AN ACT to amend Tennessee Code Annotated, Title 67, Chapter 5, relative to property taxes.
Summary
SB2383 would cap local property tax rates in Tennessee by setting a maximum county property tax rate of $3.00 per $100 of assessed value and a maximum municipal property tax rate of $2.50 per $100 of assessed value. The bill amends Tennessee Code Annotated Title 67, Chapter 5, which governs property taxes, and makes clear that counties and municipalities may not set rates above those new limits.
The measure would take effect on January 1, 2027. In practical terms, it would constrain local taxing authority by placing statewide ceilings on the amount counties and cities can levy through property taxes, potentially affecting local revenue collections, budgeting, and future tax-rate decisions.
Impact
The bill would amend the state property tax statutes in Tennessee Code Annotated §§ 67-5-102, 67-5-103, and 67-5-1702 to impose explicit rate caps on county and municipal property taxes. It would limit county rates to no more than $3.00 per $100 of assessed value and municipal rates to no more than $2.50 per $100 of assessed value, overriding any local rate-setting authority above those thresholds. Counties, municipalities, taxpayers, and local budget officials would be directly affected by the new statewide limits.
Sentiment
No committee transcripts or recorded votes were provided, so there is no direct evidence of debate, support, or opposition in the available materials. Based on the text alone, the bill appears to reflect a policy preference for limiting local property tax burdens and standardizing maximum rates across jurisdictions.
Contention
The main point of contention would likely be the balance between taxpayer relief and local government fiscal flexibility. Supporters would likely favor the bill as a cap on property tax increases and a restraint on local taxation, while opponents—especially counties and municipalities—could argue that the limits would reduce local control and constrain revenue needed for public services, infrastructure, and schools. Because no discussion transcript is available, specific objections or sponsors' arguments cannot be identified from the record provided.