County Technical Assistance Service (CTAS) member Joe Griffin gave a presentation to the Metro Council at February’s meeting comparing Tennessee’s tax relief program with a county tax freeze. One major difference is that tax relief is administered by the state, and a tax freeze is administered by the county.

To qualify for tax relief, the homeowner can be a low income senior, a total and permanently disabled person, or a disabled veteran. The homeowner must reside on the property. The income threshold is $37,530 of adjusted gross income. The state will then pay part of the property tax, with Moore County matching that contribution. Application is made through the state, and the state determines eligibility. Application must be made annually.

On the other hand, a tax freeze does not lower a homeowner’s tax bill. The applicant must be 65 within the tax year applied for, and must reside on the property. There is a higher income threshold of $49, 570 adjusted gross income, or $63,470 if the county takes that option. If there is no tax increase, then nothing changes. If there is a tax increase, then the homeowner’s tax rate will remain the same instead of increasing. Application must be made annually, and eligibility will be determined annually.

A tax freeze is administered entirely by the county. That means that the County Trustee is responsible for determining eligibility of homeowners applying for the freeze. The Trustee must review the applicant’s financial records, which can be quite time consuming. Griffin pointed out that the Trustee’s office is one large room with no private space for applicants to review their financial matters with the Trustee while people are coming in and out of that office on other business.

The workload of determining eligibility in addition to the Trustee’s regular responsibilities will require at least another part time position. The total financial burden of a tax freeze would land on the county. With eligibility being determined annually it could make it more difficult to develop budgets, as revenues could constantly change.

The presentation was given for informational purposes as the council investigates options. Griffin informed the council that there are thirty one property tax proposals in legislation currently, and some could pass that would better benefit the county and homeowners alike. There were no motions made and no votes taken on the matter.