Property Tax Increases Rampant In Tennessee, Efforts To Cap Increases Stymied

Property Tax Increases Rampant In Tennessee, Efforts To Cap Increases Stymied

Property Tax Increases Rampant In Tennessee, Efforts To Cap Increases Stymied

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The Tennessee Conservative [By Adelia Kirchner] –

The efforts of some Tennessee lawmakers to cap property taxes have been repeatedly stalled as property tax increases continue to be proposed by local governments throughout the state.

“It is clear that people are unhappy with the current property tax system in Tennessee,” Beacon Center Vice President of Communication and Outreach, Mark Cunningham said after the center put out poll results showing that 67% of registered voters in Tennessee support a state property tax cap “so long as property tax increases have to be approved by voters via referendum.”

Prime examples of attempts to hike up property taxes all across Tennessee in recent years include the following:

• Nashville residents saw a 34% property tax increase in 2020.

• Williamson County commissioners approved a $650 million budget in July of 2021 facing residents with an 8% increase in property taxes.

• Rutherford County residents faced a 16% property tax increase in 2023.

• Greene County residents faced a 30% increase in property taxes in 2023.

• Red Bank residents faced a 52% property tax increase in 2023.

• Washington County residents saw a 54% jump in property value following a new tax assessment in early 2024.

• Memphis’ Mayor proposed a 75-cent property tax increase in April of 2024.

Reappraisal rates have skyrocketed in Tennessee this year with a 72.8% increase for Cheatham County residents, a 52.7% increase for Dickson County residents, a 67.1% increase for Sumner County residents, and a 64.9% increase for Montgomery County residents according to the Tennessee Comptroller’s Office.

House Bill 565 (HB0565)/Senate Bill 171 (SB0171), sponsored by Rep. Chris Todd (R-Madison County-District 73) and Sen. John Stevens (R-Huntingdon-District 24), was filed back in January of 2023 and would have capped property tax increases in the state at 2% plus inflation each year with an additional cap of 6% plus inflation over the span of three years.

This legislation would have applied to counties, cities, metro governments and special school districts with the ability to levy property taxes, and a referendum would have been required for these entities to enforce any higher of a percentage increase.

But HB0565/SB0171 never progressed any further than being assigned to the House Property and Planning Subcommittee and the Senate State and Local Government Committee in 2023. The legislation did not move forward in 2024 either.

However, state lawmakers did pass legislation in 2024 to double the amount of land that falls under Tennessee’s greenbelt program, allowing big farms and agricultural owners to profit from an 80% to 90% reduction in property taxes, with a 6% per year cap for protection.

There were 6 counties, 24 cities and one special school district that exceeded HB0565/SB0171’s proposed increase cap in 2022 alone, according to Center Square Reporter, Jon Styf.

Exceeding the proposed cap in 2021, there were 3 counties, 37 cities, and 6 special school districts. In 2020, there were 7 counties, 22 cities, and one special school district. 

Still, some worry that Tennessee could be heading towards a tax policy resembling California’s Proposition 13 property tax cap, warning Tennesseans to remain cautious.

“Proposition 13 has been a cornerstone of property tax policy in California for 45 years, promising relief for homeowners,” wrote Rutherford County Property Assessor, Rob Mitchell. “However, a closer look reveals that its impact has been far from the intended benefits, providing a cautionary tale for states like Tennessee.”

About the Author: Adelia Kirchner is a Tennessee resident and reporter for the Tennessee Conservative. Currently the host of Subtle Rampage Podcast, she has also worked for the South Dakota State Legislature and interned for Senator Bill Hagerty’s Office in Nashville, Tennessee. You can reach Adelia at adelia@tennesseeconservativenews.com.

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9 Responses

  1. moved from the West coast due to property taxes. We the people are taxed to death and it never stops. Income tax is truly unconstitutional and we continue to pay tax over and over again on the same money. Stop the property tax increases NOW! Let us all work on getting rid of Income tax.

  2. What effect do the illegals coming into TN have on these tax increases. They are sending their kids to our schools and social benefits and they pay nothing in taxes. How many cities and counties could have cut wasteful nice to have spending rather than raise property taxes?? They never make cuts they only ever increase the burden on the tax payer. I say what we really need is to end all property tax and replace it with a small sales tax increase that will be paid by EVERYONE that spends in TN and that would cover even those that pay no property taxes but utilize our state resources. It can be done if there is a will but the elected never want to do anything that might require some real hard work and some intelligence. END PROPERTY TAXES. As long as you pay property taxes you NEVER own your property.

    1. K.Bracken
      Spot on.
      Perhaps the place to start are ( the quickest) is to gradually abolish agencies and incrementally raise designated sales tax.
      At the same time reduce federal income, property and investment taxes and many more.
      Alas our politicians have such grand spending aspirations for their self agrandizment, very few see the logic in sensible constitutional taxation.
      WOW
      Just imagine the reduction in the number of federal employees there’d be

    2. THAT is a start but we need to cut all taxes, property tax is a never ending SCAM, and only property owners pay the tax. NOW in WARREN COUNTY they add a WHEEL TAX.

  3. People will lose their generational wealth and farms if a state wide cap isn’t passed. I saw it in Washington State (also without an income tax) and I’d hate to see it here. Having to sell inherited homes because this generation can’t afford the tax is heartbreaking. Hear from the man who got a California Democrat to pass Prop 13 in 1978 unleashing economic boom, Art Laffer https://rumble.com/v4owa3t-heartland-journal-podcast-192b-special-edition-dr-arthur-laffer.html

  4. Why invite the state in? It is locally elected people who are doing this on commissions. WAKE UP THE POPULATION, recall or vote OUT.

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