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Many of our elected officials have requested information regarding the financial realities associated with the recently proposed development restrictions. While these amended regulations address specific aspects of subdivision development- fire protection, road width, responsible planning- there is also a direct economic impact that new developments will generate, and citizens and our elected leaders must weigh these factors when evaluating policies that will shape the future identity of our community.

Sadly, a wealth of false equivalences and misinformation has been readily presented on Facebook and other forms of social media. While snappy graphics and carefully curated talking points many enflame readers, they have been rather light on the truth and devoid of reliable data. We would like to present some facts- not from a vague “multiple studies have shown” perspective- but from our very own tax assessor’s office in Coffee County.

At the heart of this argument has been a piece of heavily circulated misinformation related to tax revenue generated by new developments and its inability to cover the public services these new rooftops will require.

“Studies consistently show that for every $1 collected from residential development, counties spend between $1.16 and $1.50 providing services like schools, roads, emergency services, and utilities.” 

Let’s use real Coffee County numbers to see if this tells the whole story.

In 2023, the last year where we have full reports, Coffee County brought in $37,144,798 in property taxes. Of that total, $22,455,492 was from residential development or residential property tax. To believe the Facebook Math, that $22 million would then have to cover schools, roads, utilities and emergency services for the entirety of a growing population.

But that is simply not true.

Residential property tax alone does not cover the full cost of schools. Coffee County Schools are funding from a variety of local and state revenue sources.

Residential property tax alone does not cover the full cost of roads. Paving, maintenance and upkeep are paid for by the gas tax.

Residential property tax alone does not cover the full cost of emergency services. Ambulance service, Sherriff’s Department and our Fire Department are paid for out of a county general fund.

Residential property taxes alone do not cover the full cost of general utility operations. These costs are paid for by the utility company, current and future customers, and developers who have historically paid for necessary infrastructure upgrades that service new developments.

In reality, residential property tax is only a portion of the story. In 2023, Coffee County generated an additional $14,689,305 in commercial/industrial property tax and $39,713,989 in sales tax- both of which illustrate the key role growth, development, and financial well-being play in our community. While not all sales tax stays at the local level, of the 9.75% local sales tax burden, 2% comes back to the county coiffeurs, the Facebook Math ignores $8,146,459 that does help fund some of the key services that are listed above.

Overall, residential property tax represents slightly less than 50% of the total tax revenue needed to fund services. That’s like trying to buy a dollar’s worth of service for fifty cents.

So, what’s the plan?

Our local Planning Commission shared their thoughts on the subject at the 1:15:59 mark of their January 29, 2025, meeting: “We cannot stop subdivisions. I don’t think. We’ve got to do some research on that.

But we can make it harder for them.” You can hear it for yourself on the Coffee County Tennessee Government YouTube Page. 

That’s not a plan. That is a short-sighted reaction that limits the freedoms of landowners, reduces property values, and creates more problems than it will ever solve.

The financial facts are that commercial development and retail sales supply half of Coffee County’s taxbase. If those are stymied, if new businesses and job creators pass us by, the financial burden falls more squarely on the current residential taxpayers. If multiple drivers of tax revenue (industrial and sales tax) are stopped, the other lever (residents) will have to work overtime to make up the difference. This ultimately means less for all.

So, are you ok with Facebook Math? Are you ok with moratoriums and shutdowns? Are you ok with our community missing out on opportunities?

Are you ok with ok?