Memphis Approves Property Tax Hike and Fee Increases

News Summary

Major changes are underway in Memphis as the City Council finalizes a budget with a $7 million deficit. Homeowners will see a property tax increase of 50 cents per $100 valuation. Registration fees for vehicles will double, and solid waste fees will rise by $12. These changes aim to address a significant budget shortfall while maintaining essential services.

Big Changes Coming to Memphis: Property Tax Hike and Fee Increases Approved

Your city of Memphis is bracing for some significant changes after the Memphis City Council approved a new budget on April 8, 2023. The city is facing a budget deficit of $7 million, mostly due to unexpected problems at the Shelby County Clerk’s Office, pushing the council to take some bold steps.

The Numbers: What You Need to Know

First and foremost, homeowners can expect to see a noticeable difference in their property tax bills. The council approved an increase of around 50 cents per $100 valuation, marking the first hike in over a decade. This means the property tax rate will rise from approximately $2.70 to an estimated $3.20. If you own a home, be prepared to shell out hundreds of dollars more annually due to this adjustment.

Now, if that wasn’t enough, the council also decided to double the registration fee for passenger vehicles. What once cost residents $30 will now be set at $60. This change is expected to generate an additional $13 million to help fill in the city’s budget gaps.

Solid Waste Fees Are Also Going Up

If you thought your wallet was safe from the changes, think again! The fee for solid waste pickup will face an increase, too. It’s going up by $12, making the total around $42 for residents. That’s right; every little bit adds up.

Staff Cuts and Overtime Costs

$34,000 pay cut. Interestingly, both the police and fire chiefs will hold steady at a salary of $246,000, even as the police department deals with a staggering $20 million overtime budget overrun. The council approved a $15 million increase in overtime costs, but that’s an eye-popping figure nonetheless.

Changes in Position Counts

There were some discussions about potentially eliminating long-vacant positions as a cost-saving strategy, but this proposal ultimately did not pass. On the whole, the council seems to be working hard to adjust the budget according to the realities on the ground. The property tax increase of 18.2% comes in response to a hefty $858 million fiscal year budget for 2025. It was initially proposed to increase by 75 cents, but the more moderate 49-cent hike was approved as a means to soften the blow while still keeping services running.

Why These Changes Matter

Memphis residents can feel reassured that the city is aiming for more balanced funding and service distribution, even as tensions among council members rose during discussions. The city’s fund balance has seen a significant drop from $114 million to about $40 million over the last year, a situation that puts pressure on maintaining two months’ worth of operating funds.

Looking Ahead

The conversation isn’t over just yet. The next council meeting is scheduled for April 9, when they will finalize even more budget details, including a potential increase of $7 for the solid waste fee. With so much happening, one thing is certain: Memphis residents will want to stay tuned as decisions unfold. Stay informed, and be prepared for changes that could affect your monthly budget!

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Additional Resources

• Daily Memphian: Memphis City Budget Presentation
• Fox13 Memphis: Memphis City Council Passes New Budget
• Commercial Appeal: Memphis 2025 Budget and Tax Increases
• Action News 5: Memphis City Council Discusses Taxes and Budget
• Local Memphis: Budget Issues in Shelby County
• Wikipedia: Memphis, Tennessee
• Google Search: Memphis city budget 2025
• Google Scholar: Memphis budget
• Encyclopedia Britannica: Memphis, Tennessee
• Google News: Memphis city budget

Author: HERE Memphis