Property Tax Relief on Nov. 7 Ballot

AARP.org
October 16, 2006

Tennesseans will have a chance to vote on a constitutional amendment this fall which gives local governments a chance to provide "homestead" property tax relief to older homeowners with limited incomes.

Constitutional Amendment Number Two would give county and municipal governments a chance to enact programs that would freeze residential property tax bills for taxpayers 65 years of age or older. If a simple majority votes "yes", and the total number of yes votes equals more than half of the total number of votes cast in the governor's race, the amendment will become part of the state constitution.

With AARP Tennessee's support, the 103rd and 104th Tennessee General Assemblies voted overwhelmingly in favor of putting the amendment on the November ballot. If the amendment passes on Nov. 7, the legislature will provide local governments with specific income eligibility limits through legislation expected to pass in 2007.

In Tennessee, local property taxes fund vital government services such as police and fire protection, health services, and amenities such as parks and recreational facilities. While in general terms, the property tax is a progressive tax, it is actually very regressive for many seniors, and is the single most burdensome tax for many low-income seniors. The tax does not take account of ability to pay except where such homestead programs are available.

Property tax burdens are rising in much of the country and across the state, raising concerns about people being forced out of their homes because of inability to pay their property taxes.

AARP Tennessee supports this proposed constitutional amendment, which is widely viewed as a fair way to assist older Tennesseans on fixed incomes, whose rising property tax bills are forcing them out of their homes.