Tennessee leaders ponder special session to address honky-tonk owners' tax concerns
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Top state Republicans are considering a special legislative session to address rising property taxes amid outcry from downtown Nashville honky-tonk owners.
Why it matters: Hospitality businesses in Nashville say they have been pushed to the brink and need the state government's help.
What they're saying: House Speaker Cameron Sexton confirmed through a spokesperson that he has spoken with Gov. Bill Lee's office and they "are looking at all possible solutions."
- State Sen. Jack Johnson also told "The Matt Murphy Show" on Tuesday he is "deeply, deeply concerned about the impact of these property taxes on some of these businesses."
- Johnson confirmed he has also spoken to Lee's office about the issue.
Catch up quick: Axios Nashville reported last year how property values skyrocketed on Lower Broad, with some building values increasing by over 400% during Davidson County's latest appraisal.
- State equalization law required the city to lower the property tax rate after the reappraisal process. But if your value went up more than the county-wide average of 45%, then your property taxes stood to increase.
- In response, a record-setting number of property owners appealed their appraisals. There are so many appeals that property owners won't have their appeals hearings until later this year, even though tax bills were due in February.
- Mayor Freddie O'Connell and the Metro Council also raised the property tax rate by about 26% as part of last year's budget.
Driving the news: Country artist John Rich, who owns a bar on Lower Broad, brought the issue back this month with a video he posted on social media.
- "The lights are going out on Broadway," he warned.
- Rich and other honky-tonk owners met with Sexton to discuss the issue.
Reality check: It's unclear what legislative solutions Republicans would pursue in a special session.
- State laws governing property taxes and appraisals delegate authority to local governments, so tailoring legislation to address a Nashville problem may be difficult to craft.
- Fiscal conservatives could push back against the idea of tax relief for only Nashville businesses.
- Prior to the increase, studies found that Nashville had one of the lowest effective property tax rates in the country. Nashville has only raised property taxes three times since 2005 — in 2012, 2020 and 2025.
What we're hearing: Advocates have pushed for property tax freezes for some hospitality and downtown businesses, specialized appraisals for the downtown area and other financial help from the state.
- In the most recent legislative session, the state redirected some tax money previously earmarked for Music City Center to provide small grants to downtown businesses.
- It's also possible Republican leaders will simply wait to tackle the issue next year.