MEMPHIS, Tenn. — Memphis homeowners and property owners aren't ecstatic about paying more in tax and are wondering if revenue will be spent wisely in their neighborhoods.
This is the first city property tax increase in 12 years.
While the council's property tax increase is roughly two-thirds of Memphis mayor Paul Young's original proposal, Memphis city council members said plans are in place to make sure the tax dollars are spent wisely and, in the areas, where they were promised.
Glenn Rogers, Sr. has been living in Whitehaven for 44 years. He said the tax increase will force some tweaks in his budget. However, he doesn't believe those on fixed incomes and senior citizens.
"I can make the adjustment and my concern still is the fact that an amount has been chosen to be given right away," Rogers said.
The Memphis city council vote on Tuesday was 8-5. Rogers said he doesn't think city leaders are going to recoup all of the tax dollars in one year.
"As homeowners, as well as members of the city of Memphis being taxed, you can't make up for 12 years in one year," he said.
Homeowners will start to pay the new tax starting July 1st. With property tax going up 49 cents, homes that are worth $100,000 will have to pay between $675 a year to $800.
A $200,000 home the annual city property tax will climb from $1,350 to $1,600.
Other homeowner expenses will affected, garbage pickup will be $12 more a month for a total of $42. The cost to register your car every year will double from $30 to $60.
Memphis city council member Pearl Walker said Memphians should look at this new tax as an investment. She said a new staff member will be added to hold the city council accountable on how the new tax dollars will be spent.
"What's going out, what's coming, instead of inundated with this data right before budget season. We're gonna keep up with it year-round," Walker said.
Memphis council member Jerri Green voted no on the property tax increase. Green argued Mayor Young's administration didn't give enough details on how higher taxes will specifically fulfill promises of cleaner and safer streets.
"There were presentations made to us, and we need to be saying you set this goal, have you met it? Have you exceeded it? Are you not close, if so, why not?," Green said.
Walker told ABC24 she will host a town hall meeting July 11 with Memphians on how constituents will benefit from this new tax.