Bill > HB1873

This bill requires local governments in Tennessee, which are defined as counties, cities, metropolitan governments, or special taxing districts that can levy property taxes, to hold a referendum election before increasing real property tax rates beyond certain limits. Specifically, a local government cannot increase its total real property tax revenue by more than inflation plus two percent, or by more than inflation plus six percent over the preceding three years, unless voters approve the increase in a referendum. Inflation is defined as the most recent percentage change in the consumer price index. The bill also clarifies that "total revenue" excludes taxes collected from new construction. If a local government wishes to exceed these limits, its governing body must pass a resolution or ordinance by a two-thirds vote to call for a referendum, which must be held during a regular November election and specify the proposed tax rate and effective date. If a majority of voters approve, the tax increase can be implemented. However, these limitations do not apply to taxes levied to pay for bonds, actions taken by the comptroller of the treasury, or changes to utility rates. The bill also amends existing Tennessee Code Annotated sections to ensure these new referendum requirements are incorporated into the laws governing property tax levies.

Government Affairs

https://wapp.capitol.tn.gov/apps/Billinfo/default.aspx?BillNumber=HB1873&ga=114