Both the city and the county
administrations are proposing a property tax increase of nearly 10%. The mayors say the citizens won't be
paying more out of pocket because of the decreased appraisals but not everyone
agrees with that assertion.
Across the county residential property
appraisals saw a median decline in values of 15%. The median decline in Memphis is 18%.
That decline means a big loss in
revenue for both city and county governments.
If the tax rate stays the way it is, the county stands to take in nearly
53 million dollars less than it did for last year's budget. According to Mayor AC Wharton, the City of Memphis
would take in nearly 30 million dollars less than last year. Both Wharton and county mayor Mark Luttrell,
when presenting their budget proposals, said there needs to be a
"certification of the tax rolls."
This means the tax rate would rise up
to the level where the governments take in the same revenue as the previous
year. It amounts to a tax hike. The both mayors say the majority of citizens
won't be paying more, because the hike just offsets the lower property value.
Councilman Shea Flinn says that's not
a fair assessment for everyone. "That's like talking to someone who was just the
victim of a mugging and telling them crime is down. Well crime is down in the city, but it's not
down for that person and there's people whose appraisals went up. We know the commercial sector had a 10%
increase in valuation. So for them it's
a straight up tax hike."
The county appraisals are based on
comps from the last two years. The next
reappraisal will be in 2017.
There are there parts of the county that
will feel the tax increase more than others?
When we're talking about the proposed 10% tax increase for county
residents, far suburban residents are more likely to feel it in their pocket
Here's the breakdown of median decrease of home values in different parts of the county:
These are just median values, there's
homes all across the city that even saw increases in home values.
To take a look at your reappraisal and compare it to years past, click this link to the assessor's website: http://www.assessor.shelby.tn.us/content.aspx