Senior tax freeze needs careful handling

KnoxNews.Com
January 9, 2007

There are lots of questions, and that's no surprise.

But voters were clear: They approved a constitutional amendment allowing local governments to freeze property taxes for homeowners 65 and older whose income falls under a ceiling that the Legislature will set.

What's questionable is how it's all going to work. The General Assembly still must set the ceiling for eligibility for the tax freeze. And representatives of city and county governments in the state are getting a little jittery about how their tax base will be affected.

State Sen. Mark Norris, R-Collierville, has filed a bill that would set $50,000 as the ceiling for annual household income for seniors to be eligible for the tax freeze. Sen. Doug Jackson, D-Dickson, has filed a bill with a $60,000 ceiling.

Doug Goddard of the Tennessee County Commissioners Association argues for a lower ceiling because of the impact to the local economies.

Goddard pointed out that, based on the 2000 Census data, the percentage of senior homeowners who would be eligible under a $50,000 ceiling would range from 64 percent in Williamson County to 94 percent in Union County.

Does the amendment require the income ceiling to be the same in every county? Goddard and Norris disagree on that issue, with Goddard saying the association's lawyers believe the amendment requires a uniform limit and Norris saying that local governments will be able to set lower limits.

We understand the concerns of local governments, who will have to find the money elsewhere for their budgets, once taxes are frozen for some homeowners. But we also support Norris' warning to local governments that he doesn't want roadblocks thrown up when it comes time to implement the tax freeze.

"Your input is important in this mandate by the voters," Norris told a group of government representatives last month in Nashville. "There is some confusion, but people are anxious to get on with this."

Eighty-three percent of the voters approved the amendment on the Nov. 7 ballot. That's a pretty unmistakable mandate from the people who elect both members of the Legislature and the local city councils and county commissions across the state.

The tax freeze is aimed at senior citizens who may be on fixed incomes, with the cost of medical care, groceries and utilities rising over the years. Keeping their homeowner taxes at a fixed rate could make a significant difference for them.

They are owed what they were promised by the voters, and we count on our legislators to work out a way to implement the program that is fair to everyone.

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