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Hendersonville moves to charge home builders while developers suggest property tax hike

HENDERSONVILLE, Tenn. (WZTV) — The city of Hendersonville is growing, bringing more development and a need to improve infrastructure like roads.

Aldermen, including Mike Martin, are proposing that developers be charged to help fund that infrastructure.

“We don’t want to raise taxes. We wanna find other ways to raise revenue,” Martin said.

Alderman Mike Martin of Hendersonville. (Photo: WZTV)

Alderman Mike Martin of Hendersonville. (Photo: WZTV)

The proposal comes as the Home Builders Association of Middle Tennessee’s attorney, through a letter, suggested the city raise property taxes instead.

Chris Rhatigan owns a home in Hendersonville.

“What do you think if property taxes were raised instead of charging developers?” FOX 17 News asked him.

“With the price of everything else that has gone up, it’s just something else we have to pay into,” Rhatigan said.

Tuesday night, Martin and other aldermen considered two impact fee proposals: one charging developers who wish to build homes and another charging developers who build commercial properties.

The home-building measure passed on its first reading.

If the ordinance fully passes, impact fees would be $3,500 for a single-family home and $2,500 for a multi-family home for 2026, then go up incrementally from there.

The measure to charge commercial properties failed.

Developers have expressed concerns that impact fees would impact growth.

Rhatigan tells FOX 17 News he believes Hendersonville is overdeveloped.

Chris Rhatigan, a homeowner in Hendersonville, speaks with FOX 17 News. (Photo: WZTV)

Chris Rhatigan, a homeowner in Hendersonville, speaks with FOX 17 News. (Photo: WZTV)

“If we had impact fees, it would have kept a lot of what’s been done from happening,” he said.

FOX 17 News called the Home Builders Association of Middle Tennessee for two days and sent an email regarding its suggestion that the city raise property taxes instead of adding impact fees.

There was no response.

FOX 17 News also called the group’s attorney, who was unavailable for comment.

The home-building impact fee still needs to go through a second reading before it becomes local law. This will be held on Jan. 27 at the Board of Mayor and Aldermen meeting in Hendersonville.

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