SHELBY COUNTY — The Shelby County Board of Commissioners voted 8-5 to increase the property tax rate for Fiscal Year 2027. The new property tax rate is set at $2.70 per $100 of assessed value, up from the previous rate of $2.68.

The increase marks the first property tax hike in Shelby County in eight years. The new tax rate is projected to generate an additional $2.5 million in revenue to support a $1.6 billion operating budget.

Commissioners Shante Avant, Miska Clay-Bibbs, Britney Thornton, Henri Brooks, Matthew Szalaj, Charlie Caswell, Mickell Lowery, and Michael Whaley voted in favor. Commissioners Mick Wright, Amber Mills, David Bradford, Brandon Morrison, and Erika Sugarmon voted against the tax increase.

Shelby County Mayor Lee Harris had initially proposed a tax rate of $2.66 in May. Commissioner Michael Whaley previously suggested a property tax rate of $2.71. The approved budget includes a 1% pay increase for all county employees.

The budget allocates $29.4 million for indigent care, a $5.4 million increase from the previous fiscal year. The Shelby County Sheriff's Office will receive $207 million in funding, an increase of $27.1 million over Fiscal Year 2026. Commissioners also approved a $4.3 million funding settlement with Sheriff Floyd Bonner to address unpaid overtime issues from Fiscal Year 2026.

The Capital Improvement Plan budget totals $176.7 million. Within this, $11.8 million was redirected from construction funding for a new K-8 Treadwell Elementary School to be spent on deferred maintenance at several Memphis Shelby County district schools. Commissioners also approved a $1.7 billion school district budget for Fiscal Year 2027.