Shelby County will receive its first property tax increase in eight years after the board of commissioners voted 8-5 to a nearly two-cent adjustment for FY2027.
It is the first property tax hike of outgoing Shelby County Mayor Lee Harris’ administration. The new rate of $2.70 per $100 of assessed value of property will fund a $1.6 billion operating budget, which remained flat. Last year’s rate was $2.68.
In May, Harris proposed a $2.66 tax rate. At the time, the term-limited executive pitched the number as a tax cut. The figure merely reflected the true adjusted rate after the window to appeal FY 2025 property assessments had expired.
Instead, commission members hewed closer to the path budget committee chairman Michael Whaley proposed. During budget negotiations, the outgoing commissioner initially proposed a three cent increase to the rate, or $2.71.
Whaley was seeking additional revenue for the county’s fund balance. The past two fiscal years, commissioners passed last-minute funding resolutions due to cost overruns.
In FY2026, the overrun was due to unfunded overtime costs at the Shelby County Sheriff’s Office. Most of the money went to workers at the understaffed county jail at 201 Poplar. The lockup’s population swelled after Operation Safe Memphis was announced in September.
Whaley’s proposal was intended to prevent a similar occurrence in FY2027. The rate hike is expected to generate an additional $2.5 million in revenue. The extra cash is anticipated to shore up the county’s long term finances too.
The proposal also represented the middle road in the budget discussions.
Unsurprisingly, some rejected the notion. Every Republican commission member voted against it, including commissioners Mick Wright, Amber Mills, David Bradford and Brandon Morrison. Democrat Erika Sugarmon broke ranks and joined the conservative caucus, citing opposition to a tax increase.
Others were amenable to a hike, but were more interested in spending the money on long-neglected priorities. In the end, the latter contingent held more sway.
A majority was cobbled together after $11.8 million was diverted from funding construction on a new K-8 Treadwell Elementary School. It will be spent on deferred maintenance issues at several Memphis Shelby County district schools. The money is part of a $176.7 million Capital Improvement Plan budget that emphasizes school infrastructure, deferred maintenance and health care expansion.
It was Morrison’s proposal that united the majority. Voting in favor of were chairwoman Shante Avant, Miska Clay-Bibbs, Britney Thornton, Henri Brooks, Matthew Szalaj, Charlie Caswell, Mickell Lowery and Whaley.
The budget also provides a 1% pay increase for all county employees. Workers should notice the difference on their next pay stub. The final document also earmarks $29.4 million towards indigent care. The total is a $5.4 million increase from the previous year.
One of the biggest winners of the budget season is probably Sheriff Floyd Bonner. The sheriff’s office will receive $207 million — a $27.1 million increase over FY2026. A total of 2,444 positions could be funded with the amount. Including jail staff, the department currently has around 2,000 employees.
Commissioners also approved a $4.3 million funding settlement with Bonner to resolve unpaid over time issues from FY2026. Last year, Bonner accused Harris of “shortchanging” the SCSO by $67 million after the mayor dipped into the department’s unfunded positions to balance the county’s budget.
Commissioners also approved a separate $1.7 billion school district FY2027 budget during the meeting.
