Memphis Mayor Willie Herenton says an increase in the city's property tax rate next year is "almost inescapable."
Herenton acknowledged the all-but-inevitable for city residents for the first time in an interview Tuesday following a budget update before the City Council's budget committee.[...]
After failing to win support for a privilege tax last year, Shelby County Mayor A C Wharton now is pushing a food and beverage tax. That still needs approval by the state legislature. Should that fail, he has said the county faces a property tax rate increase of up to 31 cents.
Meanwhile, on the city side, revenue from local sales taxes this fiscal year is expected to come in about $7.3 million under initial projections because of slowing retail activity, said city finance director Roland McElrath.