Editors note: This story has been updated to correct the total dollar figure for the proposed budget.
Memphis Mayor Paul Young proposed a 75-cent increase in the city’s property tax rate based on home value during his first budget proposal as mayor.
“We all know that the stakes are high. Our community is demanding different results, in order to truly get the results that our community deserves we’re going to need more revenues,” Young said.
The current property tax rate for Memphis residents is $2.70. Memphis residents pay both city and county taxes and pay the most in property taxes in all of the state.
The city’s property tax has not been raised in eight years, Young said.
Young initially announced the tax hike during his “First 100 Days and Beyond,” speech, saying the increase was needed to address shortfalls left by the absence of additional Covid-19 relief dollars.
The proposal comes after Young said the city is facing a $30 million shortfall.