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The Blount County Commission will consider approval of a new state program to freeze property taxes for qualified senior citizens at its December meeting, but questions remain about its possible effects on county tax revenues.

According to the state Comptroller’s Office, the Property Tax Freeze Act would allow the property taxes of qualifying homeowners to be frozen at the amount of taxes owed in the year they first qualify for the program. The County Commission would have to approve the implementation of the tax freeze program locally.

“I feel like that the new tax program is full of hidden problems that may put a further tax burden on the people in the age group it’s supposed to help,” Commissioner Bob Ramsey said. “I gathered from the discussion. When it was presented to us by the County Technical Advisory Service rep, that the commission also feels it has some hidden problems. I don’t feel like the commission was convinced that this was going to be an asset to the county.”

The income limit for participation in the tax freeze program in Blount County is $31,220. This limit can change from year-to-year, meaning that a person might not stay eligible. With lost eligibility, a tax bill would jump to current levels from the frozen amount.

Commissioner John Keeble has mixed feelings about the act.

“I want to support it for the senior citizens, but we need to look at it closer,” he said. “I’m undecided. I tend to want to help the senior citizens, but you are going to have to determine how many you are going to help. Some senior citizens will be paying more.”

Commissioner Mike Walker is still gathering information about the program.
“It’s not what a lot of people thought it was,” he said. “There seems to be several concerns. One is the number of items that would be eligible for this may be lower than what was originally thought. The second part is what would be the best for the citizens and the county as far as enacting the new legislation or subsidizing the existing tax break that is already there. Either way, there is a question of whether it is ... simply a shift from one group that is taxed to another group.”

According to CTAS, four out of 10 people age 65 or older in Blount County would probably end up paying more during future tax rate increases. Figures from the Comptroller of the Treasury’s Office indicate the program could cost the county about $22,241 per each 1 cent increase of the tax rate. The program would not keep Blount County senior citizens from paying the 5-cent county increase that went into effect July 1. The property tax rate is now $2.23 per $100 of assessed value.

The act would only allow the property tax to be frozen for up to five acres of property. Any improvements made to the residence would cause the property owner’s tax bill to increase.

In November, a majority of Tennessee voters approved a constitutional amendment that would allow local governments to exempt homeowners 65 years old or older from year-to-year increases in property taxes. The county also has the option to offer a local tax relief program that parallels existing state programs, which about 3,000 people in Blount County are eligible to use.