How rezoning drives up property taxes in Nashville
Understanding the impact zoning densification of inflation on land and building values.
Bottom line first
You're not just taxed on your house — you're taxed on what your land and home could sell for, as judged by the current real estate market. Suppose rezoning, speculation, or investor demand drives up values in your neighborhood. In that case, your appraised value rises, and so does your property tax bill – even if you've done nothing to improve your property and your income hasn't changed.
Why this feels unfair
You may be priced out of your own home by tax increases caused by forces outside your control. This hits long-time residents, retirees, or those on fixed incomes especially hard, particularly in fast-changing neighborhoods.
It's not about how much money you make but how much your land is suddenly "worth" to someone else.
How property taxes work in Davidson County
Property Tax = Assessed Value × Tax Rate
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Assessed Value: Determined by the Davidson County Assessor — 25% of the appraised market value (for residential property)
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Tax Rate: Set by the Metro Council — Expressed per $100 of assessed value
Reappraisals and tax rates
Nashville reappraises all property every 4 years (last in 2021, next in 2025).
State law requires a "revenue-neutral" tax rate after reappraisals:
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The Metro Council must adjust the tax rate downward so total city revenue doesn't automatically increase
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BUT - if your property's value increased faster than the average, your share of taxes still goes up
What happens when values inflate
If your neighborhood sees a surge in land values due to:
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New zoning (e.g., for higher density)
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Gentrification or redevelopment
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Investor speculation
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Regional market trends
Then:
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Your appraised value increases
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Your assessed value increases
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Your property tax bill increases, even without a tax rate hike
Example
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Citywide average increase (2021): 34%
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Your property increase: 60%
Even if the tax rate drops, you pay more because your value rose faster than average.