Bill > SB2002

This bill establishes new limits on how much counties, municipalities, metropolitan governments, and other taxing entities in Tennessee can increase their property tax revenue each fiscal year. Generally, these entities can only collect an amount no more than what they collected in the previous fiscal year, plus an additional two percent (2%). This two percent increase is calculated based on the previous year's total receipts, but it excludes revenue from newly constructed properties or properties added to the tax rolls, as well as taxes for general obligation bonds issued before July 1, 2026. However, if a taxing entity needs more revenue than this two percent increase allows, they can exceed this limit only after determining the need for additional funds, passing a resolution or ordinance to that effect, and holding a referendum where at least 60% of voters approve the increase. The notice for this referendum must specify the purpose of the additional funds, the amount of the tax levy, and how long the increased rate will be in effect, with any such increase limited to a maximum of four consecutive years and requiring approval in a regular November election. The bill also amends existing laws to ensure these new limitations are followed when setting tax rates.

Government Affairs

https://wapp.capitol.tn.gov/apps/Billinfo/default.aspx?BillNumber=SB2002&ga=114