Chattanooga, TN – On July 29, 2025, the Kelly Administration introduced a supplemental budget proposal that aims to significantly raise pay for Chattanooga’s police officers and firefighters while cutting the city’s property tax rate from $2.25 to $1.99 per $100 of assessed valuation. The plan also accounts for 22.5% inflation since the city’s last revenue adjustment in 2021.
If approved, the proposal would mark the largest property tax rate reduction in Chattanooga in decades. Residential properties are assessed at 25% of appraised value, while commercial properties are assessed at 40%.
“This is a balanced proposal that funds police and fire pay raises and critical government services like road paving while making a historic cut to the property tax rate,” said Mayor Tim Kelly. “We have a generational opportunity to ensure Chattanooga is the city of its full potential—a city with safe neighborhoods, good roads, and the best quality of life. If we fail to act accordingly, we will lose our great momentum and fall further behind.”…