Senior tax freeze merits approval

Commercial Appeal
June 14, 2007

Most of us could end up paying a bit more than we would have otherwise, but the property tax relief bill authorized by the Tennessee General Assembly in its closing minutes should be adopted on a local basis.

Eighty-one percent of Shelby County voters who turned out for the general election last fall approved a state constitutional amendment that gives local governments the authority to adopt a property tax freeze for low-income seniors.

Adoption of the freeze by local government entities such as Shelby County and the city of Memphis means that the next time a tax rate increase is necessary, it will have to be spread among fewer property owners.

For every 1-cent hike in property tax rates among city and county governments across the state, according to a report prepared by the state comptroller's office, local governments would get about $1.1 million less than they would have otherwise.

Shelby County government would lose about $89,000 for each 1-cent hike in the tax rate, the city of Memphis about $46,000.

That's a small price to pay for the relief for seniors who would qualify for a locally approved tax freeze plan, a measure championed by Sen. Mark Norris, R-Collierville, and easily passed in both chambers of the legislature just prior to adjournment this week.

The price is even smaller than it would have been under Norris' original bill, which would have capped household income for eligible taxpayers at $50,000.

An amendment changed the threshold to a computation based on the median income of county residents 65 years old and above, adjusted annually according to Social Security cost-of-living increases.

In Shelby County, that means households owned by seniors at least 65 years old with incomes not exceeding $31,549 -- 59 percent of the county's 65-and-up households -- would qualify.

That's a far cry from the original goal of the legislation, but, still, an option that some of Shelby County's most financially vulnerable homeowners could use. Seniors on fixed incomes have few resources to call on when the costs of government rise. They shouldn't have to face the choice of buying medicine or paying their property taxes.

In some cases, holding off a foreclosure action will benefit not only the homeowner but the costly social safety network that sustains people who lose their homes.

Every taxing authority in Shelby County should make this tax freeze available to qualifying senior homeowners as soon as it's practical to do so.