Shelby County mayor wants to raise property taxes - Action News 5 - Memphis, Tennessee

Shelby County mayor wants to raise property taxes

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MEMPHIS, TN -

(WMC-TV) - The Shelby County government is proposing a 9 percent property tax hike.

The Shelby County tax rate, as set by the County Commission, is $4.02 inside Memphis and $4.06 outside Memphis.

The tax hike the mayor's office announced Wednesday would be in addition to other sales and property tax increases that individual municipalities are proposing. Some municipalities could see as many as three separate tax hikes.

With Mayor Mark Luttrell sitting in the wings, Shelby County's Director of Finance broke the news to county commissioners Wednesday.

Shelby County Director of Administration and Finance Mike Swift says the administration must bump up the current countywide property tax rate of $4.02 to make up for property values losses.

Republican commissioners did not take the idea well.

"It's a wide array of things that caused this perfect storm, but you can't keep putting it on the back of the taxpayers," said Shelby County Commissioner Terry Roland.

The committee approved the certified tax rate.

For example, if you live in a $150,000 home, you now pay $1,522.50 in property taxes. The tax hike would add another $137 to that bill.

"I just think there are some efforts sometimes to pad the pockets of downtown," said Shelby County Commissioner Wyatt Bunker.

After the vote, the mayor told commissioners that the county would need to tag on an additional 6 cents to the property tax hike (per $100 of assessed value) for the 2013-2014 fiscal year, in order to cover schools and other costs.

If the commission approves Luttrell's tax hike, suburban municipalities will see that increase, plus the half-cent sales tax hike, and a municipal property tax hike to pay for their own schools.

The final vote on the countywide tax hike is next Monday.

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