Fore
Note: Below
is a statement from the Tellico Village POA on a proposed entrance tax
on all homes sold in the village. The tax would be $5,000.00 with few
exceptions. The POA attempted to implement a similar tax last year
without the knowledge of the village residents. That attempt was quashed
when word got out. The new tax will require special state legislation to
pass. As I understand it, state legislation is needed because without
it, it would take a 50%+1 vote of village residents to change the POA
governing documents. The $5,000.00 entrance tax will be on top of
paying, retroactively, the $80 water surcharge that could be hundreds or
thousands of dollars.
RESERVE FUNDING FEE PROPOSAL
Over the past two years, the POA has discussed a proposed Reserve
Funding Fee as
part of our financial planning for Tellico Village. As we move closer to
build-out, currently projected for 2029, our community's revenue
landscape is changing.
Why This Is Needed:
Currently, a portion of our revenue comes from new home fees. However,
this revenue source is declining as fewer homes are built each year. The
Reserve Funding Fee is designed to replace that lost revenue, contribute
to strengthening our reserves, and ensure Tellico Village's continued
financial stability.
This approach aligns with best practices in most master-planned
communities, including those in our region, which commonly have buy-in
fees as part of their financial models. This fee will also be a
substantial revenue source that current property owners will not have to
contribute to.
The Proposal:
After considering feedback from our initial community discussions last
February and after consulting with over twenty area Realtors, we are
proposing the following:
• A flat fee of $5,000, payable by the buyer at closing.
• There will be exemptions for current residents who buy another home
in Tellico Village after 24 months of residence and
property transfers to family
members, into or out of a trust, to an heir, or a business entity in
which the owner holds an ownership interest.
This proposal requires legislative approval, as it was not included in
our original governing documents. Our goal is to present this during the
2025 legislative session.
Upcoming Discussions:
This will be a key topic at the January Town Hall Meeting on Thursday,
January 9, at 3 PM. The Board will vote on the proposal at the January
15th Board Meeting.
We encourage your participation and feedback as we continue shaping this
vital initiative for the future of our community.
TVPOA |