The People News, a free newspaper serving Cleveland Tennessee (TN) and Bradley County Tennessee (Tn).





Of Bradley County Tn.


AUGUST  2005

                            The People News, a free newspaper serving Cleveland and Bradley County Tn.

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Pettus Read

Zero Property Tax Achieved

Spring Hill first city to propose zero property tax
after enacting Taxpayer Bill of Rights

by Pete Edwards

Spring Hill, Tennessee. On July 18th, Spring Hill Mayor Danny Leverette, stunned

the audience attending the Board and Alderman meeting by proposing a zero property tax rate for the city located forty miles south of Nashville. The announcement was the culmination of a five year quest to reduce taxes. Leverette is continuing a trend begun by the late Mayor Ray Williams in 2000 when he vowed to eliminate the city's property taxes. At that time, the rate was 41 cents per $100 assessed value on the city's Williamson County side and 38 cents per $100 assessed value on the Maury County side. As reported in the Tennessean, over the next four years, Williams took the rate down to its current rate of 19 cents on both sides of the city. But Williams died of a sudden heart attack in January, before he could accomplish his goal.

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"I can happily say, we have enough money (in our budget) to go from our 19-cent rate to zero cents here in the City of Spring Hill,'' Leverette said. "To be able to do this in one fell swoop is quite astonishing.''

Mayor Williams effort to ease the property tax burden on the citizens of Spring Hill began with the passage of  a resolution called the Taxpayers' Bill of Rights. The Columbia Daily Herald reported that the resolution, which was passed by the mayor and board of aldermen, states that the board may not increase property taxes in the city without approval through a public referendum.

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In addition, any funds remaining in the general fund will be returned to the citizens through a lowering of the amount of property tax each citizen would be required to pay.

The resolution passed by a vote of 7-1 with Alderman Bruce Scotten voting against it.

''I see this as a goodwill gesture,'' Scotten said.

''You're right, Bruce,'' the mayor responded. ''It does feel good.''

Pro-referendum supporters jumped to their feet and applauded.

Objecting to the passage of the resolution was Ross Loder, Deputy Director of the Tennessee Municipal League, an association representing municipal public employees organizations.

''Oak Ridge attempted something similar in June, but the residents voted it down,''
''With this being in the form of a resolution, it is something that can be undone by a subsequent council,'' Loder said.

In 1992, the state of Colorado adopted a similar Taxpayers Bill of Rights as part of

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Would you support the City of Cleveland, Tennessee, enacting a Taxpayer Bill of Rights similar to Spring Hill's and reducing its property tax rate to zero over the next five years?

its charter. No other state, county, or municipality in the United States has adopted similar legislation since.

Williams said letting Spring Hill's citizens vote on whether the city should raise taxes is a concept, that while novel, is long overdue.

Quoted in the Franklin Review-Appeal, Williams said, "I've been researching it for about two months,"  he said he received inspiration for the idea from organizations such as the National Taxpayers Union and Tennessee Tax Revolt. "We want the people to have a say so, not the fat cats and politicians."

"We've run this city as a business," Williams said. "Our board is very conscientious; we realize this is the people's money."

Williams said he was convinced that incorporating the Taxpayers Bill of Rights would not hamstring officials if Spring Hill ever experienced a tense economic climate.

"I feel if there were a major crisis, I'm sure our board could convince the taxpayers," he said. "If they couldn't, then we probably wouldn't have a good reason for raising taxes."

Seeing taxes being raised all around him, Williams said he would love to see other cities use Spring Hill's system as a model.

"Definitely, we would love for this to be something that spreads across the state and nation," he said.

When the bill was passed in Colorado, Democrats fought its implementation, but the measure passed with 53% of the vote. In 2000, the state's voters approved the use of some of its budget surplus for education needs instead of tax refunds.

Williams noted that Spring Hill has been able to provide increased services such as the building of a new water treatment plant and expansion of the city's sewer treatment facility, all completed while the tax rate was lowered.

"We've also built a million dollar fire hall, paved the streets, gotten a new library, put in streetlights, all the while lowering the taxes," Williams said. "It all comes back to money management."

Mayor Leverette said it is something that will force the board to look for new solutions if the city faces a financial crisis besides just raising taxes.

Leverette went on to say that if the need to raise taxes did arise, it would be up to the aldermen to make a solid case to the citizen and get their approval.

Maury County Commissioner Joe Roberson was one of three commissioners in attendance.

Roberson said he welcomed the change in attitude toward taxes and hopes the county commission may consider something similar before next year's budget debate.
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The People News
PO Box 3921
Cleveland TN. 37320
(423) 559-2150  Fax 559-1044

Editor-Publisher, Pete Edwards
Copyright 2005 (All rights reserved)

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