Memphis mayor says he will seek tax increase

MEMPHIS, Tenn. — Memphis Mayor Paul Young says he plans to ask for a tax increase when he presents the city’s budget to the City Council, saying it’s time to invest in the city’s future.

Young spoke Tuesday night at a church in southwest Memphis, wrapping up the accomplishments of his first 100 days in office, and outlining his vision for the future of the city. He asked Memphians to imagine a better future for their city — and said that vision is going to require more revenue to fill a $30 million budget shortfall.

“We really, simply and plain, need more revenue,” Young said. “Our current budget gets us where we are, and we’re good at getting by. But it’s time for us to step into a reality that allows us to flourish.”

► Watch the whole speech on City of Memphis Facebook page

Since taking office in January, Young said major violent crime had dropped by 10% in the first quarter of 2024 compared to last year, and property crime was down 22% compared to last year.

With the help of University of Memphis law school students, 250 Environmental Court suits have been filed; 38,000 potholes were filled in the first quarter, compared to 54,000 potholes filled in all of 2023, he said.

Young said he was committed to decreasing crime by 10% this year and every year thereafter.

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He also announced a $50 million challenge grant that would match local dollars raised for public safety and said local philanthropic partners already are stepping up.

But, he said, the city’s budget — which funds 8,100 employees, 4,500 of which are in public safety — is being stretched to its limit. Putting the city on the right track will require more. That’s the hard part, he said.

“When I go to the city council next week to present our budget, I’m going to ask for a tax increase,” he told the audience. “And trust me, I would rather not ask. But I believe that it’s the right thing for our city, I firmly believe that this is the only way for us to change our trajectory.”

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Young did not provide dollar-amount details on the tax increase proposal. The current $794 million city budget approved last June funded pay raises for police and fire with no tax increase, in part by leveraging leftover COVID funds.

Memphis’ 2024 property tax rate is about $2.70 per $100 assessed value, according to the Shelby County Trustee’s office. The city’s current tax rate is below where it stood in 2020 and before, when the property tax rate was above $3.

Crystell Harris, Principal Broker Owner with Harris & Harris Reality Group says the tax increase could possibly cause an increase in your mortgage.

Mayor Young said residents would see that proposed increase returned to them in the form of better city services, parks, transportation, and public safety.

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“We’re going to ask for an increase, but we are going to return the value to you, the residents,” Young said. “You should see this increase as an investment into our future. I believe we can turn this ship.”

The mayor also had a message for young people who are thinking of taking their talents to other cities.

“I’m asking you in Memphis to stay in Memphis,” Young said. “Quite simply Atlanta doesn’t need you, Chicago doesn’t need you. New York and Nashville don’t need you. Memphis needs you.”

WREG spoke with people who say this tax increase is coming at a time where simple things like groceries are already at an all-time high.

Cindy Hazen says that two weeks after filing a complaint about lawn debris, her request has yet to be fulfilled. She says this is a part of a larger problem, as she has filed 60 complaints in the last year regarding the same issue.

Hazen says without simple problems being resolved, it is hard hearing Mayor Young asking for more.

We reached out to the city for context and asked what that increase will look like, what it is going to, and how much is needed for the Mayor’s goal.

We were told we would have to wait until Tuesday for those answers.

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