Bristol Tennessee City Council approves property tax relief for elderly and disabled

By: Gary B. Gray/Bristol Herald Courier | TriCities.com
Published: January 09, 2008

BRISTOL, Tenn. – Thirty bucks doesn’t sound like much, but to homeowners burdened by disabilities or skimpy bank accounts, it’s a weighty sum.

In an effort to lighten the load, City Council on Tuesday voted unanimously to establish the Bristol Property Tax Relief Program for elderly low-income homeowners, disabled homeowners and disabled veterans.

The program, a first for the city, is designed to mirror a state supplement by providing local assistance to eligible participants to help them pay their 2008 property taxes.

Qualifying homeowners will get up to $32 in 2008 property tax relief benefits.

"This amount of local tax relief will result in nearly 100 percent of all Bristol homeowners enrolled in the Tennessee Property Tax Relief Program paying no more in city taxes in 2008 than they did in 2007, even with a scheduled 8 cent property tax increase for the new Fairmount Elementary School project in 2008," said Bristol Tennessee City Manager Jeff Broughton.

At a November 2007 work session, City Council members considered further tax relief in the form of the Property Tax Freeze Act passed by the Tennessee General Assembly on July 1, 2007.

The tax freeze became available to any Tennessee city or county legislative body on New Year’s Day.

Under the act, as long owners continue to qualify for the program, the amount of property taxes owed would not change, even if property tax rates increased.

But City Council decided against it, since freezing taxes for some would mean shifting and increasing the tax burden to all other homeowners.

In November, 371 Bristol homeowners were participants in the state’s Property Tax Relief program.

The estimated cost of a local $32 supplement under the city tax relief program during the coming 2008-2009 fiscal year is about $12,000.

The property tax freeze would have stopped some rates from rising for good. But the average homeowner would have seen their tax bills rise between $500-$700 over a 25-year period, according to city estimates.

"We didn’t want to see the disabled and elderly caught up in the property tax increases needed to fund Fairmount [elementary school replacement]," said Mayor David Shumaker. "The tax freeze looks good until you see that you’re talking about millions and millions of dollars down the road."

Bristol’s new program will become effective when the city adopts its 2009 fiscal budget in June.

To qualify, homeowners must be 65 or older on or before Dec. 31, 2008 and have an annual income not exceeding $24,000. The tax relief will be calculated up to $25,000 of the home’s assessed value.

Disabled veterans are allowed to have tax relief calculated on up to $175,000 of the market value of their home.

"There really is no negative here for the city," Broughton added. "The program will provide tax relief to elderly homeowners without an undue shifting of taxes to other property tax payers in the future."

City Council also unanimously amended an ordinance to enhance safety near Bristol Motor Speedway.

The new law prohibits the operation of low-speed vehicles, similar to golf carts, on the portions of Old Thomas Bridge Road, Sweet Knobs Trail and White Top Road that are within the city limits.

Bristol Tennessee Police Chief Blaine Wade said identifying street-legal vehicles as identified by state code has been very difficult.

Wade suggested erecting signage in the affected areas posting the ordinance.

"Currently, officers write numerous traffic citations to golf carts around the public streets near BMS during race events," Wade said. "With new signage on those roadways, we hope to increase compliance with the LSV ordinance and existing laws prohibiting golf carts without the need for additional enforcement."

In other business, City Council:

Authorized application to the Federal Emergency Management Agency for Pre-Disaster Mitigation Program grant funding. City staff is developing cost estimates to construct a community shelter at Fire Station 1, 211 Bluff City Highway. The station would be reinforced for wind and storm protection and expanded to provide a short-stay area for the public and emergency workers.