Call for action: Fight against property tax increase

Last month, we watched very closely as Memphis Mayor Paul Young presented his proposed budget and property tax increase to the Memphis City Council. Like many of you, we believe a property tax increase during a time of still-rising inflation and higher interest rates would be a mistake. The Memphis Area Association of REALTORS® understands the City of Memphis’ financial situation but believes taxing the very homeowners and businesses who have invested in our city to rectify the budget is not the solution.

The City of Memphis already has the second-highest property tax rate in the state. When combined with the county tax, it is the highest. Mayor Young’s proposal calls for an additional 75 cents, or 28% increase to property taxes on residential and commercial properties in the city.  

For reference, here are the 2023 tax rates in major Tennessee cities.

Potential and current homebuyers and businesses in Shelby County are already choosing to relocate to other nearby municipalities in large part due to the tax rate differences. Raising taxes will drive more people and businesses out of Memphis and stop others from coming here.

At a time when our partners like the Greater Memphis Chamber and West Tennessee Home Builders Association are working to bring new business and residential investment into the city, this increase would be detrimental to those efforts.

This could be devastating to our commercial real estate sector. Many of our business owners and tenants are already being forced to pay for security measures that would be unnecessary in other cities. Memphis will continue to lose office tenants to DeSoto, Southaven, Nashville, Knoxville, and markets with lower taxes and other costs. When it comes to businesses choosing where to be, it’s largely a financial decision.

The property tax increase proposal is meant to keep homeowners and businesses in the City of Memphis and attract new residents and businesses to our community. Instead, it may do the exact opposite. We are not in a position to take, much less withstand, this risk.

We appreciate Mayor Young’s willingness to engage the business community and REALTORS® in a conversation about the city’s financial position. And we see that we have found ourselves in an untenable situation. However, MAAR believes now is the time for the city to show fiscal restraint and not ask its already overburdened homeowners and businesses to bear the financial hardship to provide services for all Memphians. 

MAAR advocates for tax policies that balance the public's and property owners' needs. Good tax policies are simple and cost-effective and follow the basic economic principle of “large base, small rate.”

We need your help to let our city council members know we oppose increasing property taxes. Click here to find out who your representative is and contact them using the contact information provided below. 

 Click here to find your representative.