Rutherford County senior citizens will get a break on their property taxes, now that Rutherford County’s Board of Commissioners approved a tax freeze at its monthly Thursday night meeting.
In a 19-2 vote, the commission passed a resolution to implement a property tax freeze for people over 65 years old, who own their home and make less than the county’s median income of $35,200 per year. An estimated 4,000 seniors will qualify for the program.
Commissioners Steve Sandlin (Dist. 9) and Jeff Rodgers (Dist. 14) voted against the resolution.
Rodgers defended his vote by noting the county’s existing senior property tax relief program, which provides relief to low-income seniors.
“Rutherford County already provides tax relief. …” Rodgers said. “It is the most generous of any county in the state.
“By adopting the tax freeze, we are shifting the tax burden to (others in the county) who are just are deserving,” he added.
But not everyone agreed with Rodgers. Commissioners Ron Williams (Dist. 8), Doug Shafer (Dist. 1), Adam Coggin (Dist. 15), Joe Frank Jernigan (Dist. 6) and Jeff Phillips (Dist. 16) spoke in favor of the tax freeze.
“We’re talking about a tax freeze program … for a different set of citizens compared to the tax relief program. …” Phillips said. “These people need protecting. And if it means a couple cents on the tax rate, then I’m for it.”
Phillips was referencing the estimated $22,567 for every additional penny of the property tax the county will be have to cover should it raise property taxes again in the near future, because of qualifying seniors paying a lower rate, said Lisa Nolen, county budget director.
“I don’t know where we’re going to find the money, but Commissioner (and Budget Committee Chairwoman Joyce) Ealy will find it,” Commissioner Coggin said in favor of the tax freeze.
How it works
In November 2006, voters across the state approved plans to relieve some pressure from seniors’ wallets and possibly save some homes from the taxman by freezing property taxes.
For as long as they qualify for the program, qualifying senior homeowners’ property taxes on their principal residence will not increase if there is a property tax rate increase or reappraisal in the future.
“They can only have one principal residence and that’s determined by where they’re registered to vote,” Batey said.
The median household income is calculated from income received by the homeowners in the pervious year. And by homeowner, Batey means the actual names or names on the deed of the house.
Household income includes: retirement plans, pensions, interest earned on investments and earned income, Batey explained.
“Some people think it’s above Social Security, but it includes their Social Security,” he added.
As written, the resolution sets this year – after the most recent property tax increase – as the base year. So seniors will not see any benefit from the freeze until the county’s property tax is raised again or property values are reappraised.
In order to qualify, seniors must apply for the freeze on a yearly basis with the county trustee office.
Seniors must bring proof of age, proof of residence and proof of income in the form of a 2007 tax return or a signed affidavit stating they didn’t make enough to fill taxes. Seniors must submit to an annual verification of information to remain in the program.
If one year is missed, they must reapply the following year, which changes the base tax rate.
“If you don’t reverify or make too much money one year, then the year you requalify becomes your base year,” Batey said, adding senior must reapply if they move to or from another county.
Seniors who think they may qualify are asked to call the Rutherford County Trustees Office at 615-898-7750 and make an appointment.
Property Tax Relief
Even with the property tax freeze, the county has two other relief programs that will continue help low-income seniors and disabled veterans pay property taxes.
“Rutherford County has been a leader in senior tax relief,” Batey said. “We offer a 2-for-1 match and we’re the only county in the state that does that.”
Since 1973, qualifying low-income seniors are given an allowance of state and county dollars to offset the cost of property taxes on the first $25,000 of assessed value.
The county reimburses qualifying seniors after the taxes are paid, Batey said.
To qualify, county residents 65 years or older must make $24,790 or less and own their home. Household income is calculated in the same way as with the property tax freeze program.
“If their income falls below $24,000 then they qualify for both (the tax relief and tax freeze programs),” Batey said.
Since 2003, the county has contributed $2 for every $1 the state contributes to the relief program. In fiscal year 2007, the county paid $268,943 for the tax relief programs, which helped around 950 low-income seniors pay property taxes.
The county’s contribution is capped at $306 and the state contributes $153 to the relief program, so qualifying seniors can receive up to $459 off their property tax bills.
For more information or to make an appointment, call the Rutherford County Trustees Office at 615-898-7750.
Michelle Willard can be contacted at 615-869-0816 or mwillard@murfreesboropost.com
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