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Location: Nashville, Tennessee, United States

2/28/2003

Oak Ridge Reaction
The Oak Ridge newspaper is reporting on the Attorney General's opinion that removes a large obstacle to amending the Oak Ridge city charter to include a Taxpayers Bill of Rights that will give voters a say in future tax increases. Already, the entrenched powers in Oak Ridge are trying to say the opinion doesn't really say what it clearly says.

The opinion says:

Since Tenn. Const. Art. XI, § 9
allows a home rule municipality to amend its charter in any way that does not conflict with general law or increase its power of taxation, and since the property tax laws do not preclude a city from modifying the procedure under which they are levied, a charter amendment which mandates that the city’s voters must approve by referendum all increases in the city property tax rate would be permissible.

And later it says:
The Constitution allows a home rule municipality to address in its charter the manner in which city tax rates are to be increased. Accordingly, it is the opinion of this Office that a home rule municipality may amend its charter to provide that a proposed increase in some city tax rates will be effective only upon ratification by a majority of the city’s qualified voters at a referendum election. But such a referendum requirement cannot necessarily be applied to some important city taxes that must be levied only in conformity with express statutory mechanisms.

Yet some members of the Oak Ridge city government, including city attorney Ken Krushenki, city council member Leonard Abbatiello and Mayor David Bradshaw are saying the opposite:
Krushenski, in a Feb. 21 letter to City Council, said the opinion appears to apply to "only home rule municipalities that do not have a procedure or municipal body in place for adoption of a tax rate." He added, "I anticipate that further research into the impact of the opinion and its effects on home rule municipalities will be forthcoming from this office."

City Council member Leonard Abbatiello said Thursday that he thinks this is a "non-issue" and that it is the responsibility of council to set the tax rates.

Bradshaw said that at first glance the opinion "appears to only apply to cities that don't have a statutory direction on how to set tax rate. "I know Oak Ridge does have a statutory process it does follow, and I imagine other cities do too. My first reaction is that this may be a general opinion that may have limited applicability."

Oak Ridge residents pay the second-highest property combined city and county property taxes in the state, behind only Memphis. And some people would like to keep it that way.