An ordinance establishing the Seniors Tax Relief Grant Program for the purpose of providing assistance to elderly resident tax-payers of Davidson County and to allocate and appropriate the additional sales tax revenue that will be received if the voters approve an increase in the local option sales tax.

WHEREAS, Nashville's strong economy produces increasing values of residential and other real property in Davidson County; and

WHEREAS, this economic strength is expected to continue further increasing property values; and

WHEREAS, this often results in aged persons who purchased real property in Davidson County years ago facing increased tax burdens; and

WHEREAS, aged citizens are often limited in their sources and amounts of income; and

WHEREAS, it is in the best interest of the Metropolitan Government of Nashville and Davidson County that its aged residents are able to remain in their residences, remain in their neighborhoods, and continue to contribute to diverse communities; and

WHEREAS, the Metropolitan Government of Nashville and Davidson County can maintain the diversity of age of its residents, and preserve the role of aged persons in the County's myriad neighborhoods, by ensuring that aged home-owners' net tax burdens do not exceed such persons' ability to pay them; and

WHEREAS, it is anticipated that the Metropolitan Government of Nashville and Davidson County will enact an increase in the local option sales and use tax, with the same to be approved by the electors, to take effect on or before January 1, 2006; and

WHEREAS, the Metropolitan Government anticipates using twenty percent (20%) of the funds resulting from such tax increase to fund a program for assistance to elderly resident tax-payers of Davidson County and eighty percent (80%) of the funds resulting from such tax increase to be allocated to Metro Schools.

NOW, THEREFORE, BE IT ENACTED BY THE COUNCIL OF THE METROPOLITAN GOVERNMENT OF NASHVILLE AND DAVIDSON COUNTY:

Section 1. There is hereby created a program known as the "Seniors Tax Relief Grant Program" for the purpose of providing grants of assistance to elderly resident tax-payers of Davidson County.

Section 2. Program Structure

A. Eligibility. An individual is eligible to participate in the program who:
1. Is at least sixty-five (65) years of age as of December 31 of the year in which the tax is owed;
2. Resides in Davidson County by July 1 of the year in which the tax is owed; and
3. Applies for and receives any tax relief for which they may be eligible from the State of Tennessee, and
4. Pays real property taxes on the individual's primary residence to the Metropolitan Government of Nashville and Davidson County.

B. Amount. The amount of the grant received by an eligible participant will be:
1. The Sum of:
a. The total amount of property taxes, not including penalties and interest, paid by the eligible participant and any co-owner(s) on the primary residence, not to exceed the property taxes due on a property with an appraised value of $200,000;
b. Plus the estimated amount of local sales tax paid by the eligible participant and any co-owner(s);
c. Plus the amount of the motor vehicle regulatory license fee paid, not to exceed the tax paid on one non-commercial vehicle for each eligible participant and any co-owner(s), and not to exceed a total of two vehicles;
2. Less the sum of:
a. Five percent (5%) of the eligible participant's income, and
b. The amount of any other tax relief the eligible participant receives from the State of Tennessee.

C. Income and Co-owners.
1. Eligible Participant's Income. For the purpose of this grant program, the eligible participant's income shall be the income of the participant and any co-owner(s) from all sources, including but not limited to: Social Security (after Medicare is deducted); Supplemental Security Income (SSI); retirement or pension benefits; Veterans Administration benefits; worker's compensation; salaries or wages, interest or dividends (including tax exempt income that may be excluded from adjusted gross income) and any other income that is included in adjusted gross income for federal income tax purposes.
2. Co-owners. A co-owner is one who owns the property with the eligible participant and who also uses the property as his or her primary residence. Having an ineligible co-owner does not prevent an eligible participant from receiving a grant with the amount of such grant calculated as set forth above. In the event both or all co-owners are eligible participants, each eligible co-owner shall receive an equal portion of the grant amount; however, if the eligible co-owners' ownership interests are unequal, each shall receive a portion of the grant amount in proportion with his or her ownership interest.
Section 3. Distribution of Increased Sales Tax Revenue.
A. Fiscal Year Ending June 30, 2006. If prior to January 1, 2006 the voters of Davidson County approve an increase in the local sales tax from 2.25 percent to 2.75 percent, the Director of Finance shall allocate for the fiscal year ending June 30, 2006, the first $12 million in additional sales tax collections to the Senior Tax Relief Grant Program created pursuant to this Ordinance. However, in no event may the portion of total local option sales tax revenue distributed for school purposes be less than 50%, as provided by Tennessee Code Annotated Section 67-6-712(a)(1). Said additional funds shall be combined with appropriations for tax relief included in the approved budget ordinance for the fiscal year ending June 30, 2006 and are appropriated for the Senior Tax Relief Grant Program created by this ordinance. All funds received in additional sales tax collections resulting from the increase in the local sales tax to 2.75 percent shall be allocated to the GSD General Purpose School Fund.
B. Subsequent Fiscal Years. For all subsequent fiscal years, it is the intent of the Metropolitan Government to allocate funds received pursuant to this increase in the sales tax rate (exclusive of funds not retained by the Metropolitan Government of Nashville and Davidson County pursuant to Tennessee Code Annotated Section 67-6-712(a)(2)(B)) as follows:
1. 80% for school purposes; and,
2. 20% for grants to senior residents.

Section 4. It is the intent of this ordinance that the Senior Tax Relief Grant Program grants be made during the first calendar quarter of 2006 to assist Seniors in meeting their tax obligations for 2005.

Section 5. The Trustee of the Metropolitan Government is directed to administer the Senior Tax Relief Grant Program in accordance with the provisions of this ordinance and such rules and procedures as the Trustee may establish as provided in this ordinance.

Section 6. The Trustee is authorized to establish such rules and procedures as the Trustee may deem necessary and appropriate for the implementation of the Program, so long as the rules and procedures are consistent with and in furtherance of the foregoing provisions. Rules and procedures adopted pursuant to this provision shall be subject to approval by resolution of the Metropolitan Council.

Section 7. The provisions of this Ordinance shall be subject to annual renewal pursuant to the provisions of Tennessee Code Annotated, Section 5-9-112.

Section 8. All applicable penalties, fines, and interest requirements established by local, state, and federal law, both criminal and civil, shall apply to representations made in order to receive a grant pursuant to this program.

Section 9. The provisions of this ordinance shall take effect upon the certification by the Election Commission that the increase in the local sales tax to 2.75 percent has been approved by the voters of Davidson County prior to January 1, 2006.

Section 10. This ordinance shall take effect from and after its final passage, the welfare of The Metropolitan Government of Nashville and Davidson County requiring it.

Sponsored by: Diane Neighbors, Amanda McClendon, Brenda Gilmore

LEGISLATIVE HISTORY
Introduced:	July 5, 2005
Passed First Reading:	July 5, 2005
Referred to:	Budget & Finance Committee
Substitute Introduced:	July 19, 2005
Passed Second Reading:	July 19, 2005
Passed Third Reading:	August 2, 2005
Approved:	August 3, 2005
By: