County trustee: reappraisal is revenue-neutral but 'capacity' from higher assessments could add ~$44M to FY26

County Trustee Regine Newman told the Budget & Finance subcommittee that reappraisals are revenue-neutral under state law — the state will set a certified tax rate intended to prevent a windfall — but that the county will nonetheless realize additional tax capacity from restored assessment amounts and reduced sales-ratio adjustments.

Newman listed factors that affect property-tax revenue — the assessment total on the certified roll, appeals allowances, TIFs, pilot abatement amounts and collection rates — and said the county expects to collect roughly 97% of the levy again this year. “As of January 9, we had already collected almost 49% of the property tax revenue,” she said.

She described the county’s recent experience with the sales ratio and recapture: in the third year of the reappraisal cycle, Shelby County saw assessments reduced by about $30–31 million in tax revenue (she described that effect as occurring in years three and four), and with the 2025 reappraisal that decrease will be restored. Trustee Newman said the reappraisal cycle and state recapture mechanics mean the county could see an estimated $44,000,000 to $44,500,000 increase in capacity — roughly 18¢ on the tax dollar — before new construction or other growth is added.

Newman also reviewed TIF payout and pilot-abatement figures cited in the presentation (TIF payout ~ $10,300,000; pilot abatement last year ~ $41,400,000) and said the trustee’s office will update bills in December to reflect any state-assessed increases that arrive after initial billing.

She invited commissioners to review the trustee contact information in the presentation and encouraged questions about timing and system changes. Newman also noted the trustee office is implementing a new tax system expected to go live in March, which could expand automation and reporting.