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Local leaders like senior tax freeze
By Alex Doniach, Commercial Appeal
July 22, 2007
With the go-ahead from state legislators, the fate of a property tax freeze for Shelby County seniors rests in the hands of the County Commission.
Commissioner Steve Mulroy, who chairs the legislative committee, said the commission will discuss the new law in the coming months.
And he doesn't anticipate a lot of resistance, even though the freeze could cost the county tax revenue.
"I think in terms of constituents -- people -- you're not going to see a lot of opposition," said Mulroy, a Democrat. He added that if there is opposition, it might come from those who want more seniors to qualify.
The freeze, approved by the legislature in June, would protect low-income residents 65 years and older from paying increases in their property taxes.
The income to qualify is based on the median income of county residents 65 years or older, adjusted annually according to Social Security cost-of-living increases.
That number in Shelby County is about $31,550, according to Tennessee's Comptroller, meaning about 59 percent of the county's 65-and-up households would qualify.
If commissioners approve the freeze, qualifying seniors won't pay higher taxes in future tax years beginning next year.
Last week, Davidson County became the first in Tennessee to adopt the freeze.
"There are a lot of people saying that we're trying to give senior citizens a free ride," said Sen. Mark Norris, R-Collierville, who is on a statewide campaign to dispel myths about the freeze. "(Senior citizens) still pay taxes, but they don't pay increases."
Last fall, 81 percent of Shelby County voters agreed to a state constitutional amendment that gives local governments the authority to adopt a property tax freeze for low-income seniors.
Because the freeze will cost counties and cities in tax revenues, local governments have the option to participate, Norris said.
Memphis City Council already has approved a budget setting aside $2 million to account for the freeze.
The county's other municipalities, which have smaller operating budgets, will have to examine the impact of adopting the freeze -- and the potential impact of not adopting it if the other municipalities do.
For Shelby County, just how much revenue the government might lose is still unclear, said Shelby County trustee Bob Patterson.
He said preliminary estimates show the county could lose anywhere from $88,000 to $97,000 for every cent increased on the tax rate. That means other residents may wind up paying as much as 3 cents more to compensate.
Despite that, both Republican and Democratic commissioners say they'll push for the freeze to protect seniors on fixed incomes.
"We've got to rearrange the budget to accommodate seniors," said Commissioner George Flinn, a Republican. He said he doesn't want senior citizens to lose their homes or not be able to afford basic needs because of high taxes.
"I don't want to see people paying their taxes and paying more and more and not being able to afford medications or food," Flinn said.
Echoed Commissioner Sidney Chism, a Democrat: "We have an obligation to our citizens who can't afford to meet necessary obligations. ... And to make sure seniors will do all right in their twilight years."
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