Homestead exemption gives seniors a break

Robertson County Times
September 25, 2006

Local property taxes put a strain on many households, but the burden on senior citizens on fixed incomes is particularly onerous.

On Nov. 7, Tennessee voters will have the chance to ease that burden for seniors in the future by voting yes on a constitutional referendum to allow a homestead exemption in Tennessee.

A little history is in order. In 1979, the General Assembly passed a law that allows local governments to reduce the tax bills of senior citizens. The following year, the law was declared unconstitutional. In 2004, Sen. Mark Norris, R-Collierville, began pushing a constitutional amendment that would give local governments some leeway to ease property tax bills of seniors. Both the House and the Senate passed the proposal with overwhelming margins.

The referendum would not force local governments to participate in the homestead program. Each city or county would decide whether to participate. But in the participating areas, homeowners over age 65 would have their property taxes frozen: They would still pay property tax, but they would not be charged increases that become effective after their 65th birthday.

The homestead exemption would not apply to wealthy homeowners: Instead, the state legislature would establish an income threshold for the tax break. It also would not apply to any property other than a taxpayer's primary residence.

The referendum's obvious pitfall is the loss of tax revenue to local governments, most of which depend heavily on property tax. Since state lawmakers have put this highly popular referendum on the ballot, they should also give local governments a break by giving them more leeway to chart their own course of revenue.

But the referendum has an up- side for local governments. Currently, the biggest worry before a city raises property taxes is the impact of the tax increase on seniors on fixed incomes. The homestead exemption will erase much of that concern.

Seniors on fixed incomes need a break on property taxes. State voters can given them one Nov. 7.

Mark Norris Official Web Site

Mark Norris Personal Web Site

Tennesse Senate Republican Caucus

Senator Mark Norris
303 War Memorial Building,
Nashville, Tennessee 37243-0232
Phone 615-741-1967
1-800-449-8366

Email: Sen. Mark Norris