Image Credit: Tennessee Comptroller & Canva
The Tennessee Conservative [By Olivia Lupia] –
Tennessee Comptroller of the Treasury Jason Mumpower is clashing with Rutherford County Property Assessor Rob Mitchell as Mumpower seeks to have single-family rental homes classified as commercial property instead of residential for tax assessments, a move which could drive a substantial increase in rent for thousands of Tennessee families.
According to Mitchell, assessing rental homes as commercial instead of residential unfairly increases costs which can be passed on to tenants as commercial property tax rates are higher than residential, causing rents to potentially surge by 60%. He also says that while the dispute is centered in Rutherford County for now, this policy change could end up affecting the more than 350,000 rental homes across the state.
Comptroller Mumpower has stated that Rutherford has come under scrutiny because his office found a high rate of assessment errors in the county and had to seek $55 million in additional property value through corrective action.
“Mr. Mitchell seems to be a person that wants to assess property based on his opinion, not the law,” Mumpower said. “These kinds of issues don’t exist in any other county in this state.”
For decades, Tennessee has classified property by use, providing stability and predictability for homeowners, renters, and local governments, but the push for reclassification has been gaining momentum in the last few years, as evidenced by similar struggles in a 2023 lawsuit in Sevier County and pushback by residents of Sumner County in 2025, though in those cases the county property assessor was spearheading the reclassification.
Some officials have cited the narrow court decision in the Sevier County lawsuit as justification for their attempts at reclassification, but that case reportedly addressed timeshare arrangements involving multiple units within a single property structure, not traditional single-family homes.
Tennessee Attorney General Jonathan Skrmetti also issued an opinion on the classification of residential property on August 25, 2005, responding to a question from Republican Senator Becky Massey asking about the “appropriate tax classification for a single-family stand-alone property that is being rented for periods longer than 30 days?”
Skrmetti wrote, “A single-family, stand-alone property that is being rented for periods longer than thirty days generally will be classified as residential, subject to the caveats discussed below,” and cited Tennessee code which specifically states, “residential property containing two (2) or more rental units is defined as industrial and commercial property.”
“Nevertheless, the courts have recognized circumstances where single-family, unattached homes may be considered industrial and commercial property,” he continued. “Accordingly, there is no bright-line rule that a single-family, stand-alone home or an owner-occupied duplex will always be classified as residential. Rather, the property assessor should consider all the facts and circumstances of the rental property’s characteristics to make a proper classification of the property.”
Therefore, it appears that Assessor Mitchell may have standing to resist the comptroller’s reclassification bid, and State Representative Tim Rudd seems to agree, backing Mitchell and saying he personally asked Mumpower why the state was pressuring Rutherford County. “He told me, ‘I’m trying to help locals raise revenue,’” Rudd relayed. “And I responded, well, that’s not your job.”
But Mumpower denies ever making that statement, “I have nothing but the utmost respect for my friend Representative Rudd. But assessment work is about valuation, not revenue. I would have never said anything like that.”
Rudd remains resolute in his defense of Mitchell, saying, “He is a champion of the homeowner. He’s a champion of the citizens of Rutherford County and Tennessee. He is trying to stop something that’s illegal.”
And Mitchell’s attorney believes the controversy boils down to his willingness to challenge the state. “The reason Rob Mitchell is under attack today is because he’s a populist assessor,” the attorney said. “His policies make him a hometown hero of Murfreesboro. He’s given back more than $6 million to taxpayers in that county. The state is wanting to mandate just the opposite. And so he’s standing his ground.”
As the issue of reclassification is now tied up in legal appeals, Mumpower said he cannot comment on them. But Mitchell is urging Tennesseans to contact their elected officials asking them to “take immediate and decisive action to protect your constituents from this harmful policy.”
He suggests asking State Senators and Representatives to introduce or support legislation explicitly codifying that all single-family residential homes be assessed as residential property regardless of rental status, launch an investigation into the actions and motivations of the Comptroller’s office regarding the statewide reclassification push, and to offer their public support of local property assessors like Mitchell who are following the law and “protecting homeowners and renters from predatory taxation.”
He also encourages constituents to ask Gov. Bill Lee’s to hold the Comptroller accountable and contact their local property assessor and urge them to resist commercial reclassification.
“Reclassifying a family home as commercial property isn’t just a paperwork change, it’s a massive hidden tax hike. Young families lose their chance to save for a mortgage. Renters face displacement. And despite claims of ‘accuracy,’ state representatives say this is really about forcing local governments to extract more revenue from citizens,” Mitchell wrote in a release sent to The Tennessee Conservative.
About the Author: Olivia Lupia is a political refugee from Colorado who now calls Tennessee home. A proud follower of Christ, she views all political happenings through a Biblical lens and aims to utilize her knowledge and experience to educate and equip others. Olivia is an outspoken conservative who has run for local office, managed campaigns, and been highly involved with state & local GOPs, state legislatures, and other grassroots organizations and movements. Olivia can be reached at olivia@tennesseeconservativenews.com.
