) and expenditures ($198,636,506).

The current city tax rate is 1.939. The Mayor says it will take an increase of 0.6396, to a total tax rate of 2.579 to balance the current budget.

The Mayor says the increase would equal a $160 increase per year on a $100,000 home.

The increase would put the combined Chattanooga/Hamilton county tax rate above most major cities except for Memphis and Oak Ridge. (see Slide 27 in attached presentation)

The City Council scheduled to vote on the budget in its first reading on June 1. The second and final reading is scheduled for June 8.

Click HERE to see the PowerPoint Presentation the Mayor shared with City Council members today.