State plan to cap local property tax increases stalls
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A Tennessee bill that would radically overhaul how local governments set property tax rates seems to be dead for the session.
Why it matters: The bill would have limited local governments' ability to raise rates by requiring voter approval for any property tax rate increase over 2%.
The big picture: The legislation, from Republicans Rep. Bud Hulsey and Sen. Joey Hensley, was filed following an uproar over property tax bills in Nashville.
- Critics say local governments would be thrown into chaos if they had to hold referendums every time they wanted to raise revenue.
- Hulsey and Hensley's bill took the stance that governments should make the case to voters why taxes must go up.
The latest: The legislation was taken off notice this week in a key House committee, signaling it had almost certainly stalled for the year.
Flashback: Metro Council and Mayor Freddie O'Connell passed a 26% rate increase over the state-mandated equalized rate last year. The rate combined with soaring property values to create much larger tax bills for many owners.
- Rising property values downtown led to a major jump in appraisals there. A stable of hospitality businesses, led by the honky-tonk Acme Feed & Seed, have criticized the appraisal system.
Reality check: Nashville has rarely raised property taxes. Since 2005, the city has increased the rate just four times.
Friction point: The city's Board of Equalization is dealing with a record number of property appraisal appeals from owners eager to reduce their tax bills. Many property owners had to pay their bills while their appeals sat in the queue.
What we're watching: Metro Councilmember Courtney Johnston asked Republican lawmakers to pass a bill to loosen the board's rules so appeals could be heard more quickly.
Yes, but: There likely isn't enough time left in the session for lawmakers to consider Johnston's suggested changes.
In case you missed it: Read our story from December about the record number of appeals.