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Nashville's tax surge threatens music‑city businesses

Financial Times Companies •
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Tom Morales, longtime operator of Nashville’s Acme Feed & Seed, expected to pass the music venue to his daughter when a city notice revealed his property tax had leapt from $129,000 to $589,000. The 380‑percent surge shattered the family’s retirement plan, prompting his daughter Lauren to warn that the rise could “ruin their lives.” Morales, who ran the venue for decades, said the tax hike threatens the generational hand‑off that many small‑business owners rely on.

Property assessments in Davidson County have surged; assessors valued Morales’s building at $9.6 million in 2021, then jumped to $50 million this year, driving the tax bill skyward for many small landlords. Owners of bars and restaurants along Lower Broadway report rent hikes that mirror the tax surge, squeezing profit margins.

City leaders acknowledge the pressure: Mayor Freddie O’Connell calls the valuation surge “extraordinary,” while Democrats warn that reliance on sales tax pushes the burden onto working families. A coalition of 287 businesses, led by co‑working space owner Christian Paro, is lobbying for a reassessment overhaul, arguing that without relief Nashville’s economy could wither. The music‑city brand, worth $15.6 billion annually, erode if artists are priced out.