|Back in 2006, the Loudon County Commission passed the Adequate
Schools Facility Tax (ASFT). The tax would be one dollar per square foot
on all new residential construction. This came at the peek of the real
estate boom in Loudon County. The idea of the tax was that it would help
offset some of the costs experienced by the schools brought on by all
the new development in the county. Since it's adoption, the (ASFT) has
in fact generated nearly four million dollars for the schools.
The problem with any tax passed and collected by government, sometimes it goes further than it was suppose to. The ASFT was suppose to be collected on new residential construction. The intent of the legislation was that the tax would be paid on new home construction that many times would be new homes for children moving into the school system. Thereby, the new residents would be contributing a little extra to the schools.
As the process of collection the tax got underway, not only was it being collected on newly constructed homes but was interpreted locally to also be collected on additions to existing homes. This was never the intent of the tax. Adding an addition or bathroom to an existing home does not impact the school system.
Last month, the county commission voted to end the practice of collecting the ASFT on any existing home new additions. Hopefully, this will allow county officials to better collect the tax as it was meant to be and take a little burden off current Loudon County residents.