Hamilton County Considers Shift to Two-Year Property Assessments to Capture Growth Revenue

Hamilton County Eyes Two-Year Property Assessments for Growth

In the bustling city of Chattanooga, a significant change could be on the horizon for property assessments as Hamilton County’s Assessor of Property, Marty Haynes, pushes for a shift from the current four-year assessment cycle to one that takes place every two years. During a recent talk at the Chattanooga Civitan Club, Haynes emphasized the benefits of this change, stating, “It helps you capture the growth dollars.” With the next round of appraisals set for 2025, his proposal aims to ensure that everyone in the community benefits from the ongoing growth of property values.

What’s Driving the Change?

Haynes plans to present his proposal to the County Commission, with hopes of getting it approved and sent to the State Board of Equalization by the March 2025 deadline. He pointed out that since he took office in 2016, the number of parcels in Hamilton County has surged by 25,000. With property values increasing substantially—by as much as 40 to 45 percent since the last assessment—Haynes is concerned that the county is losing potential “growth dollars,” referring to the revenue that could be generated from increased property values.

For example, properties south of Chickamauga Dam are seeing sky-high values, with an acre of land by the river fetching around $1 million. Even smaller lots are selling for about $50,000 on average. Haynes remarked, “Land values are going up tremendously. That’s what people are willing to pay for it. That’s significant.”

Challenges Ahead

Despite the exponential growth in land values, the county’s property tax base has only managed a meager 1.4 percent increase this year, which was even below the initially projected 2.5 percent. With property tax making up a notable 60 percent of the county’s revenue, the slow growth in property tax revenue raises concerns on how budget needs will be met.

In terms of population growth, Hamilton County has also seen an influx of about 5,500 new residents in 2023. Tennessee’s Comptroller, Jason Mumpower, has voiced support for a switch to two-year assessments in larger counties like Hamilton, while smaller counties can maintain a four-year schedule, providing a tailored approach based on specific community needs.

Reassessing Property Values

While some areas of the county are experiencing rapid increases in property values, the reality is that real estate sales have taken a downturn. Haynes distributed a chart showing that real estate sales plummeted to approximately 5,000 in 2024, down from almost 10,000 in 2021. This sharp drop in sales, along with high property valuations, puts pressure on both the housing market and the county’s budget.

The Proposal’s Next Steps

The next steps in this process will involve more discussions and evaluations by the County Commission. If approved, the recommended change will be presented to the State Board of Equalization by March 2025, making it a key priority for local governance.

As the conversation continues, residents of Hamilton County are left to wonder what these changes could mean for them. Will property assessments more accurately reflect the dynamic and growing market? How will the budget adapt to revenue changes? While Haynes continues to advocate for these necessary adjustments, the community will likely keep a close eye on the evolving landscape of property values in Chattanooga and beyond.