The city of Goodlettsville is asking voters to approve a half-cent sales tax increase, which officials say will help the city generate an estimated $3 million in annual revenue and reduce reliance on property taxes.
Billed as the “Goodlettsville Investment Act,” the ballot measure proposes a 0.50% local option sales tax increase, adding 50 cents per $100 spent to the final bill on taxable purchases made within city limits.
“Sales tax is not paid only by Goodlettsville residents, but also by visitors who shop and dine in our city,” a frequently asked questions page about the ballot measure on the city’s website reads. “This helps spread the cost of essential city services.”
City officials say the proposal is driven by an increased demand for city
services, inflationary pressure and a need to address aging infrastructure, public safety and rising construction costs. The city says priority investment areas using the funds generated by the tax hike, if approved, would include additional public safety staffing and equipment, improved pedestrian access throughout the city, and beautification improvements.
Here’s what else to know.
Why Goodlettsville officials are pushing for a sales tax bump
Keeping property tax rates low is a particular point of emphasis; the city’s FAQ notes that in its nearly seven-decade history, the property tax rate has only been increased three times.
“Our property tax rate is really low, and we want to keep it that way,” then-assistant city manager Julie High, who has since been promoted following the retirement of predecessor Tim Ellis, told the city’s board of commissioners during an Aug. 13 study session. “The city’s only had three property tax increases since its inception 70 years ago. Due to inflation, higher demand on our services, we feel like this would really help the city and protect our property tax rate.”
City officials also note that some neighboring cities have already adopted local sales tax bumps of their own. Voters in Hendersonville approved increasing their local sales tax rate to 2.75% in 2024, and White House has the maximum local option sales tax rate allowed by state statute.
But costs have risen meanwhile, as the city claims the cost of paving a mile of roadway has ballooned by 184% on average since 2019. A city spokesperson said the city arrived at that number by comparing the cost per mile for several 2019 paving projects with current costs, calculating the percentage increase for each and taking the average.
Goodlettsville is also in a rather unique position compared to most of the other cities that exist independent of Davidson County’s consolidated city-county government. It is one of only two cities with boundaries that cross county lines. The northern half of Goodlettsville sits in Sumner County.
That comes with another quirk: While the city’s current local sales tax rate is 2.25% in Sumner County, it’s already at 2.75% in Davidson County as a result of the half-cent transit surcharge voters approved in November 2024 to help fund Mayor Freddie O’Connell’s Choose How You Move transportation improvement program.
Although the state caps local sales tax rates at 9.75%, this ballot measure would bump the rate on the Davidson County side up to 10.25% if it is approved, making it the highest in the state. But High clarified that the city is allowed to exceed that state cap because Goodlettsville doesn’t receive a portion of the revenue generated from Choose How You Move’s surcharge.
“The proposed referendum would increase Goodlettsville’s local option sales tax rate by the same amount throughout the city, regardless of county,” High said. “However, because the Davidson County transportation surcharge remains in place, purchases made on the Davidson County side would show a higher total.”
Early voting remains open through Thursday, Oct. 29, with hours varied depending on the day and location, both here in Davidson County and in neighboring Sumner County.
Election Day is Tuesday, Nov. 3, when the polls will be open from 7 a.m.-7 p.m.
Austin Hornbostel is the Metro reporter for The Tennessean. Have a question about local government you want an answer to? Reach him at ahornbostel@tennessean.com.
This article originally appeared on Nashville Tennessean: Goodlettsville asks voters to support a sales tax hike. Here's why
