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HB 2325

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 Shaundelle Brooks

HB 2325 caps property tax rates counties and municipalities can impose, potentially limiting local government revenue while providing taxpayer tax predictability.

Action Def. in s/c Cities & Counties Subcommittee to January 2027 Calendar
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Bill Summary · HB 2325

Legislative bill overview

HB 2325 proposes to establish legal caps on property tax rates that counties and municipalities in Tennessee can levy on real estate. The bill modifies Tennessee Code Annotated Title 67, Chapter 5, which governs property taxation. The specific rate limitations are not detailed in the bill summary provided.

Why is this important

Property tax rates directly affect homeowners' annual housing costs and municipal/county budgets for schools, infrastructure, and services. Imposing statewide rate limitations could constrain local governments' revenue-raising ability while potentially providing tax predictability for property owners. This is a consequential fiscal policy decision affecting both taxpayers and local government operations across the state.

Potential points of contention

  • Revenue impact on local services: Strict rate caps could reduce funding for schools, fire departments, law enforcement, and infrastructure in counties and municipalities that currently rely on property tax revenue
  • Equity across jurisdictions: Different regions have varying property values and service needs; uniform statewide caps may disadvantage lower-income areas or high-cost regions
  • Local control vs. state mandates: Localities traditionally set their own tax rates; state-imposed limits reduce municipal and county fiscal autonomy and responsiveness to community needs

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

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