Oak Ridge North will hold a public hearing for its fiscal year 2026-27 tax rate Aug. 24, which will be an increase from the current rate of $0.4268 per $100 valuation, per a decision made at the Aug.10 City Council meeting.
Breaking it down
While the staff recommendation is to set the proposed total property tax rate at $0.4615 per $100 valuation, City Manager Heather Neeley said at the meeting that if the council sets the public hearing for a rate no higher than $0.5327 per $100 valuation, they can reduce it to the recommended amount at that time. However, if it proposes a higher amount now, it cannot go any higher at the public hearing.
“Once we set the proposed rate, we can always go down,” Neeley said. “I would still set the proposed tax rate at $0.5327, but our recommendation is $0.4615.”
The tax rate is made of two portions—a maintenance and operations rate, and an interest sinking, or debt service, rate.
FY 2026-27 tax rate options per $100 valuation:
- The no-new-revenue rate: $0.2927
- Voter approval rate: $0.3962
- Recommended M&O rate: $0.3250
In addition to the M&O rate, the debt service rate in any scenario is $0.1365, Neeley said. The two rates together form the total tax rate.
Another detail
City documents state the recommended rate would increase taxes from the current fiscal year by approximately $34.70 annually for every $100,000 of taxable home value. This would be approximately $78.95 annually for the median homestead valued at $230,176.
What’s changed
Officials said several factors will likely lead to lower tax revenue in FY 2026-27, necessitating an increase in the rate:
- Appraisal protests and adjustments to certified taxable values
- House Bill 9, which increased the business personal property exemption from $2,500 to $125,000, thereby reducing taxable value.
Public hearings on the tax rate and budget will take place at the 6 p.m. meeting Aug. 24 at City Hall, 27424 Robinson Road, Oak Ridge North.
