TN SB2064

Local governments in Tennessee cannot increase property tax rates that would cause total revenue to exceed inflation plus 2% annually, or inflation plus 6% over three years, excluding revenue from new construction

Tax rate increases exceeding these limits require a referendum election, which must be called by a two-thirds vote of the governing body and held during a regular November general election

Exemptions apply to taxes levied for bond payments, actions by the comptroller of the treasury, and local government utility rate changes

Governing bodies must advertise intent to exceed the certified tax rate on their website and in a newspaper, then furnish an affidavit of publication to the state board of equalization within 30 days

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