Property Tax Freeze Act Information

Hello everyone,

On Wednesday, I attended a regional meeting of the Tennessee County Commissioners Association (TCCA) in Knoxville. While there, we learned a little more about the Property Tax Freeze Act that was passed by the General Assembly in June of this year.

Here's the actual text of the Act itself.

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67-5-705. Maximum property taxes for certain elderly citizens. —

(a) The legislative body of any county or municipality may provide by resolution that:

(1) Any taxpayer who is sixty-five (65) years of age or older and who owns residential property as the taxpayer's principal place of residence shall pay taxes on such property in an amount not to exceed the maximum amount of tax on such property imposed in the 1979 tax year;

(2) Any taxpayer who reaches the age of sixty-five (65) after May 31, 1979, who owns residential property as the taxpayer's principal place of residence shall thereafter pay taxes on such property in an amount not to exceed the maximum amount of tax on such property imposed in the tax year in which such taxpayer reaches age sixty-five (65); and

(3) Any taxpayer who is sixty-five (65) years of age or older who purchases residential property as the taxpayer's principal place of residence after the taxpayer's sixty-fifth birthday shall pay taxes in an amount not to exceed the maximum amount of tax imposed on such property in the tax year in which such property is purchased.

(b) Whenever the full market value of such property is increased as a result of improvements to such property after May 31, 1979, then the assessed value of such property shall be adjusted to include such increased value and the taxes shall also be increased proportionally with the value.

(c) Any taxpayer or taxpayers who own residential property as their principal place of residence whose total or combined annual income is in excess of twelve thousand dollars ($12,000) shall not be eligible to receive the tax relief provided in subsection (a) or (b).

[Acts 1979, ch. 407, §§ 1, 2; T.C.A., §§ 67-649, 67-674.]

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I'll share with you some of what I learned about this idea in a later post. For now, though, I want you to know where to find out more information for yourself on the web.

1. Though what you just read above is the Act itself, you need to read the more complete version found in Public Chapter 581. You can find that when you click here.

2. There's a nice summary in a Spotlight publication on the website of the County Technical Assistance Service (CTAS). Remember, CTAS is the organization sponsored by UT that provides technical help of all kinds to your local government officials.

3. The state Comptroller offers great information on his website. Click here for a fairly clear, easy to read page on the subject. Once you get there, you'll find several other helpful links.

4. Click here for a list of income limits by county for this year. Note: these limits will be recalculated each year, and will change over time as the median income in a county changes.

5. And finally, did you know that Tennessee already provides tax relief to low income seniors? In fact, tax relief is available for disabled homeowners and disabled veterans as well. Rather than a tax freeze, this program offers reimbursement by the state to those who meet certain criteria.

• Click here for general information about these programs.
• Click here for a brochure on relief for elderly or disabled homeowners.
• Click here for a brochure on relief for disabled veterans.

OK! Go see what you can find out. We have not addressed this at county commission yet, but I'm sure we will. The more I learn about this Act, the more questions I have. (I know, I know- what else is new?) There are a number of factors about its potential impact on our citizens that need to be thought through carefully. When the discussion starts, it's imperative that we fully understand the long term implications, both for the community at large, and for the individuals who might choose to opt in to the program.

As always, please post your comments or send me a note and let me know what you think.

And have a great weekend!

Until next time,

~Wendy