March 25, 2008
OUR TAX BUCKET HAS A HOLE IN IT!!!
March madness leads to April fools day and this year is no exception. The madness was Mayor Herenton’s announcement that he is going to resign this summer and move on to ruining the Memphis School system or maybe the US Congress. I am sorry to tell him that both are already well on the way to destruction.
The recent announcement by Mayor Wharton and Marlin Mosby that our present course in Memphis and Shelby County is unstainable is something that I have been warning of for some time. Mayor Herenton continues to deny the obvious, making a change of course more difficult. Recently I pointed out some of the major causes of our financial problems and some of the hard and politically difficult decisions that need to be made. I want to explore further another aspect of the financial problem.
There are over 15000 buildings and properties in Shelby County that pay zero property taxes. There are many more that pay only a part share of the full property tax rate. Of the no property tax facilities, they run from an appraisal of over $150 million down. The total is over $3.5 billion. The types of properties include religious, government, apartments, office buildings, manufacturing and warehouse.
Looking more specifically at some examples helps a discussion of why these properties pay no taxes. We could probably all agree that the main church worship building should be free of property taxes. Churches are a big business in Shelby County. But what about all the ancillary activities and property that goes along with many churches such as schools, child care facilities, nursing homes and retirement communities. There are many that feel that some of these facilities should pay some tax, possibility at a lower rate than residential or commercial properties.
Some specific examples are Kirby Pines Estates at 3535 Kirby Road and Trezevant Manor at 177 N. Highland. Together they have a total market appraisal of $110 million. Concerning office buildings you have the Morgan Keegan Building at 50 N. Front at an appraisal of $35 million and Peabody Place at 149 Union at $44 million. Then look at warehouses such as 4880 Tuggle (Ford Memphis Parts Distribution, 4155 E. Holmes (Memphis Distribution Center Panattoni Development Co. LLC), 5461 Davidson (Hamilton Beach, Prologis), and 5200 Tradeport (Chickasaw Distribution Co) for a total appraaisal of $111 million. And then there is the Yellow Freight System at 3914 E. Shelby Drive at over $5 million. All of these paying no property taxes on the buildings as of 2004. How long do these tax abatements run? It varies but as an example, the Ford deal runs from 2002 to 2014.
Who gives these no tax or reduced tax benefits? Principally they are the Industrial Development Board of Memphis and Shelby County, the Center City Revenue Corporation, the Shelby County Health and Education and Housing Facility Board and various other boards constituted in Collierville and other incorporated cities.
We need an honest and transparent discussion of these no tax and partial tax properties in Shelby County as we are facing massive tax increases this year and next. With a shrinking tax base of people able to bear the load, we could be facing a financial disaster. I will be reporting further on this subject in future reports.
OUR TAX BUCKET HAS A HOLE IN IT!!!
March madness leads to April fools day and this year is no exception. The madness was Mayor Herenton’s announcement that he is going to resign this summer and move on to ruining the Memphis School system or maybe the US Congress. I am sorry to tell him that both are already well on the way to destruction.
The recent announcement by Mayor Wharton and Marlin Mosby that our present course in Memphis and Shelby County is unstainable is something that I have been warning of for some time. Mayor Herenton continues to deny the obvious, making a change of course more difficult. Recently I pointed out some of the major causes of our financial problems and some of the hard and politically difficult decisions that need to be made. I want to explore further another aspect of the financial problem.
There are over 15000 buildings and properties in Shelby County that pay zero property taxes. There are many more that pay only a part share of the full property tax rate. Of the no property tax facilities, they run from an appraisal of over $150 million down. The total is over $3.5 billion. The types of properties include religious, government, apartments, office buildings, manufacturing and warehouse.
Looking more specifically at some examples helps a discussion of why these properties pay no taxes. We could probably all agree that the main church worship building should be free of property taxes. Churches are a big business in Shelby County. But what about all the ancillary activities and property that goes along with many churches such as schools, child care facilities, nursing homes and retirement communities. There are many that feel that some of these facilities should pay some tax, possibility at a lower rate than residential or commercial properties.
Some specific examples are Kirby Pines Estates at 3535 Kirby Road and Trezevant Manor at 177 N. Highland. Together they have a total market appraisal of $110 million. Concerning office buildings you have the Morgan Keegan Building at 50 N. Front at an appraisal of $35 million and Peabody Place at 149 Union at $44 million. Then look at warehouses such as 4880 Tuggle (Ford Memphis Parts Distribution, 4155 E. Holmes (Memphis Distribution Center Panattoni Development Co. LLC), 5461 Davidson (Hamilton Beach, Prologis), and 5200 Tradeport (Chickasaw Distribution Co) for a total appraaisal of $111 million. And then there is the Yellow Freight System at 3914 E. Shelby Drive at over $5 million. All of these paying no property taxes on the buildings as of 2004. How long do these tax abatements run? It varies but as an example, the Ford deal runs from 2002 to 2014.
Who gives these no tax or reduced tax benefits? Principally they are the Industrial Development Board of Memphis and Shelby County, the Center City Revenue Corporation, the Shelby County Health and Education and Housing Facility Board and various other boards constituted in Collierville and other incorporated cities.
We need an honest and transparent discussion of these no tax and partial tax properties in Shelby County as we are facing massive tax increases this year and next. With a shrinking tax base of people able to bear the load, we could be facing a financial disaster. I will be reporting further on this subject in future reports.
posted by watchdog at
8:52 AM
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