Hamilton County commissioners spent substantial time Nov. 12 weighing whether to keep and expand the county’s existing property tax relief match or adopt a new local tax freeze that would cap taxes for qualifying homeowners.

County administration staff summarized the core differences: the state’s long-standing tax relief program (established 1973) provides benefits to seniors and the disabled and sets an income-based eligibility threshold (state figure cited in the presentation: $37,530 for 2024, inflation-adjusted). The tax freeze program (introduced in Tennessee in 2007) generally allows higher income eligibility thresholds at the local commission’s discretion but limits qualifying acreage to five acres and requires the county to verify applicant qualifications.

"There is a cost to this tax freeze program, but there would be no benefit at all to passing it at this current time," the county presenter said, stressing that the freeze produces tangible savings for qualifying taxpayers only if the county raises taxes in a future year or at a reappraisal (the next reappraisal year cited in the briefing is 2029). The presenter estimated one-time implementation costs of approximately $350,000 (to hire staff, purchase software and set up office space) and ongoing annual costs near $250,000 to maintain staff to verify eligibility.

Officials listed current program scale and fiscal figures: 3,932 county taxpayers qualified for tax relief under the county match this year; county cost for the tax relief program in 2024 was cited as $921,000. The presenter said the immediate county-funded tax relief program provides an average benefit to qualifying taxpayers of about $248; an enhanced benefit was cited for certain disabled veterans or widows ($1,326 on the tax bill in the year cited).

Commissioners asked for further modeling and legal clarity. Several expressed preference for expanding the relief program (for example, increasing the county match above 100%) or asking state legislators to raise the state income threshold to broaden eligibility (several commissioners proposed drafting a resolution to request the state change the $37,530 figure). The administration said it would provide numerical modeling for local threshold options and indicated the county could contact other jurisdictions that operate dual programs to learn about their experience.

No formal vote was taken Nov. 12; commissioners scheduled further deliberation and requested staff modeling and contacts with comparable counties.