Seniors' tax draws early voters

By NED B. HUNTER, Jackson Sun
November 2, 2006

Cevera Hulsey went to early voting Tuesday, not only to vote for her candidates but to hopefully save herself some money.

Standing in the Tuesday afternoon drizzle, Hulsey said she would vote for Amendment No. 2 on the ballot after learning that it's passage would allow legislators to enact legislation that could eventually cap property taxes for Tennessee residents 65 years of age or older.

"I am really for that," said Hulsey, who estimated she pays about $500 annually in property taxes. "I am already on a fixed income, and I don't need more expenses."

Nearly 25 years ago, legislation was passed to provide seniors with this tax relief, said state Sen. Mark Norris, R-Collierville, the amendment's sponsor, but the statute that still remains on the books was struck down as unconstitutional, so no property tax relief for seniors was ever realized.

Passage of Amendment No. 2 on this November's ballot would change the state's constitution to allow state lawmakers to enact legislation that would give local governments the right to cap property taxes for senior citizens.

"A lot of people don't realize that the state constitution prohibits a tax relief like this," said Norris, whose district includes Memphis and all of Dyer County.

Stan Harris voted for the amendment Tuesday, saying seniors need the tax break.

"Generally the people who are 65 and older are not in the workforce and not able to pay as easily as those who get wage increases or overtime," he said.

Should voters pass the amendment, it could still be a year or more before the relief is passed on to residents. State lawmakers would have to draft and pass the bill first, giving local governments the authority to cap the property tax. But the final decision to cap the local tax or not would rest with the local governments, said Norris, who is not a candidate in this year's election.

"It would be optional on the part of local and county governments, which rely on property taxes," he said.

Passing the legislation would not eliminate property taxes for anyone, Norris said, it would simply limit the amount of property tax paid by senior residents.

"It merely freezes the tax at the current level they are paying when they turn age 65," he said. "It keeps them from having property tax increases."

Registering to vote on Tuesday, 42-year-old Carol Adkins sounded as if she would vote yes on amendment No. 2.

"I think they (seniors) have paid their dues, and we need to give back to them," she said, "and I'd like to have it when I'm 65, also."

Madison County expects to collect more than $36 million in property taxes during the fiscal 2006-07 tax year, said Mike Nichols, county finance director. How much of that comes from senior tax payers is not known.

The city of Jackson anticipates collecting $25.4 million in property taxes for the 2006 calendar year. Those taxes include residential property, personal, commercial and other property taxes, said Al Laffoon, city recorder. The city also does not track the age of property owners.

One argument against the proposal maintains that locking in property tax rates for some would increase rates for others to account for lost future revenue. But Harris said he thought that would not happen. At least, "not for right now.

"Madison County is lucky enough to have new restaurants and homes being built," said Harris, who pays about $1,100 in county property taxes annually, "so that will help keep taxes low."

Any law providing relief likely would be applied only to a primary residence and not second homes, resort or rental properties, Norris said.

Other issues, like whether the tax break would apply to seniors who change houses or move to Tennessee after age 65 still need to be discussed before any legislation is passed. In order for the amendment to pass, it must receive a majority of "yes" votes equal to more than 50 percent of all votes cast in the gubernatorial race. If voters do not pass Amendment No. 2 during this month's election, the amendment cannot be reintroduced until 2010, Norris said.

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What to know Voting for amendment No. 2 would allow legislators to cap property taxes for people age 65 and older.   The cap would be for primary residences only, excluding second homes, resort or rental property.   The amendment must be passed by voters first.   Then it must be passed by the state General Assembly.   Then it would be up to individual local governments to enact the legislation.   For more information go online to: tennesseniors.com.