LINCOLN COUNTY, Tenn (WHNT) — After months of back and forth between leaders, Lincoln County residents are set to see a 37% property tax increase.

With a change in the tax rate for property owners in Lincoln County, some say this new reality could do harm fearing they could lose their homes.

Residents previously paid $2.10 per $100 of assessed value, and the assessed value is 25% of the appraised value. This means you would multiply 0.021 by the assessed value of the property to get the amount of tax to be paid.

The new tax increase will make the cost $2.88 per $100 of assessed value meaning you’d multiple 0.028 by the property’s assessed value.

That means if a property’s appraised value is $100,000, its assessed value is $25,000. A resident would pay $525 in property taxes under the current rate. However, with the new rate, their new property tax is $720. Residents can use this formula to see how much more they could be paying.

Some members of the Lincoln County community like David Owens believe the new rate will have a negative impact on their households.

“It’s just like me myself me and my wife is on a fixed income you know and its another $500 added on this year is going to hurt us,” Owens told News 19.

Built in 1959, Highland Rim in Lincoln County has reportedly been falling apart, with asbestos in the walls of the school. Lincoln County Mayor Bill Newman says they’ll use the new funds from the higher property tax to finally upgrade the school.

“At this rate we’re probably going to be able to build the new Highland Rim School that’s probably the biggest positive out of it that came out education is the winner,” Newman said.

Over the past couple of months, there have been multiple attempts to pass a new budget with a tax increase. However, some residents like Don Jenkins say most of the community is living on a fixed income and fear some of his neighbors could lose their homes.

“Yes it’s going to do harm not there’s no need for a property tax increase several ladies have told me that ‘we can’t do this we could easily lose our home,'” Jenkins said.

The new property tax rate will go into effect immediately.