1. A property tax increase in Davidson County will push even more residents to surrounding counties. Davidson County property tax rates are already well above those of surrounding counties. The MTSU study, cited below, shows continuing migration to surrounding counties. Also, this study indicates those moving out have higher incomes and those moving in have lower incomes. Both trends will continue to erode the tax base. The reality is that a Nashville resident in the USD (Urban Services District) can move to Sumner County and reduce their property tax rate from $4.58 to $2.59.

 

  1. A property tax increase will simply increase these migration trends and increase the pressure for even more property tax increases in the future.

 

  1. Instead of raising taxes, Davidson County must face the growth in spending problem. Other counties are clearly operating with far lower property taxes.

 

County

2004 Tax Rate

Davidson (GSD)

3.84

Cheatham

3.13

Wilson

2.97

Dickson

2.86

Williamson

2.84

Rutherford

2.80

Robertson

2.66

Sumner

2.59

City/County

2004 Tax Rate

Davidson (USD)

4.58

Cheatham/KingSprgs

3.71

Wilson/Lebanon

3.84

Dickson/Dickson

3.87

Williamson/Franklin

3.27

Rutherford/Murf

4.52

Robertson/Sprngfld

3.66

Sumner/Gallatin

3.71

 


 

Source: http://170.142.31.248/PA/ListRates04.asp

 

A recent MTSU study shows people are moving OUT of Davidson County to surrounding counties. A property tax increase will simply cause more people to move OUT. This will further erode the tax base and increase the pressure for future tax increases.

 

Source: http://www.mtsu.edu/%7Eberc/msei/pdfs/meisum04.pdf

 

Here are quotes from the study:

"The data indicate that the largest urban to suburban migration occurred between Davidson and the counties that lie to the east and south, including Rutherford, Sumner, Wilson, and Williamson. Rutherford County attracted the largest number of migrant households from Davidson County, followed by Williamson County. All the counties except Davidson experienced a positive net in-migration. Rutherford County experienced the greatest positive net inmigration (1,095 households) from the other Nashville MSA counties."

"The data also indicate that households moving into the suburbs have higher incomes than those moving into Davidson County. For Davidson County there was an income differential of $4,620 between U.S. resident households moving in and those moving out. This indicates the continued trend of the influx of lower income households vis-à-vis those moving out."