Get Full Government Meeting Transcripts, Videos, & Alerts Forever!
Get email alerts on the Property Tax Cap topic
No spam. Unsubscribe anytime.
Lawmakers advance property-tax cap amendment after hours of debate over local impacts
Summary
The Cities and County Subcommittee advanced an amended proposal to cap annual property-tax increases at 3% (plus inflation, bankable over four years), with carve-outs for bond payments. Local government groups warned the cap could hamper services and affect bond ratings; business owners pressed for limits on steep tax spikes.
Deputy Speaker Zachary told the committee the amended package would cap property-tax increases at 3% per year and allow jurisdictions to ‘bank’ unused increases over a four-year period, while accounting for inflation. “This legislation will cap the property tax increase at 3% for 4 years,” he said, describing a mechanism intended to let voters hold local officials accountable while preserving limited flexibility for municipalities.
Cities and counties pressed back. Chad Jenkins of the Tennessee Municipal League said Tennessee’s local governments rely heavily on property tax as a principal revenue source and warned the statewide cap would be a significant revenue change: “cities have 2 primary revenue streams sales tax and property tax,” he said, arguing the change would limit resources for core services. David Connor of the Tennessee County Services Association said many counties depend on property taxes for schools, public safety and other mandated services and raised concerns about bond costs and referendum timing.
Business owner Kerry Bridal described large, recent jumps in property bills and urged relief for small proprietors who face rapid tax increases: “In the past 12 years… my property taxes have gone from $9,900 to $77,000,” she said. The sponsor said the amendment includes language to preserve bonding capacity and allows locals to exceed limits by referendum when necessary.
After extended questioning on subjects ranging from bond ratings to whether the cap would have prevented past crisis responses, the committee adopted amendment 14,637 and voted 5–2 to move the bill to the State and Local Government calendar. The bill now faces additional committee consideration and possible floor action.
