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SB2383 • 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
Akbari, Brooks
Last action
2026-03-24
Official status
Assigned to General Subcommittee of Senate State and Local Government Committee
Effective date
Not listed

Plain English Breakdown

The bill text does not specify an exact effective date beyond January 1, 2027.

Limiting Property Tax Rates in Tennessee

This bill sets a limit on how much property tax counties and municipalities can charge for general purposes.

What This Bill Does

  • Limits county property taxes to $3 per every $100 of the assessed value of the property.
  • Limits municipal property taxes to $2.50 per every $100 of the assessed value of the property.

Who It Names or Affects

  • Counties in Tennessee
  • Municipalities in Tennessee

Terms To Know

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

Limits and Unknowns

  • The exact amount of local government revenue that will be lost cannot be determined with certainty, but it is considered significant.

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

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

  3. 2026-03-18 Tennessee General Assembly

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

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

  6. 2026-03-11 Tennessee General Assembly

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

  7. 2026-03-11 Tennessee General Assembly

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

  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

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

  10. 2026-02-05 Tennessee General Assembly

    Assigned to s/c Cities & Counties Subcommittee

  11. 2026-02-05 Tennessee General Assembly

    P2C, ref. to State & Local Government Committee

  12. 2026-02-04 Tennessee General Assembly

    Intro., P1C.

  13. 2026-02-02 Tennessee General Assembly

    Introduced, Passed on First Consideration

  14. 2026-02-02 Tennessee General Assembly

    Filed for introduction

  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 
HOUSE BILL 2325
By Brooks

SENATE BILL 2383
By Akbari
SB2383
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.