NASHVILLE, Tenn. (WZTV) — A plan to permanently ban a state property tax in Tennessee will go to the state House and Senate and amend the state constitution.
Tennessee currently does not have a state property tax because it is reserved for local governments, but some supporters say they want to prevent the state from raising taxes in the future.
Others believe that this resolution has loopholes that could be very dangerous.
Tennessee lawmakers are pushing for a constitutional amendment to permanently ban state property taxes.
Rob Mitchell, Rutherford County Assessor of Property, says he has wanted this for the past eight years after he noticed the state constitution left the door open for this tax.
“Let’s limit what the government can take from us. This is something they’re not taking right now, so let’s just make sure they never do, Mitchell said.
State Sen. Heidi Campbell says no one at the state level has tried to change that over the past few decades in the Legislature.
“Tennessee is not doing this. There’s really no need for a constitutional amendment. It hasn’t taxed property in decades,” Senator Campbell stressed.
Mitchell argues if you don’t need it, why leave it in the constitution? Especially when the council could levy a tax.
“It is easy to raise taxes. Especially on taxes on someone else to spend it on things they might not want,” Mitchell emphasized.
Senator Campbell explains that the franchise tax, which is a tax on businesses, includes a portion of the property tax and she emphasizes that this can have a big impact.
“If we pass this and someone decides this is legally applicable to it, we could lose millions in revenue and every time we do something like that, it also threatens our bond rating,” Senator Campbell said.
If the resolution passes, Tennesseans will have the opportunity to vote on it on the November 2026 ballot.
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