Lever board urges delegation to oppose proposed state cap on municipal property tax

The Board of Mayor and Aldermen at a Feb. 26 workshop advanced a resolution urging the city’s legislative delegation to oppose any state-imposed cap on municipal property tax. The board’s action, introduced as Resolution 2026-10, was framed as a defense of local taxing authority and the city’s ability to fund services.

The Chair said the state proposal would prevent municipalities from raising property tax rates above 2% of the inflation rate without voter approval, and that the cap could be stacked over multiple years. "You can't do anything above 2% of the inflation rate without getting the overall resident approval," the Chair said, describing how the proposed limit would work.

Board member Bruce pointed to a frequently cited example used in the state debate, saying the Mount Juliet change was described as a roughly 160% shift — "12 cents to 29 cents," he said — which, he added, is the sort of claim drawing state attention to municipal levies. The Chair and others said multiple mayors and the Tennessee Municipal League have coordinated similar resolutions opposing the state approach.

Supporters of the city resolution argued the cap would reduce local control over revenue needed to maintain services. No formal local policy changes were proposed beyond the resolution asking the delegation to oppose the state measure; the board did not record a final vote on the state-cap resolution during the workshop.

The resolution is intended as a formal expression to the legislative delegation and to participating municipal associations; if the state bill advances, the board would have additional opportunities to testify or coordinate with TML. The board moved on to other business after the discussion.