Bill > HB2607

This bill, effective July 1, 2026, amends Tennessee law to limit how much counties, municipalities, metropolitan governments, and other taxing entities can increase their property tax revenue each fiscal year. Specifically, it establishes that these entities generally cannot collect more in property taxes than they did in the immediately preceding fiscal year, plus an additional two percent (2%). This two percent increase is calculated after excluding revenue from newly constructed or added properties and taxes for general obligation bonds issued before July 1, 2026. However, if a taxing entity needs more revenue, it can exceed this two percent limit, but only after adopting a resolution declaring its intent to do so, specifying the purposes and amount of the additional revenue, and holding a referendum where at least sixty percent of voters approve the increase, which would be limited to a maximum of four consecutive years. The bill also requires that any decision to exceed the certified tax rate, which is the maximum rate allowed by law, must comply with these new limitations and involve public notice and a hearing.

Government Affairs

https://wapp.capitol.tn.gov/apps/Billinfo/Default?BillNumber=HB2607&ga=114