Counties, Cities Can Now Freeze Property Tax Rates

Source: AARP.org | June 22, 2007

Counties and cities in Tennessee can now freeze the property tax rates for eligible homeowners 65 and over. State lawmakers gave local governments the authority to enact the tax freeze during the legislative session.

Now county commissions and city councils will consider proposals to freeze the property tax rates at their current levels for homeowners with combined incomes below $24,000 a year or the median level for seniors in their jurisdiction, whichever is higher.

The freeze would mean eligible homeowners would not have to pay higher taxes the next time a local government increases property tax rates.

The adoption of a property tax freeze by local governments will be the final step in an effort to limit the impact of rising housing assessments and property taxes on seniors with fixed incomes. The process began with Constitutional Amendment No. 2 which received an 83 percent "yes" vote in the 2006 general election.

This year the General Assembly set the household income limit for eligibility. An opinion from the state Attorney General prompted lawmakers to allow the limit to be based on the median income levels in counties for those 65 and over, with a base combined income level of $24,000. The result is that in some counties and cities the income level can be higher than the minimum level. For example, in Knox County, the limit would be $32,237. The base $24,000 income level applies in 51 of the state's 95 counties.

Along with the property tax freeze, the state program which provides rebates to low-income homeowners was expanded to provide more relief for more seniors as well as disabled veterans. Homeowners with incomes below $24,000 can now receive a rebate on taxes of up to $30,000 of their homes' value, both significant increases.

Other Resources

• Check out this map to find the income limits for your county.
• To contact county officials, please visit this Web site provided by the University of Tennessee Institute for Public Service.
• To contact city officials, please visit this Web site provided by the University of Tennessee Institute for Public Service.