Tennessee Senate Bill SB1173

Tennessee 2025-2026 Regular Session

• Introduced: 2/6/25

Caption

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

Summary

SB1173 amends Tennessee’s property tax relief program for elderly, low-income homeowners. The bill changes the reimbursement rules in Tennessee Code Annotated § 67-5-702 by setting a cap on the assessed value eligible for relief at $400,000, unless a different amount is provided in the appropriations act or later adjusted under the bill’s inflation formula. Beginning in tax year 2027, that cap would be indexed annually to inflation using the Consumer Price Index for All Urban Consumers, with the increase limited to a range of 0% to 3% and rounded to the nearest $100. The bill also rewrites how the amount of relief is calculated. It ties reimbursement to the taxpayer’s age and the property tax owed on the assessed value, using the jurisdiction’s adjusted tax rate and a 25% assessed-value calculation. Under the new schedule, a taxpayer age 65 would receive 10% of property tax paid, with the reimbursement increasing by 10 percentage points for each additional year of age, reaching 100% for taxpayers age 74 or older. The bill takes effect July 1, 2025, and applies to tax years beginning on or after that date.

Impact

The bill would amend Tennessee’s property tax relief statute for elderly homeowners, changing both eligibility limits and the formula used to calculate reimbursement. It would affect the state’s administration of property tax relief through the Comptroller of the Treasury and the State Board of Equalization, and it could increase or redistribute relief payments for qualifying low-income senior homeowners depending on age and property value. It also introduces a new inflation-adjusted cap on the assessed value eligible for reimbursement, which would require annual notice and website posting by the Comptroller.

Sentiment

No committee transcripts or recorded votes were provided, so there is no direct evidence of debate or formal support/opposition in the available materials. Based on the bill text, the measure appears designed to expand and modernize property tax relief for elderly homeowners, suggesting a generally pro-tax-relief policy intent. The absence of voting history or discussion prevents a more specific assessment of legislative sentiment.

Contention

The main potential points of contention are the bill’s fiscal impact, the new assessed-value cap, and the age-based reimbursement schedule. Supporters would likely favor the expanded and more predictable relief for elderly, low-income homeowners, especially the inflation indexing and the higher-value property cap. Opponents or fiscal conservatives might question the cost to the state, the administrative complexity of annual CPI adjustments, and whether the age-based step-up to full reimbursement at age 74 is the best way to target need.