MEMPHIS, Tenn. — Memphis taxpayers have plenty of questions after Mayor Paul Young announced plans to propose a property tax increase Tuesday night.
The mayor said the tax hike is necessary to cover an estimated $30 million shortfall in the city's budget. How much of a tax increase Mayor Young will ask for remains to be seen.
Memphis and Shelby County already has the highest property tax in Tennessee.
“I’d rather see what exactly it is he’s wanting to do with the taxes,” said Memphis resident Casey Mahone.
Mayor Young told reporters the tax hike is necessary to offset the decrease in federal funds during the COVID-19 pandemic and an increase in pension payments. The mayor says the higher tax would fund initiatives like bettering public safety and tackling blight.
Memphis City Councilwoman Jerri Green of District 2 says that while she's in favor of supporting those efforts, taxing Memphians is not the answer.
“I understand that the budget’s tight, but budgets are tight for moms like me and for our city,” Councilwoman Green said. “So we are going to have to see where we can cut back, where we can get rid of waste, where we can prioritize.”
Memphis resident April Glover agrees, arguing the city should be looking at other options to generate revenue.
“Business-oriented ideas like put a toll on the bridge for people that are working in Memphis and all of the money is going back to the state of Mississippi or Arkansas,” she said.
City Councilwoman Pearl Walker of District 3 says she and lots of her constituents are in favor of the tax hike, provided it leads to meaningful change.
“They can see the results, they can see that it’s being used to support our public safety initiative, that it’s being used to address the blight in the city,” she offered as examples. “Some definite tangibles.”
Mahone said he wants as much transparency as possible.
“History shows us in most towns when politicians get elected, especially ones with no experience, a lot of things they want to do are conditional,” Mahone said. “There’s always some catch to it.”
Mayor Young will make his full budget proposal to the city council April 23rd, where the exact proposed property tax hike will be laid out.
Council members will have the final say when they vote to approve the spending plan later in the spring.