Rutherford County Adopts School Facilities Tax

Jun 23, 2021 at 09:49 am by WGNS

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Rutherford County, TN—Rutherford County Commissioners voted unanimously at Thursday’s County Commission meeting to adopt the “School Facilities Tax” in lieu of the Rutherford County Development Tax.

The change becomes effective July 1, 2021.

Under the Rutherford County Development Tax, Rutherford County currently imposes a tax on each residential development in the amount of $1,500.00. However, beginning July 1, 2021, and in lieu of the Rutherford County Development Tax, a School Facilities Tax of $1.00 per square foot will be assessed for each residential development project in accordance with the provisions of the County Powers Relief Act, T.C.A. § 67-4-2901, et seq. Fifty percent (50%) of the School Facilities Tax must be paid prior to a building permit being issued, and the remaining Fifty percent (50%) must be paid prior to the issuance of a certificate of occupancy.

“The County Commission and I have worked to find solutions to adding revenue to offset the demands upon the public school system caused by population growth,” said Mayor Bill Ketron. “The County Powers Relief Act gives us the ability to do that by implementing a ‘School Facilities Tax’. Funds collected by Building and Codes for the purposes of this tax will be used exclusively for funding capital expenditures for education.”

Ketron went on to say, “The County Powers Relief Act was a bill that I co-sponsored with Lt. Governor Ron Ramsey back in 2006, which gave counties the ability to opt into this act. We have been able to get by until now. With our heavy demand on growth, now is the time to use this option. We anticipate that this will bring in another $6 to $8 million for our schools.”

Rutherford County Schools Related Documents: 

• Exhibit 1: Schools Facilities Tax Collection Policy 
• Resolution: Rutherford County  
• Resolution: Adopting Collection Policy 
• Resolution: School Facilities Tax – Final 
• Exhibit A: Policy for Schools Facilities Tax Adoption 

Exemptions, application specifics, and information regarding adjustments and appeals will be available at http://buildingcodes.rutherfordcountytn.gov/. Information can also be obtained by visiting Rutherford County Building Codes (RCBC) Department located at 1 South Public Square, Room 101, Murfreesboro, TN 37130, calling (615)-898-7734, or emailing buildingcodes@rutherfordcountytn.gov.  

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