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HB2325 • 2026

Taxes, Ad Valorem

AN ACT to amend Tennessee Code Annotated, Title 67, Chapter 5, relative to property taxes.

Taxes
Active

The official status still shows this bill as active or still awaiting another formal step.

Sponsor
Brooks, Akbari
Last action
2026-03-18
Official status
Action Def. in s/c Cities & Counties Subcommittee to January 2027 Calendar
Effective date
Not listed

Plain English Breakdown

The official source material does not specify if the limits apply to all types of property taxes, only mentioning residential and municipal purposes.

Property Tax Limitation Act

This bill sets limits on how much property tax counties and municipalities in Tennessee can charge.

What This Bill Does

  • Limits county property taxes to $3 for every $100 of a home's value.
  • Limits city property taxes to $2.50 for every $100 of a home's value.

Who It Names or Affects

  • Counties and municipalities in Tennessee
  • Property owners who pay taxes

Terms To Know

Ad Valorem Tax
A type of tax based on the value of property.
Assessed Value
The official value of a piece of property used to calculate taxes.

Limits and Unknowns

  • It is not clear how much money local governments will lose from these limits.
  • This bill only affects Tennessee and does not change federal or other state laws.

Bill History

  1. 2026-03-24 Tennessee General Assembly

    Assigned to General Subcommittee of Senate State and Local Government Committee

  2. 2026-03-18 Tennessee General Assembly

    Action Def. in s/c Cities & Counties Subcommittee to January 2027 Calendar

  3. 2026-03-18 Tennessee General Assembly

    Placed on Senate State and Local Government Committee calendar for 3/24/2026

  4. 2026-03-17 Tennessee General Assembly

    Action deferred in Senate State and Local Government Committee to 3/24/2026

  5. 2026-03-11 Tennessee General Assembly

    Placed on s/c cal Cities & Counties Subcommittee for 3/18/2026

  6. 2026-03-11 Tennessee General Assembly

    Action Def. in s/c Cities & Counties Subcommittee to 3/18/2026

  7. 2026-03-11 Tennessee General Assembly

    Placed on Senate State and Local Government Committee calendar for 3/17/2026

  8. 2026-03-04 Tennessee General Assembly

    Placed on s/c cal Cities & Counties Subcommittee for 3/11/2026

  9. 2026-02-05 Tennessee General Assembly

    Assigned to s/c Cities & Counties Subcommittee

  10. 2026-02-05 Tennessee General Assembly

    P2C, ref. to State & Local Government Committee

  11. 2026-02-05 Tennessee General Assembly

    Passed on Second Consideration, refer to Senate State and Local Government Committee

  12. 2026-02-04 Tennessee General Assembly

    Intro., P1C.

  13. 2026-02-02 Tennessee General Assembly

    Filed for introduction

  14. 2026-02-02 Tennessee General Assembly

    Introduced, Passed on First Consideration

  15. 2026-02-02 Tennessee General Assembly

    Filed for introduction

Official Summary Text

Present law authorizes counties to levy an ad valorem tax upon all property subject to such a form of
taxation, for general county purposes. This bill limits the amount of such tax to $3 per $100 of assessed property value.

Present law authorizes a tax on property for municipal purposes, and requires that such a tax be collected by the same officers and in the same manner as county taxes. This bill limits the amount of such a municipal tax to $2.50 per $100 of assessed pro
perty value.

Current Bill Text

Read the full stored bill text 
SENATE BILL 2383
By Akbari

HOUSE BILL 2325
By Brooks
HB2325
012170
- 1 -

AN ACT to amend Tennessee Code Annotated, Title 67,
Chapter 5, relative to property taxes.

BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF TENNESSEE:
SECTION 1. Tennessee Code Annotated, Section 67-5-102(a)(2), is amended by
deleting the subdivision and substituting instead:
(2) The amount of such tax shall be fixed by the county legislative body of each
county; provided, that the amount of such tax shall not exceed three dollars ($3.00) per
hundred dollars of assessed value.
SECTION 2. Tennessee Code Annotated, Section 67-5-103(a), is amended by
designating the existing language as subdivision (1) and adding the following as a new
subdivision:
(2) A municipality shall not fix the amount of such tax at a rate that exceeds two
dollars and fifty cents ($2.50) per hundred dollars of assessed value.
SECTION 3. Tennessee Code Annotated, Section 67-5-1702, is amended by
designating the existing language as subsection (a) and adding the following as a new
subsection:
(b) Notwithstanding subsection (a), a county or municipality shall not fix a tax
rate that exceeds the limitations in § 67-5-102(a)(2) or § 67-5-103(a)(2).
SECTION 4. This act takes effect January 1, 2027, the public welfare requiring it.