The Germantown Board of Mayor and Aldermen (BMA) has given the preliminary nod to a revised property tax rate for the upcoming fiscal year. Yesterday, the BMA passed the first reading of a new proposal that, pending further approval, would adjust the tax rate in accordance with recent property reappraisals by Shelby County. The adjustment abides by state law, which prohibits municipalities from gaining additional revenue through assessments alone, as per the City of Germantown.
As it currently stands, the tax rate in Germantown is $1.8382. However, due to the reappraisal, the rate is slated for a reduction to $1.4797 before adjustments. This cut aims to reflect the actual market value of properties without inflating city revenue unfairly. Factoring in an allowance of $0.0190 for potential appeals, which is typical in these scenarios, the certified rate would be $1.4987, according to the municipal announcement.
Despite these reductions, the City is proposing an increase of $0.2913 over the adjusted rate, bringing the potential property tax rate for Fiscal Year 2026 to $1.79. The rationale for this increase hinges on sustaining public services and funding various city projects. The additional revenue would go towards public safety, infrastructure, and quality of life initiatives, as well as supporting the Germantown Municipal School District.
The revised rate has already gained approval from the Shelby County Assessor’s Office, with the State of Tennessee's endorsement still pending. A public hearing is scheduled for June 9 to provide residents with an opportunity to voice their opinions on the budget. In addition, the "Citizens to be Heard" segment at each BMA meeting continues to serve as a platform for public commentary and engagement on issues within the community, including the property tax rate.
