(Memphis) Memphians could soon see a property tax rate hike, although City Finance Director Brian Collins says the average homeowner will not have a higher tax bill.
Currently, the tax rate in the city of Memphis is $3.11.
But with property appraisals estimated to be down 4.5 percent, the city has to decide if they want to raise the tax rate or lose revenue.
“If we try to keep the nominal tax rate which is $3.11 where it is, as opposed to $3.24 to keep revenues neutral that’s a 14 million dollar loss,” said City of Memphis Chief Administrative Officer George Little Tuesday.
If you had a house valued at $100,000 in 2012 and the value goes down the average amount of 4.5 percent you would pay $35 less next year if the tax rate stays the same.
If council decides to increase the rate to 3.25, your tax bill would stay about the same as last year.
City officials claim if they increase the tax rate by .14 cents, the average homeowner would pay the same and the city brings in the same amount of money.
“To any person looking at it, it looks like a tax increase here and that’s not the case,” said city councilman Shea Flinn.
But there will be some property values that went up, or that didn’t drop the full 4.5 percent. Those homeowners would have to pay more.
The city has to submit the adjusted tax rate to the State Board of Equalization by May.
City Council Members will have to make a decision by then if they want to assess the increased tax rate or if they will lose revenue.