Some Local Officials Wary of Generous Tax Break for Elderly

MyFoxMemphis.com
December 14, 2006

Chattanooga, Tenn. (WHBQ Wire Services) -- Getting voters to approve a tax break for older homeowners was easy. Now state Sen. Mark Norris has to persuade local government officials to accept a reduction in property tax revenues.

An overwhelming majority of Tennessee voters approved the constitutional amendment that would allow local governments to exempt homeowners 65 years old or older from year-to-year increases in property taxes.

Representatives of city and county governments were ready with questions when they met Wednesday in Nashville with the Collierville Republican, who sponsored the measure. Nothing will change until state lawmakers approve an enabling measure.

Norris described the Nov. 7 vote as a "mandate from the citizens of Tennessee that we implement property tax relief."

He has prefiled a bill that would permit local governments to freeze residential property taxes for elderly homeowners who have incomes up to $50,000. Another lawmaker has prefiled legislation that would set a $60,000 cap.

"Even $20,000 ... erodes the value of a penny (property tax) increase by 10 percent," said Doug Goddard, executive director of the Tennessee County Commissioners Association.

Goddard predicted local governments would not join a voluntary subsidy program "if you make it too rich."

Goddard said that using 2000 census data, between 64 percent (in Williamson County) and 94 percent (in Union County) of senior homeowners would be eligible under a $50,000 limit, depending on which county they live in. He said association attorneys believe the amendment requires a uniform statewide income limit.

Norris disagreed, saying local governments could set lower caps or not join the program.

Hamilton County Commissioner Curtis Adams, a proponent of freezing taxes for the elderly, said he favored a much lower cap.

"I would think $20,000 or $25,000 is as good as we should try to do," Adams said.

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Tennesse Senate Republican Caucus

Senator Mark Norris
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Email: Sen. Mark Norris