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SB 2383

Taxes, Ad Valorem - As introduced, establishes limitations on the property tax rates set by a county or municipality. - Amends TCA Title 67, Chapter 5.

114th Regular Session (2025-2026) Introduced by Raumesh Akbari

SB 2383 caps property tax rates counties and municipalities can levy, limiting local government revenue while protecting property owners from tax increases.

Placed on Senate State and Local Government Committee calendar for 3/24/2026
#advalorem #taxes
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WeVote Research Nonpartisan
Bill Summary · SB 2383

Legislative bill overview

SB 2383 would establish legal caps on the property tax rates that Tennessee counties and municipalities can levy on real property. The bill amends the state's tax code to create limitations on ad valorem (property value-based) taxation at the local level, potentially preventing unlimited rate increases by local governments.

Why is this important

Property taxes are a major revenue source for local schools, infrastructure, and services. Rate caps could reduce local government funding capacity while potentially protecting property owners from escalating tax burdens. This directly affects both household finances and the ability of counties and cities to fund essential services like education and public safety.

Potential points of contention

  • Local autonomy vs. state control: Municipalities argue they need flexible tax rates to respond to budget needs; state-level caps limit their independent decision-making authority
  • Service funding impact: Schools and services funded by property taxes may face budget constraints if rates cannot increase with inflation or population growth
  • Unequal burden: Rate caps may disproportionately affect growing communities with expanding infrastructure needs while benefiting stable or declining areas
  • Implementation details unclear: The bill's specific cap percentages and exemptions (if any) aren't detailed in this summary, creating uncertainty about actual effects

Compiled from official sources — confirm details with the bill’s official record.

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