Now Is The Time To Demand Tax Relief, And Here Is How

In a recent press release, I commended the local governments that have enacted the property tax freeze for senior citizens. However, I need your help to encourage the other counties and municipalities in Tennessee to adopt the program. We should not rest until they all see that this plan is simple, affordable, and makes sense. The people must let their local elected officials know that tax relief is necessary. I ask that YOU, the people, contact your County Commissioner and/or City Councilman or Alderman today and let them know that the property tax freeze is awaiting their action to benefit you and your neighbors.

To find the addresses of your city and county officials, you can look them up at the following web sites:

For city/municipal officials, click here.

For county officials, click here.

Time Is Now for Property Tax Relief

by Senate Majority Leader Mark Norris

The Property Tax Freeze Act of 2007 is now law, and it is time to urge your local elected officials to adopt it.

For the first time in Tennessee history, 65 year olds earning less than the County’s median income for 65 year olds and older can qualify to have their city and county property taxes frozen against future increases – whether from reappraisals, reassessments or outright tax hikes.

There’s just one thing. Your city council or county commission must vote to participate in the program first. Property tax relief is available beginning January 2008 for those who act now.

For over six years, I lead the effort to amend our State Constitution to make it easier for senior citizens to keep their homes in later life. I believe seniors on fixed incomes should not have to sacrifice buying prescription medications just to pay increased taxes, nor should they otherwise worry over how to make ends meet without selling their home.

1.3 million Tennesseans supported my efforts last November when 83% voted in favor of Amendment 2. This year, with a clear mandate, we codified the procedure making the Property Tax Freeze Act reality.

Regulations governing the tax freeze will be adopted by the State Board of Equalization on September 17, 2007. But the Attorney General recently ruled that counties or municipalities may adopt the tax freeze even before the regulations are promulgated. Davidson County has already done so.

That’s why I am writing now; to encourage you to urge your city council members (if you live in Memphis), aldermen if you live elsewhere, and county commissioners to participate. Now is the time to ask candidates for election to city boards in upcoming elections whether they will vote to participate in the property tax freeze for seniors.

Some younger elected officials in Memphis don’t seem to care about tax relief for seniors. One was recently reported to have said, “I’m a long way from 65, but I have two kids to raise.” He worries what additional cost he might bear. But a recent study by the AARP Public Policy Institute confirms that senior citizens in Tennessee bear the brunt of the property tax burden.

With increasing emphasis on home and community based care, it only makes sense to do everything we can to respect the dignity and independence of our seniors by helping them keep their homes.

For more information on the Property Tax freeze Act and how to qualify, visit www.Tennesseniors.com.

The proposed Rules governing eligibility and enforcement under the Property Tax Freeze Act will be considered on September 17, 2007:
Click here to read the Notice of Rulemaking Hearing Tennessee State Board of Equalization

Complete Text of the Property Tax Freeze Act - PUBLIC CHAPTER NO. 581 PDF

Attorney General's opinion March 23, 2007 PDF
Attorney General's opinion July 17, 2007 PDF Introduction to the Property Tax Freeze
June 18, 2007

Background

In November 2006, Tennessee voters approved an amendment to the Tennessee Constitution authorizing a property tax freeze for elderly homeowners. This amendment to Article II, Section 28 of the Tennessee Constitution gives the General Assembly the authority by general law to authorize counties and municipalities to implement a local option property tax freeze for taxpayers 65 years of age or older.

In its 2007 session, the 105th General Assembly enacted the Property Tax Freeze Act (Senate Bill 2 / House Bill 1033) which establishes the tax freeze.  Under the Act, the legislative body of any county or municipality is authorized to adopt the property tax freeze program. The Act becomes effective on July 1, 2007.Provisions

Homeowners qualifying for the program will have the property taxes on their principal residence frozen at a base tax amount, which is the amount of taxes owed in the year they first qualify for the program. Thereafter, as long as the owner continues to qualify for the program, the amount of property taxes owed for that property will not change, even if there is a property tax rate increase.

In order to qualify, the homeowner must file an application annually and must:

• Own their principal place of residence in a participating county and/or cityBe 65 years of age or older by the end of the year in which the application is filed
• Have an income from all sources that does not exceed the county income limit established for that tax year

In counties and municipalities participating in the Tax Freeze Program, application may be made to the county Trustee or city collecting official.

The state Comptroller’s Office will calculate the income limit for each county annually using a formula outlined in state law.

Situations where the base tax amount would change for a homeowner are:

• When improvements are made to the property resulting in an increase in its value
• When the homeowner sells their home and purchases another residence

The tax freeze is available only on the principal place of residence of the qualifying homeowner located in a participating county or city. There are limitations on the amount of land that can be included for residential purposes in the program, and the program does not apply to portions of the property not used for residential purposes.

Tax Freeze Income Limits 2007 PDF     Tax Freeze Income Limits 2007 Map PDF