Wednesday, February 20, 2008

More property tax pain for Shelby County

Both the Mayor of Memphis and the County Mayor of Shelby County are threatening to raise the already highest property tax rates in the State of TN.

Link

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.