MEMPHIS, Tenn. — Shelby County Mayor Lee Harris presented his $1.7 billion budget to county commissioners on Wednesday, and he says it may mean a tax cut for homeowners.
The plan does not call for a property tax increase. In fact, Harris is urging commissioners to slash the property tax rate by 20%.
The current property tax rate is $3.39 per $100 of assessed value. Harris proposes a new rate of $2.73, a 66-cent reduction.
If approved, Harris says the new rate would be the lowest in Shelby County in 30 years.
The budget proposal contains half a billion dollars to rebuild Regional One, among other priorities, Harris said.
“I’m proposing that Shelby County continue to manage its finances in the same way households do,” Harris said. “We don’t spend more than what we receive, unless it’s vitally important, we don’t buy it, we don’t spend it.”
State law mandates the county roll back its tax rate whenever property assessments rise based on comparable sales, to prevent a windfall. It’s unclear whether Harris is proposing a cut below that level.
A countywide reassessment was done this year, leading to what the county assessor said could be a “significant increase” in tax assessments for the average homeowner.
Last year, the county commission approved a budget with no tax rate increase.