Tax relief for the elderly

October 30, 2006
Chattanooga Times Free Press Editorial

It is a sad fact that modern tax law at both the state and federal levels is often deeply confusing. Though taxes, especially federal income taxes, generally are too high, there are numerous complex loopholes that can be used to advantage by various groups of taxpayers. Those loopholes aren’t "free," however. Since a certain amount of tax revenue is going to be generated regardless, a loophole enjoyed by one taxpayer is paid for by another.

We wish tax law were simpler at all levels and that there were low tax rates justly applied to all.

Since that is not the case, however, Tennesseans are presented with a constitutional amendment on the ballot Nov. 7 that could provide some needed property tax relief for the elderly. We recommend that voters approve the amendment.

The value of real estate continues to go up. While that is good for people looking to sell a house, it can be a real burden to elderly Tennesseans who are on fixed incomes and yet are hit with higher property tax bills year after year.

The amendment in question would permit — though not require — counties and cities in the state to freeze the property tax bill on residential property owned by people 65 years of age or older, if the property is the person’s "principal place of residence."

The measure is not designed to cover extensive rental properties an elderly person may own, which should blunt any objections by those who are always fearful lest "the rich," who pay most of the taxes by the way, enjoy any tax relief. It also properly leaves the decision of whether to grant the relief up to counties and municipalities. Thus, it is not an unfunded mandate.

While we wish in principle that tax law were much simpler, this amendment is reasonable. We recommend its approval by voters.