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The Tennessee Conservative [By Adelia Kirchner] –
The Tennessee General Assembly will be back in session next month and state lawmakers have already pre-filed legislation, including resolutions that could result in a constitutional amendment to permanently ban statewide property tax in Tennessee.
Senate Joint Resolution 1 (SJR0001), is sponsored by Sen. Ferrell Haile (R-Gallatin-District 18).
According to the bill summary, SJR0001, is “a resolution to propose an amendment to Article II, Section 28 of the Constitution of Tennessee, to prohibit taxation of property by the State.”
This legislation would prohibit the general assembly from “levying, authorizing, or otherwise permitting a state tax on property.”
Since its initial filing on November 6th, 2024, the resolution has gained several co-sponsors in the Senate including Senators Lowe, Walley, Bailey, Johnson, Briggs, White, Hensley, Pody, Stevens and Massey.
House Joint Resolution 2 (HJR0002), sponsored by Rep. Tandy Darby (R-Greenfield-District 76), aims to do the same thing as SJR0001.
Tennessee has not enforced a statewide property tax since 1949, relying on sales tax for its primary income instead. However, the Tennessee Constitution “as-is” allows for the legislature to reinstate that statewide property tax with just one bill.
During the 2024 legislative session, the Tennessee House and Senate both passed a joint resolution on the subject and laid the foundation for creating this constitutional amendment.
Should the resolution pass with a 2/3 majority vote in both legislative chambers during the 2025 legislative session, the constitutional amendment can be placed on Tennessean’s ballots in 2026.
Other property tax legislation that will be considered in 2025 includes:
House Bill 17 (HB0017) or the “Tennessee Retirement Savings Plan Act.”
This legislation was filed on November 25th, 2024, and is being sponsored by Rep. Charlie Baum (R-Murfreesboro-District 37).
According to the bill summary, this legislation would establish a Tennessee retirement savings board subject to “sunset review” in June of 2025, which would be “attached to the department of treasury in order to develop a defined contribution retirement plan for residents of this state who are employed for compensation in this state.”
The board would consist of seven members: a representative of employers, a representative with experience in the field of investments, a representative of an association representing employees, a member of the public who is retired, all appointed by the governor; the state treasurer or the treasurer’s designee; a member of the senate appointed by the senate speaker to be a nonvoting member of the board; a member of the house of representatives appointed by the speaker of the house to be a nonvoting board member.
HB0017 requires that the board develop a retirement plan and conduct a market and legal analysis of the plan. This plan would need to be established so that Tennesseans can start contributing to it no later than January 1st, 2028.
Senate Bill 12 (SB0012), sponsored by Sen. Page Walley (R-Savannah-District 26) was filed on December 10th, 2024.
The bill, as introduced, increases the reimbursement amount for property tax relief for disabled veteran homeowners from payment on the first $175,000 of the full market value of the home to payment on the first $200,000.
About the Author: Adelia Kirchner is a Tennessee resident and reporter for the Tennessee Conservative. Currently the host of Subtle Rampage Podcast, she has also worked for the South Dakota State Legislature and interned for Senator Bill Hagerty’s Office in Nashville, Tennessee. You can reach Adelia at adelia@tennesseeconservativenews.com.
