Seniors' tax break - not law, yet

By AETNA SMITH, The Jackson Sun
November 14, 2006

Joseph H. Davis said the constitutional amendment that could potentially freeze property tax rates for seniors was an easy "yes" vote for him on Election Day.

And a smattering of Madison County commissioners and Jackson city councilmen tended to agree with him, saying last week that they'd likely support such a measure if passed by the state legislature.

While running some errands at the Madison County Courthouse, Davis, 78, said he pays about $185 a year on property taxes. The Jackson resident said he draws Social Security and Veterans Administration benefits.

He voted for the amendment because it could have a positive effect on him and, he said, "I've got friends on a fixed income."

The passage of the amendment last week - with an 83 percent approval by voters statewide - sets the stage for the General Assembly to enact legislation that could freeze property taxes for residents 65 years old or older. If such legislation is approved, it would be up to local governments to decide whether to approve the tax cap for their residents.

Now that the amendment has passed, it could still take a year or more before the break is passed on to seniors.

Any law providing relief likely would be applied only to a primary residence and not second homes or resort or rental properties, said state Sen. Mark Norris, R-Collierville, the amendment's sponsor.

Currently the state constitution prohibits discrimination when counties and city governments apply property taxes. But the amendment inserts language that would allow local governments to exempt homeowners 65 years old or older from year-to-year increases in property taxes.

While Patsy Ruth Ellis, 63, isn't quite 65 and doesn't own property, she voted for the amendment.

"I think senior citizens need a break," she said, while conducting some research on a computer at the Jackson-Madison County Library. "Most of the them live on fixed incomes."

County Commissioners Katie Brantley, "Smokey" Joe Roland, John Newman and Barbara Maness Johnson all said a consideration of fixed incomes - a reality for many seniors - likely would lead them to support a tax freeze on the local level. City Councilmen Johnny Dodd and Charles Rahm agreed.

Commissioner Gary Deaton said he'd like to know the financial effects of the proposal, but would support anything that "keeps taxes low."

Roland said before he could throw his entire support behind it as a commissioner, he'd need to know "how much it would affect our county tax" revenues. But without such figures available currently, he said the shortfall would be supplanted by increases in property values and would be a "burden to the younger generation."

Rahm said he would "want some real numbers to have a better understanding; I can't see that it would be so overwhelming that it wouldn't be workable."

Newman also said he would support the proposal, but would like to know the financial ramifications.

"It would take a tremendous figure to change my mind," he said.

Madison County likely will collect more than $36 million in property taxes during the fiscal 2006-07 tax year, county Finance Director Mike Nichols said.

The city of Jackson will probably collect $25.4 million in property taxes for the 2006 calendar year, City Recorder Al Laffoon said.

How much of the county and city property taxes come from senior taxpayers is not known.

Dodd said that many seniors are faced with medical bills and this potential benefit to them is important.

"They are entitled; we owe it to them because they paved the way for us and have been supportive to us in the community," he said.

Mark Norris Official Web Site

Mark Norris Personal Web Site

Tennesse Senate Republican Caucus

Senator Mark Norris
9A Legislative Plaza,
Nashville, Tennessee 37243-0232
Phone 615-741-1967
1-800-449-8366

Email: Sen. Mark Norris