16.1% property tax hike won't apply to eligible tax freeze recipients who already applied

Eligible senior citizens who signed up for a property tax freeze in advance will avoid Rutherford County's 16.1% increase approved Monday.

"You had to have been frozen prior," Rutherford County Trustee Teb Batey said Tuesday the day after the Rutherford County Commission decided to approve the tax hike.

Eligible applicants for a future tax freeze may get a break from the next increase. The county commission has been on a pattern since 2015 of raising property taxes every four years following an election year. Prior to the 16.1% hike decision, the tax rate increased by 7.8% in 2015 and 5.7% in 2019.

The tax hikes have involved the county commission funding the rising costs of providing services for the fast-growing county. This includes funding new schools or campus expansions to serve a Rutherford County school district that typically adds over 1,000 students annually.

The 16.1% tax hike means the owner of a home appraised at $334,600, the median value out of 92,036 houses by the Rutherford County Property Assessor's Office, will pay over $217 more in annual property taxes with a new total payment of more than $1,569.

Commissioner Mike Kusch reminded people Monday about the tax freeze after joining the majority in a 13-8 vote to increase the property tax rate.

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Tax relief available to help eligible residents

In addition to the tax freeze, eligible property owners can apply for tax relief at any time regardless of any decision on tax rates, Batey said.

Those eligible for tax relief include low-income senior citizens who are at least 65 or home owners who qualify for disability benefits through Social Security, Batey said. The limit on 2022 income is $33,460 to be eligible.

Disabled veterans or their surviving spouses are also eligible for tax relief without any income limit, Batey said.

The state annually provides over $41 million in tax relief through vouchers to help over 100,000 eligible residents pay property taxes on each applicant's primary residence, according to the Tennessee Comptroller of the Treasury's Office.

The county also contributes up to $306 toward tax relief. When combined with the state funding, tax relief in Rutherford can be up to about $1,125 for each disabled veteran or surviving spouse, Batey said.

Tax relief for low-income senior citizens or disabled home owners can be up to $445, Batey said.

Those eligible must reapply annually for tax relief.

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Tax freeze does have income limits

Applicants can possibly qualify for both tax relief and tax freeze.

"There are no liens against the property," Batey said. "This is not a tax deferral."

Tax relief applications will be available by Oct. 1.

Those wanting a property tax freeze for the next increase will have until April 4, 2024, to apply and remain on the tax rate adopted Monday.

The property tax rate increased by 26 cents to $1.8762 per $100 of assessed property value (25% of appraisal), which is nearly a 16.1% hike.

Those who qualified in advance of the tax hike had to be 65 or older by Dec. 31, 2023, and have a 2022 household income at or below $47,570.

The income limit on the tax freeze is recalculated annually and could increase to as high as $60,000 allowed by the Tennessee General Assembly in 2024 if local governments agree, Batey confirmed.

Those eligible for the tax freeze also must reapply annually.

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Tax freeze applicant could still pay more after improving property

The freeze is limited to the applicant's primary residence and five acres of property.

The locked in tax rate will apply to any remodeling improvements that add appraisal value to the home. That means the total tax bill would increase for the improved property rather than remain the same based on the previous appraisal by the Rutherford County Property Assessor's Office.

The record keeping for tax freezes do require more government staff hours to adjust pending property tax bills from Rutherford County Property Assessor Rob Michell.

"It takes us four people job shifting from their regular duties in order to properly process all of the tax freeze in a timely matter, yet we receive no additional funding to do this," said Mitchell, a Republican who's running for reelection in 2024.

Batey, a fellow Republican reelected to a four-year term in 2022, said the tax freeze and tax relief applications also require significant time from his staff.

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Those wanting tax relief or tax freeze urged to make appointments

Accepted applicants must apply every year and show documents to the trustee's office, such as a federal income tax return, Social Security benefit statement, Medicare card or drivers license, utility bill or voter registration card.

Call the office at 615-898-7705) and make an appointment. "We'll tell them what to bring," Batey said.

The trustee's office is open from 8 a.m. to 4:30 p.m. Monday through Friday on the first floor of the Rutherford County Courthouse in the center of Murfreesboro's downtown Public Square.

The trustee's office handles applications for tax relief for the county, Smyrna and Eagleville governments, and processes the tax freeze applications for all participating local governments in Rutherford County, Batey said.

The trustee's office also collects taxes for the county, Smyrna and Eagleville while Murfreesboro and La Vergne governments collect their own city taxes and process tax relief applications at their city halls.

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Reach reporter Scott Broden with news tips or questions by emailing him at sbroden@dnj.com. Follow him on Twitter @ScottBroden. To support his work with The Daily News Journal, sign up for a digital subscription for all dnj.com stories.

Making appointments for tax freeze or tax relief

• Where to apply: Rutherford County Trustee's Office

• Phone number to request appointment: 615-898-7705

• Hours of operation at trustee's office: 8 a.m. to 4:30 p.m. Monday through Friday

• Location of trustee's office: first floor of Rutherford County Courthouse in center of Murfreesboro's downtown Public Square

Source: Rutherford County Trustee's Office

This article originally appeared on Murfreesboro Daily News Journal: 16.1% property tax hike won't apply to eligible tax freeze recipients