Memphis Residents Pay The Costs Of Big Business Through Proposed Property Tax Increase
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The Tennessee Conservative Staff –
Memphis officials have proposed a 28% property tax hike while offering massive tax breaks to large corporations.
Mayor Paul Young says the city needs $30 million to cover a budget shortage now that Covid-19 relief funds are no longer coming in.
“We all know that the stakes are high. Our community is demanding different results, in order to truly get the results that our community deserves we’re going to need more revenues,” Young said in his “First 100 Days and Beyond” speech.
That $30 million is coincidentally the same amount needed to provide tax breaks to some of Memphis’ biggest businesses.
There are nine boards across Shelby County that have the authority to issue PILOTs (Payments in Lieu of Tax) to corporations. PILOTs are intended to incentivize businesses to move into the area or keep them there.
“It’s not a guarantee that that investment would happen without the incentive. And so what we’re doing is providing an incentive for them to invest more,” said Joann Massey, Vice President of Operations for EDGE.
EDGE is one of the nine boards responsible for recruiting new business and granting PILOTs. There are five boards focused on suburban industry in Arlington, Bartlett, Collierville, Germantown, and Millington, as well as the Center City Revenue Finance Corporation. Additionally, the Health, Education and Housing Facility Boards of Memphis and Shelby Count can also provide PILOTs to help with affordable housing.
2023 reports show that 528 parcels of land were given tax breaks in Memphis and Shelby County last year. Comparatively, Davidson County only provided 40 tax breaks, while Knox County provided 50. It is important to note, however, that these breaks are self-reported by the companies to the comptroller, and there is no penalty for businesses that do not report.
Memphis residents currently pay a property tax rate of $2.70. The proposed increase would add 75 cents to that rate. This would be the first increase in eight years.
Young claims that a majority of the tax increase revenue would go to Memphis-Shelby County Schools, while additional monies would be allocated to salary increases for city employees and increased public safety.
Budget negotiations will start taking place in May and June. The city has until July 1st to pass a finalized budget.
Seriously, who didn’t see that coming?
Someone has to cover the handouts of public funds.
Why would any company want to locate in Memphis?
Did he think the covid scamdemic was real and funding would never stop? What a sorry excuse for wasting city funds and now begging for more. Smaller towns that Memphis had incorporated have been successful in breaking the ties and now Memphis has lost a lot of suburban money. But the mayor is really, really going to work on crime this time.
The new Memphis Property Tax Rate will be $3.45. That’s MUCH lower than I would have thought.
Nashville’s Property Tax Rate = $3.254 (50% more than Brentwood)
and the Brentwood Property Tax Rate = $2.17 (City + County)
A BIG problem in Memphis is that home prices are SO low because no one wants to live there because of the crime and murders (I think Memphis is the Murder Capitol of America). I know of a house there that would sell for $1.5 million in Brentwood that is selling for $500,000.
Seriously – don’t go there unless you must and take a gun and watch your back – the criminals will shoot you in the back.