Nashville Businesses Sound Alarm Over Surging Property Tax Bills

Nashville Businesses Sound Alarm Over Surging Property Tax Bills

Reporting credit: WPLN News first reported this story.
More than 100 Nashville businesses have joined forces to push back against property tax bills they say are threatening their survival — a pressure point that traces back to last year’s countywide property reappraisal, which saw a median value increase of 45%.
The coalition includes some of Nashville’s most recognizable independent names: Turnip Truck, Bongo Java, 3rd and Lindsley, Otaku Ramen, and Acme Feed and Seed, among others. Christian Paro, owner of the co-working space Center 615, is leading the effort — and says the issue hit close to home.
“I couldn’t actually afford my tax bill,” Paro said. “And I consider myself a 21-year resident of Nashville who pays his taxes.”

What the businesses are asking for
Many coalition members have filed appeals contesting their property valuations. Their requests focus on reforming that process — including expanding the Board of Equalization to speed up hearings, and requiring the board to use an income-based valuation approach grounded in actual market conditions rather than speculative redevelopment projections.

Davidson County Property Assessor Vivian Wilhoite responded by noting the boundaries of her office’s authority, writing that requests such as payment adjustments or extensions tied to pending appeals fall outside what her office is legally empowered to do.
Mayor Freddie O’Connell’s office has taken some steps, including adding alternates to the Board of Equalization to keep hearings moving. But O’Connell has repeatedly returned to a core argument: rising tax bills reflect rising property values.
“The only time when property taxes are increasing right now is if their property values have increased substantially,” O’Connell said last week.
Business owners like Paro reject the framing that higher valuations are inherently a good thing. Many feel they’re being nudged toward selling rather than continuing to serve their communities.
“Indirectly, both the assessor and the mayor’s office seem to be communicating, ‘You should just sell your building because it’s worth more,’” Paro said. “There are a lot of businesses out there, whether tenant or owner-operator, that would like to continue serving the neighborhoods in which they exist.”
Peter Kurland, owner of Dark Horse Theater, made a similar case on This Is Nashville last week, noting that his property tax bill now exceeds his theater group’s entire annual operating budget. “Those building valuations don’t mean anything unless we want to sell the building,” he said.
O’Connell indicated that most property tax relief programs are administered at the state level and are largely limited to elderly residents, low-income households, veterans, and people with disabilities.

A state-level battle
At the Tennessee General Assembly, lawmakers are weighing legislation that would cap how much localities can raise property taxes following a reappraisal. Several bills are in play this session. One, sponsored by Sen. Bo Watson and Rep. Jason Zachary — with backing from House Speaker Cameron Sexton — cleared an early committee hurdle this week.
Watson argues the cap would give property owners a degree of predictability in an era of rapid appreciation.
“When you live in a state that everybody wants to move to, property values are going up, and it creates even more of a need to have some level of predictability,” he said.
The bill originally proposed capping increases at 2% above inflation. An amendment advanced this week by Zachary raised that figure to 3%, and Watson says he remains open to further adjustments.

Local government officials are alarmed. Mayor O’Connell called the legislation “devastating” in its current form, saying he’s heard the same from mayors across the state. Leaders from the Tennessee Municipal League and Tennessee County Services Association testified against the bill in committee this week.

David Connor, executive director of TCSA, noted that property tax is the primary revenue source for most county governments — funding teacher salaries, sheriff’s deputies, emergency services, and mandated programs.
Chad Jenkins of the Tennessee Municipal League added that the sales tax, the other major local revenue stream, is already capped and split — with less than half the revenue staying at the local level.

Watson was unfazed by the opposition: “All the people that tend to be against this are representing government, not the individual citizen.”
What’s at stake
For Paro and the coalition, the goal isn’t to eliminate property taxes — it’s to avoid the kind of sudden, compounding increases that make long-term planning impossible.
“I feel like it’s local, cool, weird businesses that make neighborhoods and cities cool,” Paro said. “I could go to a Cheesecake Factory anywhere. But can I go to Bongo Java anywhere? No.”
Watson’s bill is scheduled for a House Committee hearing on March 11. In the meantime, business owners say time is running out for the independent establishments that give Nashville its character.​​​​​​​​​​​​​​​​