Senior tax break gets Senate nod

By Judith R. Tackett, jtackett@nashvillecitypaper.com
 for The Nashville City Paper

April 30, 2004

A constitutional amendment that would freeze property tax increases for seniors moved out of the State Senate Thursday and now must be read on the House floor three times before the next General Assembly can vote on it.

The amendment would give local governments the ability to pass a resolution or ordinance that seniors aged 65 or older would not have to pay increases in property taxes on their primary residence.

Bill sponsor Sen. Mark Norris (R-Collierville) introduced the constitutional amendment in the Senate because a law on the same issue, which was enacted 25 years ago, was found to be unconstitutional because it singles out one group of the population for preferential treatment.

The proposal includes that the General Assembly would establish an income cap, meaning that only certain household incomes would be eligible for a property tax freeze.

The earliest local governments could pass such a law would be in 2007, after Tennesseans had a chance to cast their vote in the 2006 gubernatorial elections.

Norris’ constitutional amendment would only take effect if money to fund the initiative were available in the budget.

But according to testimony from state Comptroller John Morgan in the Senate Finance Committee this week, the administration estimates an $80-million surplus in the budget.

Senators attending a press conference given by the Senate Democratic Caucus Thursday said on their wish list for that money are $8 million to increase District Attorney salaries, $6 million for the implementation of an ethanol bill that would encourage farmers to produce corn for ethanol production as an additive to gasoline, and $4 million to fund tougher criminal penalties for methamphetamine possession as proposed by Gov. Phil Bredesen.

Speaker pro-tempore Sen. Jo Ann Graves (D-Gallatin) said the administration is currently also talking about the salary increases for state workers, which with a surplus of $80 million could go up to 4 or 5 percent. In addition, Democrats said the administration would like to see “a big chunk” to go into reserves.