This article has been updated with additional information.

CLARKSVILLE, TN (CLARKSVILLE NOW) – The Montgomery County Commission will be presented with the proposed 2024-25 budget on Monday, July 8, which includes a proposal to increase the property tax from the certified rate to $2.18 per $100 of assessed value.

The certified tax rate for the county was issued in the month of June at a rate of $1.832 (down from $2.99). Montgomery County Assessor of Property, Erinne Hester, previously told Clarksville Now the certified tax rate balances the total property tax revenue collected between tax year 2023 and 2024, and the rates were calculated based on the overall value of countywide properties increasing 65% during reappraisal this year.

Each property tax rate is per $100 of assessed value. So, for example, if your home’s market value is $200,000, your assessed value is 25% of that, or $50,000. So, with the proposed property tax rate set at $2.18 per $100 of assessed value, you would pay $1,090 in county taxes. ($200,000 x .25 / $100 x $2.18 = $1,090)

Property tax implications

If a proposed tax rate of $2.18 is approved by the County Commission, the average home valued at $346,000 will pay approximately $25 more per month, according to a Montgomery County news release. Each penny to the tax rate is valued at $894,000.

“One of our greatest challenges is that inflation for materials has increased by 22.88% since 2019,” said Montgomery County Mayor Wes Golden. “The Budget Committee spent many hours listening to presentations from every elected office and department. Our focus remains on education, infrastructure and public safety and that is what we’ve done with this budget.”

The Budget Committee made adjustments throughout the budget process, which included nearly $30 million in reductions from proposed requests ranging from capital projects to personnel requests, reclassifications and capital outlay.

“Adding any burden to our residents is not something anyone wants to do but we are not making good headway in paying down our debt at our current rate. To be good stewards of tax revenue we need to pay more than we owe, which requires making changes to the budget,” Golden said.

The news release noted that F&M Bank Arena is not funded through property taxes, but through industrial pilot project funds and hotel/motel taxes.