Shelby County could get property tax rate of $3.399
Shelby County’s next property tax rate could be set around $3.399, based on the state’s certified recaptured tax rate of that amount, Shelby County Director of Finance Audrey Tipton told Shelby County Commissioners Wednesday.
Whether it will stay there is ultimately to be decided by the commission, who could vote to raise the rate.
The tax rate for fiscal year 2022, the current year, is set at $3.45, but tax revenue for fiscal year 2023 is expected to increase by about $9 million primarily due to assessed value and growth in the county.
The budget for fiscal year 2022 was $809 million, while the county budget for fiscal year 2023 is expected to be at $815 million, Tipton said.
Although the state’s certified tax rate for Shelby County is set at $3.399, the Shelby County Trustee’s Office’s system can only support a tax rate that goes out to two decimal places, meaning the tax rate is likely to be set at either $3.39 or $3.40, at the discretion of the mayor’s administration and ultimately the county commissioners.
Cutting 0.009 from the tax rate to go from $3.399 to $3.39 would mean a loss of slightly over $2.1 million in revenue, said County Commissioner Edmund Ford Jr., since one penny in the tax rate correlates to about $2.4 million in revenue.
However, Ford said he would support the $2.39 tax rate, since opting for $2.40 would in effect be a tax increase from the certified rate.
Katherine Burgess covers county government and religion.
She can be reached at katherine.burgess@commercialappeal.com, 901-5292799 or followed on Twitter @kathsburgess.