Shelby County will have a slightly lower property tax rate for fiscal 2023 after commissioners passed a rate of $3.39 per $100 of assessed value Monday night.
That was just below the $3.399 recertified rate set by the state, with commissioners forced to set the rate either lower — or a little higher — due to Shelby County’s aging trustee system not supporting than a tax rate that comes out to two decimal places.
“Lowering the property tax rate to $3.39 allows us to provide relief to Shelby County ratepayers while making historic investments in our future,” said Shelby County Commissioner Michael Whaley, who chaired this year’s budget committee.
This year’s tax rate is set at $3.45, but the state set the recertification rate after tax revenue for fiscal year 2023 is expected to increase by about $9 million, primarily due to assessed value and county growth.
You can calculate how much you will spend on property taxes at https://www.shelbycountytrustee.com/208/Calculate-Taxes
Or, to calculate a property tax bill, the assessed value is divided by $100, with the result multiplied by the effective tax rate. The example below illustrates this calculation for a tax rate of $3.39 on a residential property valued at $100,000:
1) estimated value of $100,000 x 25% of assessed value of residential property = $25,000
2) $25,000 / $100 = $250
3) $250 x $3.39 = $847.50 taxes due
Every property tax penny brings about $2.36 million in revenue to the Shelby County government. 55% of the county’s operating revenue comes from property taxes.
County property tax revenue is divided among three funds, the general fund, the education fund, and the debt fund. Here’s how the pennies of every $3.39 are allocated:
- General Fund: $1,251
- Education Fund: $1,587
- Debt fund: $0.552
Katherine Burgess covers county government and religion. She can be reached at [email protected], 901-529-2799 or followed on Twitter @kathsburgess.