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A welcome freeze, maybe
Commercial Appeal
August 13, 2007
Memphis City Council members aren't necessarily known for their restraint, but they wisely showed some last week. They decided to delay a plan to adopt property tax freezes for senior citizens until more information is available about the impact such a move could have on the city's tax rate.
That impact could be sizable. According to the comptroller, more than 18 percent of the city's owner-occupied homes belong to residents 65 years or older.
And nearly 59 percent of those 65 or older would meet income limits to qualify for tax freezes set after voters approved a statewide constitutional amendment last year.
That amendment doesn't require the city to offer a tax freeze for eligible seniors.
However, since 81 percent of the voters in Shelby County favored the amendment, it seems clear that there's widespread support for doing so. Provided the consequences to the city budget aren't too severe, that is.
If the council adopts a tax freeze, tax rates for homeowners 65 or older who meet the income limits would never go up. That would mean less revenue for the city's budget, which, in turn, could translate into higher tax rates for other property owners.
That being the case, city officials should carefully examine not only the impact a tax freeze would have in the immediate future, but also the potential impact as the city's population ages.
That doesn't mean this issue should be delayed for an extended length of time. City officials owe it to the constitutional amendment's supporters to do their research as quickly as possible.
If the tax freeze is financially feasible, the council should adopt it sooner rather than later.
If it's not feasible, the council should be prepared to explain why it isn't.
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