From left are Civitan Susan Lotz, program chairman Neal Thompson, Assessor Marty Haynes and club president Robert Edwards
photo by Jim Robbins
As the county gears up for property appraisals in 2025, Hamilton County Assessor of Property Marty Haynes says he is considering asking that assessments be every two years instead of every four.
“It helps you capture the growth dollars,” he told Chattanoogan.com, after he spoke to the Chattanooga Civitan Club on Friday.
“A two-year plan is more beneficial to everyone,” he said.
Mr. Haynes said, "We are a long ways from a decision, but it is something we are studying.
If it goes forward, the idea would be submitted to the County Commission. If approved, it would be submitted to the State Board of Equalization by the March 2025 deadline.
Mr. Haynes told the crowd at the Civitan Club that Hamilton County has 25,000 more parcels now than when he took office in 2016.
“Where are all of our growth dollars going?” he said. “We lose growth dollars.”
South of Chickamauga Dam, an acre by the river is $1 million, he said. Almost any lot 100 feet by 75 feet will sell for $50,000, he said.
“Land values are going up tremendously,” Mr. Haynes said. “That’s what people are willing to pay for it. That’s significant.”
Mr. Haynes said the state wants to review real estate sales monthly instead of quarterly to check that high market prices are fair.
During a county budget presentation for fiscal year 2025, it was stated that the property tax base has grown by just 1.4 percent this year, even less than the county’s modest projection of 2.5 percent. Property tax makes up 60 percent of the county’s budget revenues.
About 5,500 people moved to Hamilton County in 2023.
Tennessee Comptroller Jason Mumpower has said he favors two-year appraisals in big counties like Hamilton, and four-year appraisals in smaller ones which now have appraisals every six years.
But Shelby County’s request for two-year appraisals has failed twice before the Board of Equalization.
While Hamilton County property values have increased 40 to 45 percent since the last appraisals in 2021, the certified tax rate recalculated by the County Commission must decrease so that overall, property tax collected remains the same from assessment year to assessment year, Mr. Haynes said.
The state also requires a sales ratio cap and sets an assessment factor to ensure that taxes increase minimally even if value increases significantly.
More property tax revenues would come from new construction, commercial and industrial properties and apartment buildings.
Mr. Haynes said that from 2017 to 2021, one third of Hamilton County property tax bills decreased, one third increased, and one third remained about the same. Increases were probably felt most in Red Bank and East Ridge, he said, where values increased by about 60 percent. Meanwhile, values on Lookout Mountain increased about 20 percent.
“It’s rare that it goes down,” he said.
While property values are rising, sales are dwindling. Mr. Haynes distributed a chart illustrating that real estate sales have fallen to about 5,000 in 2024, down from almost 10,000 in 2021.