Commissioner Comments Moratorium in County Meeting
By Misty Green
Picking up where the story left off concerning the July 1st Macon County Commissioners meeting…
District 8 Commissioner Bobby Ray King commented during the last Committee of the Whole meeting to consider a moratorium and press pause on any more county spending for a while.
A moratorium is a temporary suspension of an activity or law until future consideration warrants lifting the suspension, such as if and when the issues that led to the moratorium have been resolved. A moratorium may be imposed in response to temporary financial hardships. For example, a business that has exceeded its budget might place a moratorium on new hiring until the start of its next fiscal year. On June 3, 2024, The Mayor of Yonkers, NY called for moratorium on approvals for the construction and opening of additional self-storage of lithium-ion battery facilities, in order to provide the city an opportunity to dig deeper into the potential economic and public health impacts these facilities have on residents and businesses. The Mayor of New Albany called moratorium on apartments and short term rentals to shift focus on single-family homes. The Los Angeles City Council April 9, 2024 moratorium temporarily halted dog breeding permits until the shelters were at or below 75% capacity for three consecutive months to address overpopulation.
The previous Macon County Chronicle story ended with Commissioner Bobby Ray King having a request placed on the agenda to discuss taxes among the governing body.
The question was asked, if this body could consider, instead of raising taxes, imposing a dwelling tax for people who occupy rental properties, explaining that the people who pay rent, do not have to contribute to things such as property taxes.
County Attorney Guy Holliman replied that the Tennessee State Constitution does not allow it. Holliman then spoke from his personal experience owing rental units, that when he received his property tax bill in the mail, he would then calculate an increased rental payment and pass the cost along to them.
“I have some apartments in Putnam County and I get a $3,000 property tax bill every year… When I charge rent, I go down to that line and add so much for insurance, so much for fire protection, so much for the sprinkler system, and I go on and do that and I get down to property taxes and I assign so much for property taxes that I pay on that apartment to each unit that I rent out… And just to be candid, and I know what you are getting at because the schools are full and everything else, but a person that rents an apartment, they pay property tax because, I ain’t going to pay their property taxes, they are going to pay it, so I figure out how much of the bill is theirs and I pass it on… If my property tax goes up from one year to another, you know what, my rent that I charge goes up, because I’m not going to eat that increase… I’m going to pass it on… So really, it is a fallacy that people who rent don’t pay property taxes, because they do… They don’t get a break on taxes, they just pay it through their rent.”
“I just want to say,” Macon County Mayor Steve Jones added, “If you have two or more living in a house, you have to pay at a higher rate.”
“So, the way it works is,” Holliman added, “Even though it is acting as a residence for people, it is seen as commercial property and is paid at a higher tax rate… We collect more revenue for commercial property than for a house the same size.”
“That’s the reason, I hear so many people tell me they would rather see a wheel tax as a property tax increase,” Mayor Steve Jones said, “Because you have so many people renting… You have got some good thoughts Bobby,” Mayor Jones added.
Commissioner Bobby Ray King had one more thing he needed to say, before letting the tax issue rest.
“Like all of this out here you have got going on, new buildings going up and additions, and spending county money that just keeps going, going, and going, and maybe a moratorium should be considered to stop spending for a while,” Commissioner Bobby Ray King added.
A voluntary moratorium is a vehicle to bring spending back in line with current revenues. Local governments and courts have long recognized the planning value of temporary moratorium in certain circumstances.
Macon County Attorney Guy Holliman responded saying, “Bobby, several years ago, the County Commission asked me to look into the legality of a renters tax and enforcing it, and several laws explained it would be unconstitutional to impose that.”
“Anything else,” Mayor Jones asked. “No,” Mr. King replied. “Thank you Bobby,” Mayor Jones replied.
The governing body then entertained motions to accept the monthly reports from Building Codes/Impact Fees; Animal Control; and EMS Operational Report and Write-offs, and then the meeting adjourned.
Macon County Mayor Steve Jones wanted all to know there will be a public hearing on Monday, July 15th at 5 p.m. on the County’s intent to exceed the certified property tax rate. The hearing will be held at the City of Lafayette Meeting Room, 200 East Locust Street, Lafayette, Tennessee, with the Legislative Body Meeting to follow at 6:30 p.m. Reminders: Macon County Fair Dates ~ July 26 – August 3.
