Certified Tax Rate Lower After Reappraisals, Is Now Up to County and Cities

Wayne County, TN Property Assessor Dustin White held the first of three town hall meetings last week to discuss upcoming changes to property tax assessments. Attendance at the meeting was low, but hopes are high that more will attend the town halls in Clifton and Collinwood.

Mr. White first explained that Wayne County is on a six-year, state-mandated reappraisal cycle, with appraisals to be adjusted in the third year. This is the third year in the cycle, meaning that appraisers from the State Comptroller’s Division of Property Assessments have adjusted values based on the county’s property sales in 2024.

Mr. White explained in detail how the appraisal adjustments were calculated as mandated by the state. All property sales in Wayne County from January 1, 2024 to December 31, 2024 were looked at by the state. The sales price on the deed was compared to the tax assessment value, and if the difference was over 10%, an update on the tax assessment value was applied. White said that this type of reappraisal change has not taken place in Wayne County in several years, with the reason for the change this year being the steep increase in the sale price of property. Home and property sale prices have skyrocketed in the last few years, especially since COVID. White agreed that he doesn’t see a decrease in property sale prices anytime in the near future.

There were 285 accepted sales in Wayne County last year. No instances of multiple parcels, family-to-family, or neighbor-to-neighbor sales were accepted in the study due to the fact that they could potentially skew the averages.

After the study of the 285 accepted sales, the assessment value of houses is going up 59%; residential outbuildings, including barns, garages, utility buildings, etc., is up 40%; assessment values of land are going up 45%; and commercial property assessments remain the same. White explained that the reason for the commercial property assessments staying the same is the fact that people simply aren’t buying many commercial properties in Wayne County right now.

Mr. White gave the following examples of property sales near or in Waynesboro last year:

• 1978 House in Waynesboro – Sale Price $249,900, Tax Assessment Value $151,800, Difference $98,100

• House and 46 Acres near Waynesboro – Sale Price $832,000, Tax Assessment Value $286,900, Difference $545,100

• 83-Acre Timber Tract near Waynesboro – Sale Price $245,000, Tax Assessment Value $125,600, Difference $119,400

• 1930s-Era House in Waynesboro – Sale Price $209,000, Tax Assessment Value $131,800, Difference $77,200

Mr. White went on to explain how the reappraisal process took place. An average difference between the sale prices and the assessment values was calculated, and this average determined the percentage of the reappraisal.

Property reappraisal cards will be mailed out to all Wayne County property owners on May 2nd, and two representatives from the State Comptroller’s Office will be at the Administrative Building from May 5th until May 9th to correct any errors on the cards. Examples of the errors considered would be any building on the property that has burned or been demolished, or any storm damage to the property not taken into consideration. White said that the state told him they were very confident in their reappraisal rates, and although they will listen to property owners’ concerns, it is highly unlikely they will agree to make any changes besides the ones listed.

After reappraisal cards are mailed out and State Comptroller representatives are finished speaking with property owners, the state will set a certified tax rate and issue it to the County Commission as well as the City Commissions in Waynesboro, Clifton, and Collinwood. Mr. White explained how the state reaches the certified tax rate, stating that they first look at how much money each city and the county needed to operate last year (2024). Taking into consideration how much reappraisals went up this year, they arrive at a number that will bring in the exact same amount of money the county and each municipality needed to operate last year. This ratio will actually result in a lower certified tax rate this year than last year.

At that point, the County Commission and each City Commission will look at their budget and decide if they will be able to operate on the same amount as last year, or if they will need more. If any commission as a whole agrees that they need more funds, they may choose to raise the certified tax rate issued by the state. In that scenario, a resolution to pass a higher certified tax rate would have to go through the normal process of two readings, and what the extra funds would be used for would be openly discussed and made known to taxpayers.

“I want to make it clear that the reappraisals are NOT meant to raise taxes,” said Mr. White. “The reappraisals are part of the normal six-year cycle mandated by the state, and this six-year cycle happens to include the huge jump in sale prices of homes and property over the last few years.”

Members of the audience voiced their concerns about the possibility of property taxes going up again. All agreed that buyers from out of state have been moving to Wayne County in droves over the last few years, and they are willing to pay what some consider astronomical prices for homes and property. Houses in Wayne County are selling now for hundreds of thousands of dollars more now than just five years ago, when COVID hit. In the world of real estate, we are definitely in a “seller’s market” as opposed to a “buyer’s market.”

Wayne County Commissioner Alvin Creecy was present at the meeting and said that he would be available to discuss anyone’s concerns about tax hikes. Emma McWilliams from The Wayne County News advised the audience to find out who their County Commissioners and City Commissioners are and to reach out to them with their concerns.

“I hope I have fully explained how and why the property reappraisal has taken place,” said Mr. White. “Once the certified tax rate is set by the state and presented to the county, it is up to the county and the cities to decide what they will do with it.”

The next town hall meeting held by Property Assessor Dustin White will be on Thursday, April 17th at 6:00 p.m. at Columbia State Community College in Clifton. The third meeting will be on Thursday, April 24th at 6:00 p.m. at Collinwood City Hall. Everyone is invited and encouraged to attend any or all of these town hall meetings to gain a better understanding of what the reappraisal means and what comes next with property taxes.