TN SB2002

Counties, municipalities, metropolitan governments, and other taxing entities are limited to increasing total ad valorem (property) tax receipts by no more than 2% annually compared to the prior fiscal year.

Revenue from newly constructed properties, properties added to tax rolls, and debt service on general obligation bonds issued before July 1, 2026 are excluded from the 2% cap calculation.

Exceeding the 2% limit requires a public referendum held during a regular November election, with 60% voter approval required for passage.

Any voter-approved increase above the 2% cap is limited to a maximum of 4 successive years and must specify the purpose, amount, and duration of the increased levy.

Effective July 1, 2026, applying to all tax years beginning on or after that date.