County votes for tax relief

Hugh G. Willett news-herald.net

Loudon County Commission unanimously voted March 7 to double county matching funds for the property tax relief program.

Commission had been considering an increase in property tax relief and a property tax freeze for residents in specific disadvantaged categories that included seniors and disabled veterans.

After study, commissioners discovered a freeze would require both county tax offices bringing on additional personnel to manage the program. Tax relief was already available with current resources.

Commissioner Gary Whitfield brought the issue of tax abatement to commission last month. He made the motion to approve doubling the county match from 100% to 200% of the state maximum.

The tax relief program is administered by the state and already used in the county. Tax relief would not require additional training or manpower to expand the program and must be applied for every year. Property value is limited at $30,000 for low-income elderly and $175,000 for a disabled veteran and surviving spouse.

Tax relief might benefit more residents because the categories served are broader and maximum income is $31,000 per year. Tax relief can be used by elderly residents 65 years or older as well as disabled residents of any age and disabled veterans of any age or their widows.

An estimated 794 people in the county already receive tax relief. The county matches the state relief up to a certain level. The state currently provides $110 per year.

Under the existing tax relief program, if a resident paid $260 per year in property taxes the state would pay $110 and the county would pay $110. The resident would pay the remaining $40.

With the increase in the county match, a taxpayer getting $110 in relief would now get $220 from the county for a maximum relief of up to $330 off their property tax bill. The amount of relief is recalculated by the state each year. The total relief amount cannot exceed the total tax amount.

Whitfield said the current cost to the county for providing tax relief is about $53,000. Under the new match, the estimated cost would be about $106,000. The amount is difficult to calculate in advance because it is not known how many taxpayers will apply for the relief or what specific amount of relief they will receive.

County Mayor Rollen “Buddy” Bradshaw said the move to double the state match will start helping people right away. He said the tax freeze might be revisited some time in the future, possibly when a tax increase is proposed.

“I really think this was the way to go to help the people of the county that needed help the most,” Bradshaw said.

Commissioner Julia Hurley said she thought doubling the match was a great help. She wanted to make sure residents interested in the program understand they have to apply every year.

County Assessor Mike Campbell said the program would bring immediate relief to qualified taxpayers. He said the freeze studied by commissioners would not provide a benefit to residents unless a tax increase was implemented.

County Trustee Chip Miller said the decision will bring more benefits to disadvantaged property owners.

“The county made a very aggressive move to increase the match to 200 percent,” Miller said. “It will help folks out tremendously.”

Miller said his office will assist taxpayers who want to learn more or apply for the program.