Over the past decade, Lakeland residents have seen many changes when it comes to property taxes. For several decades there was no property tax at all until being introduced by former Mayor Scott Carmichael in 2012 at the rate of .85 per $100 of assessed value. As the years have gone by most residents view the changes as a positive shift since it brought new schools to Lakeland as well as the ability to add additional services. Over that time, the city has seen a gradual increase to its current rate of $1.19 per $100 of assessed value.
The rate gradually increased over the years to help fund the new Lakeland School System, as well as the need for new school buildings. Last year the rate was increased for the first time in several years to help fund the Lakeland Gateway TIF district, the area near the Interstate 40-Canada Road interchange. That incase allowed the city to buy the Econo Lodge Motel and The Relax Inn Motel, both of which have since been demolished and removed.
Lakeland’s Board of Commissioners (BOC) recently held a special budget workshop to review the proposed 2025 annual budget, which includes maintaining the current property tax rate of $1.19 going into next year. The $1.19 maintains Lakeland’s position as the municipality with the lowest property tax in Shelby County. Mayor Josh Roman told Lakeland Currents taxes are an unfortunate, but necessary part of a city flourishing saying, “Taxes suck; they are a necessary evil to accomplish our goals as a city. I will always do what I can to keep them low. It is a testament to the board of commissioners and city staff to be able to keep our property tax rate the lowest in Shelby county while still meeting the needs of our citizens.”
Several large projects are planned for FY25, including a new Lakeland YMCA community center, which will be built in the former location of the Econo Lodge Motel. Funds will also be used on Phase 2 of the Lakeland athletic complex on Memphis-Arlington Road, as well as recreational baseball and softball facilities. The 2025 general fund budget also includes $6 million generated through a Tax Increment Finance (TIF) loan for a possible new Shelby County Sheriff’s Office partnership complex, which could be located where the Relax Inn once stood. According to city officials, using TIF funds for this project will help the city avoid taking on additional debt.
Michael Walker, City Manager for Lakeland, told the BOC it was important to maintain momentum to complete these projects, stating that design work on the sheriff’s office facility could begin immediately upon passage of the budget’s second reading in mid-May.
