Memphis City Council to consider 29-cent property tax increase for MATA, other programs

Members of the Memphis City Council will consider Tuesday raising the city’s property tax rate by 29 cents for the coming fiscal year. This would bring the city’s property tax rate from $2.70 per $100 of assessed value to $2.99.

If approved, the majority of those new revenues would go to the Memphis Area Transit Authority, to the tune of at least $11 million, said Chairman Martavius Jones, who is proposing the increase. MATA has said it needs at least $15 million on top of its current budget to maintain its status quo.

“If we had a more robust transportation system it would help more people get to jobs in the city of Memphis,” Jones said. “Without (increased funding), I’m afraid there would be service cuts making it harder for people to get to work.”

Another allocation of $11 million would be slated for the city’s solid waste fund. City employees have offered possible rate increases attached to customers’ Memphis Light, Gas and Water bills in order to increase pickup of bulk waste, something this property tax increase could potentially alleviate.

Allocating property tax dollars to solid waste collection could mean less impact on people who are low-income and also addressing empty lots that are not hooked up to utilities, Jones said.

Third, about $5.6 million is proposed to go to an affordable housing trust fund.

Last, about $5.6 million in revenues would go to an opportunity youth fund.

“I want us to do something to address the large number of young people who are disengaged, who may be that ripe age between 15-24 who may not be working, develop some programs (for them),” Jones said.

Additional revenues would go into the city’s general fund.

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Council members will hear the proposal in committee Tuesday but are unlikely to fully vote on it until City Council meets on July 27, the same day the council is slated to finalize the budget and tax rate for fiscal year 2024.

Jones said he doesn’t know if he has the votes to get the property tax increase approved, but “if you look at the tenor of some of the budget discussions, I think some of my colleagues have shared the sentiment that I have that the budget was not presented in a fashion for us to address the immediate needs in our city.”

Katherine Burgess covers government and religion. She can be reached at katherine.burgess@commercialappeal.com or followed on Twitter @kathsburgess.

This article originally appeared on Memphis Commercial Appeal: Memphis City Council to consider 29-cent property tax increase