News

County property tax increase derails city budget adoption

By Bill Moss, Published: June 4, 2026

It took less than 24 hours for Henderson County's 4-cent property tax increase and 18 percent law enforcement pay increase to ripple out to other local government. 

Hendersonville City Manager John Connet opened his 2026-27 budget presentation on Thursday with a recommendation that the council call a timeout on its adoption to give city staff an opportunity to analyze the impact of the county's tax increase and sheriff's office pay package on the city's revenue and expenses.

The $4 million pay increase in the sheriff's office could make the city is less competitive in recruitment and retention of law officers, and that's not all. The 10 percent increase in the county property tax rate also will change the distribution of sales tax collections, reducing the amount the city gets.

"The tax increase will have a dramatic impact in future years for us as it relates to the sales tax distribution that we get from the county," Connet told the council. "We also foresee potential other increases at the county level in future years, so from our financial modeling and forecasting, we want to take some time to look at those impacts as it relates to your budget.

"In addition, we are in a competitive market for not only police but fire and general employees, for that matter," he added. "We've had a strong reputation and strong practice of taking care of all of our team, and so looking at that potential increase on the sheriff’s office and how that impacts our team, we need to have some discussion about that and give you some options to consider for years going forward.”

The proposal by the state Legislature to put a property tax rate cap on the Nov. 3 ballot adds one more layer of uncertainty.

"We knew we had one headwind with the constitutional amendment but you add the other two and we want to take a little bit of time" to analyze the impact, Connet said. "Nothing may change from this proposed budget but there may be some add recommendation. My commitment is any potential changes will be very transparent. It will be released to the public before the council's June 24 meeting."

Connet's recommended budget of $75.41 million keeps the tax rate at 52 cents/$100 assessed value, although that could change if the council decides to match or otherwise react to the county law enforcement. 

News of the county's budget short-circuited discussion by city council members, who made no comments after Connet recommended that board revisit the spending plan when it meets at 4 p.m. Wednesday, June 24.