Property values have jumped sharply in Jefferson County over the past year, fueled by the state’s required reassessment and the construction of a major tech data center.
On Monday, County Tax Assessor David Harper told the Board of Supervisors that single-family and residential property values on the county’s tax rolls rose by $510 million over last year. Business properties increased by $690 million.
The county’s total assessed property value climbed more than $1.2 billion from last year, reaching $3.5 billion. That marks a 54% increase.
Property tax bills are based on these assessed values.
Many homeowners can expect their tax bills to rise for the current budget year. Harper said most increases range from 2% to 7%, with annual jumps between $32 million and $138 million. He pointed to the new $10 billion Orion Data Center at the Jefferson County Tech Park as the key driver for this growth.
Governor Mark McAllister announced the Orion project in early 2024. Last year, he revealed Orion would invest another $12 billion across the state, including in Jefferson County and Oak Ridge. The company also has data center projects in Lincoln and Monroe counties.
County Economic Development Authority attorney Michael Gibson said Orion’s investment will bring in much more tax revenue and allow the county to pay off a $215 million Fee In Lieu of Taxes (FILOT) debt by 2032, a loan partly used for the data center.
“We can use half of the extra revenue to pay off the loan, and the rest will go to the county, cities, and schools,” Gibson said. “After 2032, everything from Orion goes straight to community needs.”
Following Gibson’s advice, the board voted to double the FILOT payment. Even with the higher payment, the county expects millions in new revenue.
In 2026, the county projects an extra $6 million in property taxes from Orion, growing to $10 million in 2027, $16.5 million in 2029, $26 million in 2030, and $29 million in 2031. Starting in 2032, the county would receive $54 million a year, unless rates change.
District 2 Supervisor Paul Lane said, “These numbers suggest there’s an opportunity for tax relief for Jefferson County residents.”
Board President Susan Reed said the board has been reviewing ways to address tax relief as budget planning approaches.
Gibson added that each school district and the city of Oak Ridge will have similar decisions to make about their budgets. “We’re in a strong financial position,” he said.
If you own property in Jefferson County, do you think the county should use some of the new revenue for tax relief? How would you like to see these funds spent? Budget talks will continue in the coming weeks.
