‘We Must Raise Property Taxes,’ Mayor Says in State of Metro

Mayor John Cooper’s budget proposal for next year will “sharply increase” Nashville’s property tax rate as the city expects to lose hundreds of millions of dollars in revenue due to COVID-19.

Cooper laid out his plan Tuesday morning in the State of Metro, which he delivered to a near-empty Metro Council chamber. With a priest, Vice Mayor Jim Shulman, Council President Pro Tem Jeff Syracuse and a pool photographer in attendance, Cooper called the speech “the most unusual State of Metro in our history.”

Not only were the circumstances of the address unpredictable a month ago — the substance was too. Instead of scolding past city leadership for poor financial decisions (though he did get a few hits in) and laying out a plan of neighborhood investment, Cooper instead spent much of his time informing residents about city resources for food, shelter and medical treatment.

The mayor did not deliver his final budget proposal on Tuesday, as was originally planned, but he will do so by the end of April. He and his finance team are still trying to determine what the tax revenue fallout from COVID-19 shutdowns will be, but an early estimate indicates that sales tax revenues could be down between $200 and $300 million in the fourth quarter of the fiscal year alone. The Metro Council will either approve the mayor's budget or pass its own.

To combat the lost revenue, Cooper has announced a hiring freeze and other immediate cost-cutting measures, but the mayor said that won't be enough.

“Metro’s finances are in a place where there is no option,” Cooper said. “We can’t print money or borrow to cover our operating expenses. We must raise property taxes.”

Cooper has long opposed raising property taxes, including during his successful mayoral campaign last year and during his four years as a member of the Metro Council. But he said the combination of the impact of the March 3 tornado, COVID-19 and Metro’s pre-existing financial state make the move necessary.