The Williamson County Association of Realtors (WCAR) and the Homebuilders Association of Middle Tennessee (HBAMT) strongly oppose a proposed impact fee on new home construction.
The issue is set for consideration at the Nov. 14 meeting of the Williamson County Board of Commissioners.
For a break down of the proposed fees, click here.
“We take this matter very seriously,” they said in a joint press release. “If the impact fee is approved, we can assure you our groups will be exploring all available legal options to challenge it in the courts.”
The revenue generated from the impact fee would go to fund local school capital projects.
“WCAR strongly supports our local schools,” said WCAR President David Logan. “We think Williamson County Schools are the best in the state and we support the local school boards, Dr. Mike Looney and Dr. David Snowden. Our REALTOR® Good Works Foundation also provides college scholarships to our Williamson County students. Realtors know our Williamson County schools are a major reason people want to move here and want to be part of our community.”
“But it’s unfair for new homebuyers to shoulder all this additional burden by themselves, especially since it appears the impact fees collected in one part of the county can be spent on projects in other parts of our community.”
“Based on the average square footage of the new homes built in our county this year (2016), we estimate this proposed fee will add $10,000 in additional cost to anyone buying a new home in our community,” said John Sheley, executive director of the Homebuilders Association of Middle Tennessee.
“For Williamson County to continue to be successful, we must continue to grow. This impact fee proposal will do the exact opposite of that. It will make homes less affordable and discourage people from moving here.” Sheley added.
WCAR and HBAMT point out:
Over the past 12 years (2003—2015), Williamson County tax revenues have grown four times faster than the population. That’s comparing revenues reported in the County’s Comprehensive Annual Financial Report and U.S. Census data:
2003: Population 141,301 County Revenues $237,856,541
2015: Population 211,672 County Revenues $761,327,842
Percent Increase: 49.8% in Population versus 220% in Revenue Growth
“We have all recently seen a double-digit increase in our property taxes due to the latest county-wide property re-appraisal and the adjustment of the tax rate. These added taxes and fees also add to our county being a less-attractive place to live,” said Logan.
According to WCAR and HBAMT officials, the further irony is that county leaders have granted property tax incentives to several major companies to relocate and make major investments in Williamson County (Nissan & the Lee Company, among others). Yet when their workers try to follow them here, they will find much more expensive new housing here and therefore might wind up living in an adjoining county instead, creating further traffic and congestion in Williamson County.
The groups shared their concerns with Williamson County State Representative Charles Sargent.
Representative Sargent, in turn, has now asked the Tennessee Attorney General’s office to explore several areas of existing state law. That includes questions about the legality of the impact fee being enacted under private acts passed by the Tennessee General Assembly in 1987 and the current adequate facilities tax.
Representative Sargent is also asking the Attorney General’s office for an opinion on whether the existing Vested Property Rights Act requires that all new homes being constructed in a subdivision, which has a previously approved preliminary development, be exempted from the new impact fee. This is a matter that could seriously impact the amount of revenue this new tax might generate.
On Monday, November 7, the WCAR and HBAMT requested that the County Commission committees defer this impact fee proposal until the Attorney General can review the matter for its legality, but no such action was taken.
