Gov. Bill Lee is tossing Tennessee’s strained property tax relief program a $10 million lifeline, a one-year boost that keeps reimbursements flowing to low-income seniors and 100% disabled veterans for now. Veterans groups are glad to see the money, but state officials are already warning that the fuse is still burning on a longer-term funding problem.
What’s in the governor’s budget
Lee’s final budget proposal adds $10 million to the property tax relief fund, enough to keep the program running about another year, according to NewsChannel 5. The state already puts roughly $41.2 million a year into the program, but rising claims and benefit rules that heavily favor disabled veterans have been stretching that pot of money thin.
Comptroller warns shortfall will keep returning
Comptroller Jason Mumpower has told lawmakers that the tax relief program is chewing through its reserves and that “the issue will have to be revisited year after year” unless legislators plug in recurring dollars or tweak benefits. Fiscal projections shared in committee hearings indicate the shortfall is on track to grow into the millions, with estimates of about $10.3 million more needed by FY2027, based on testimony summarized in recent reporting.
Why veterans want the math fixed
Veterans advocates say one straightforward way to steady the program is to fix how reimbursements for disabled veterans are calculated so that rising market values do not quietly chip away at payments between county reassessments. Groups such as TNVET have pushed that change. Lawmakers have filed bills to either increase the market-value cap or adjust the formula, with those proposals tracked in committee activity on LegiScan. Advocates caution that boosting benefits without a steady revenue stream would only deepen the funding hole.
How to get help
The property tax relief program serves tens of thousands of Tennessee homeowners each year and is run through county trustee offices, according to the Tennessee Comptroller of the Treasury. Disabled veterans and surviving spouses can find eligibility details and application guidance from the Tennessee Department of Veterans Services, while local trustees handle sign-ups and paperwork.
With the governor’s recommendation now folded into the budget, the General Assembly must decide whether to turn this one-time infusion into recurring funding, rewrite benefit rules, or accept automatic cuts if the money runs short. If lawmakers sit on their hands, current law allows for proration, which would shrink individual reimbursements and could force homeowners to pay their property taxes up front and then wait for smaller checks later…