NASHVILLE, Tenn. (WOKI / WVLT) — Tennessee voters will have the opportunity this November to decide whether the state should permanently prohibit a statewide property tax by adding the ban to the Tennessee Constitution.
Amendment II on the November ballot would make permanent what has effectively been Tennessee’s tax policy for more than 75 years. The state has not levied a statewide property tax since 1949, and current law sets the statewide property tax rate at zero percent.
If approved by voters, the constitutional amendment would prevent future state legislatures from imposing a statewide property tax. However, local governments would still be allowed to collect property taxes as they currently do to fund schools, public safety, and other local services.
Supporters argue the amendment would help preserve Tennessee’s reputation as a low-tax state and protect homeowners, businesses, and property owners from future statewide taxation.
Jack Powers, Vice President of Policy and Advocacy for the Beacon Center of Tennessee, said the state’s tax structure has helped attract families and businesses.
“Tennessee has done a really great job making this state a very attractive place to move, to raise a family, to earn a living,” Powers said. He argued that a statewide property tax could make the state less competitive and wants to ensure future lawmakers cannot pursue that option.
Opponents, however, contend the amendment would unnecessarily limit future policymakers.
State Sen. Heidi Campbell of Nashville argues Tennessee already relies heavily on other forms of taxation, including sales taxes, and that eliminating the option of a statewide property tax could force future leaders to depend even more on revenue sources that disproportionately impact lower-income residents.
Campbell also said the state may someday need additional revenue tools to address changing economic conditions or major infrastructure demands, including growth-related challenges associated with large corporate developments.
Supporters counter that Tennessee’s finances remain strong and that other options would be available if future budget needs arise.
The measure is one of several constitutional amendments appearing on Tennessee ballots during the Nov. 3 general election. If approved, the prohibition on a statewide property tax would become part of the Tennessee Constitution, making it significantly more difficult for future lawmakers to alter.
