KNOX COUNTY, Tenn. — Knox County leaders may soon freeze property taxes for thousands more homeowners 65 years old or older.
A proposed resolution would increase the income threshold for freezing property taxes to $60,000 per year — raising the existing threshold established in 2007. The resolution points to the recently adjourned 113th General Assembly, saying state leaders passed a law specifically allowing the change.
Currently, people age 65 or older in Knox County who make up to $42,220 per year are eligible to lock in their property taxes and avoid paying more if the appraised value of their property increases.
"It'll impact around 20,000 people. We're anticipating at least 10,000 of them to come and see us," said Justin Biggs, the Knox County Trustee. "Last year, we just had a reappraisal. What this does is cap the property tax that's owed now, at that specific level. That means it can go down, but it'll never be able to rise through the ceiling it is now."
Biggs and Knox County Mayor Glenn Jacobs plan to present the resolution together to Knox County Commission at a meeting in May.
Knox County Commission must approve the resolution before it goes into effect. If it is approved, future mayors won't be able to raise property taxes on seniors who fall in the income category without making a change to county rules.
Critics can make a case that locking more property into a tax freeze could cost the county money in the long run. The full commission will have a chance to dig into that question and other considerations of the new property tax relief plan at a meeting next month.
"This is a big deal," said Biggs.
The Trustee pointed out Knox County has almost 222,000 parcels and owners are paying an average of around $985 a year. The overall figure does include parcels that have not been developed — ones holding no homes or businesses.
There are other tax relief programs in the county including one offering a tax break through the Disabled Veterans Program, offering a return of $680 for property taxes paid by disabled veterans who qualify and sign up.