Tennesseans pay municipal and county property taxes, but did you know that some states also have a statewide property tax in addition to these local taxes? In fact, Tennessee collected a state property tax into the 1940s, and the state could reimpose collection today. A statewide property tax would drive up the cost of housing, both owner-occupied and rental, and increase the cost of owning and operating businesses and farms, limiting job growth.
The Tennessee General Assembly is considering a proposed constitutional amendment (SJR 1/HJR 2) to ban a statewide property tax. This proposal does not impact local government property taxes. This will improve Tennessee’s economic climate and ensure Tennessee remains one of the best states to live and to start and grow a business.
The proposed statewide property tax ban must pass each legislative chamber by a 2/3s majority during the 114th General Assembly. Then, it will be added to the November 2026 general election ballot for voter consideration. If over half of the voters voting in the governor’s race vote for the proposal, the ban will be added to the state constitution.