Posted: May 22, 2012 2:00 PM CDT
NASHVILLE, Tenn. -
A property tax increase proposed earlier this month by Nashville Mayor Karl Dean would also affect the city's renters.
According to the Greater Nashville Apartment Association, if the mayor's 53-cent tax increase is approved, Nashville renters could see an increase of $14 a month based on the average rent paid in Davidson County.
The increase would be significantly more for those paying greater than $645 a month and for those living in large commercial apartment complexes.
GNAA says a property tax increase could cause a domino effect as landlords look to cut cost in property care and services offered to renters.
Mayor Dean's increase would raise the property tax rate to $4.66 per $100 of assessed value, generating approximately $100 million a year for the city.
The impact on the average homeowner would be about $16 a month, or $192 a year, using the Greater Nashville Association of Realtors' median home price of $145,400.
The mayor said his proposal and budget of $171 billion moves the city forward by investing in schools and public safety.
The Metro Council must approve a city budget by the end of June.
