NASHVILLE, Tenn. – State Rep. Bud Hulsey, R-Kingsport, has filed legislation to protect homeowners in Tennessee from exorbitant local property tax hikes. House Bill 2607 would cap property tax increases at no more than 2% per year, with a limited exception for municipalities that deem additional increases necessary. “Homeownership is central to the American dream, […]
NASHVILLE, Tenn. – State Rep. Bud Hulsey, R-Kingsport, has filed legislation to protect homeowners in Tennessee from exorbitant local property tax hikes.
House Bill 2607 would cap property tax increases at no more than 2% per year, with a limited exception for municipalities that deem additional increases necessary.
“Homeownership is central to the American dream, but excessive property tax hikes are threatening the stability of Tennessee families,” said Hulsey. “Government at all levels must live within its means and respect the private property rights of residents. This proposal helps ensure all Tennesseans, including senior citizens and those on fixed incomes, are never taxed out of the homes they’ve spent their lives working to own.”
Local governments could exceed the 2% cap for up to four years only if a referendum is held and at least 60% of voters approve the proposed increase. Referendum notices must include the purpose for the additional revenues, the amount of tax to be imposed and the period of time for the increased rate to remain in effect.
Tennessee is one of four states that do not limit local property tax hikes. Several municipalities across the state have significantly raised property taxes in recent years, including a 60% increase in Davidson County since 2020.
A recent statewide poll revealed 90% of Tennessee voters support the state limiting how much local governments can increase property taxes. Tennesseans also back requiring voter approval for hikes that exceed the prescribed limit.
The Volunteer State has not had a state property tax since 1949. Republican lawmakers in 2024 approved a proposed amendment to Tennessee’s Constitution to ensure a state property tax can never be implemented by a future General Assembly. The amendment will now be on the ballot for voters to decide on Nov. 3, 2026.
Tennessee is among the most fiscally stable states in the nation with one of the lowest tax burdens per capita. Republicans remain committed to managing public funds wisely and keeping taxes low.
House Bill 2607 will be considered in the House Cities and Counties Subcommittee in the coming weeks.
State Rep. Bud Hulsey represents District 2 in the Tennessee House of Representatives, which includes part of Sullivan County.