Memphis Mayor Paul Young has put forth a proposal for a 75-cent property tax increase, sparking concerns from local business leaders and residents alike. The Greater Memphis Chamber has released a statement urging elected officials to explore alternatives to this tax hike, fearing its potential chilling effect on business investment in the city.

Mayor Young defended the tax increase during a recent Memphis City Council meeting, citing the need to address a $30 million budget shortfall and rising costs since the last tax raise in 2012. If approved, homeowners could see significant increases in their property taxes, with the average increase ranging from $15.66 to $46.92 per month, depending on the value of their homes.

However, alongside the tax hike proposal, Mayor Young outlined his budget plan, which allocates 72 percent of the budget for city personnel. Additionally, priorities include addressing school infrastructure needs, combating blight and litter, funding youth programming for public safety, and investing in neighborhood safety initiatives.

Memphis City Council officials will ultimately vote on the tax increase and budget proposal later this spring, with the decision expected to have significant implications for the city’s financial future and business climate.