Tennessee House Bill HB0941

Tennessee 2025-2026 Regular Session

• Introduced: 2/4/25
• Refer: 2/6/25

Caption

AN ACT to amend Tennessee Code Annotated, Title 67, Chapter 5, Part 7, relative to elderly, low-income homeowners.

Summary

HB0941 revises Tennessee’s property tax relief program for elderly, low-income homeowners. The bill changes how reimbursement is calculated by tying relief to the taxpayer’s age and the property’s assessed value, and it sets a new cap on the assessed value eligible for relief at $400,000 unless adjusted by the appropriations act or future inflation indexing. Beginning in tax year 2027, that assessed-value cap would increase annually based on the Consumer Price Index for All Urban Consumers, with the Comptroller required to notify taxpayers and publish the updated amounts. The bill also restructures the age-based benefit schedule. Under the proposal, a taxpayer age 65 would receive 10% of property tax paid as reimbursement, with the percentage increasing by 10 points for each additional year of age until reaching 100% at age 74 and older. The bill specifies that the relief is calculated using the assessed value, a 25% assessment ratio, and a tax rate adjusted to reflect the local relationship between appraised and market value as determined by the State Board of Equalization. The act would take effect July 1, 2025, and apply to tax years beginning on or after that date.

Impact

HB0941 would amend Tennessee Code Annotated Title 67, Chapter 5, Part 7, which governs property tax relief for elderly and low-income homeowners. It would change eligibility and reimbursement calculations for the state’s tax relief program, establish an assessed-value ceiling for qualifying property, and create automatic inflation indexing for that ceiling starting in 2027. The bill would affect eligible senior homeowners, local property tax administration, and the Comptroller’s notice and publication duties.

Sentiment

There is no committee transcript or recorded vote history provided with the bill materials, so the available context does not show formal debate or measured support/opposition. Based on the text alone, the bill appears designed to expand and clarify property tax relief for older homeowners while also limiting relief for higher-value properties, suggesting a policy balance between targeted assistance and fiscal restraint.

Contention

The main potential points of contention are the $400,000 assessed-value cap, the annual inflation adjustment beginning in 2027, and the steep age-based reimbursement schedule that reaches full reimbursement at age 74. Supporters would likely emphasize relief for elderly and low-income homeowners and predictability through indexing, while critics may focus on the fiscal cost to the state, the breadth of benefits for higher-age taxpayers, and whether the property-value threshold is too high or too low for a targeted assistance program.