NASHVILLE, Tenn. (WKRN) — Tennessee is one of just four states without a cap on local property tax increases, but one bill could change that.
The bill, sponsored by Rep. Jason Zachary (R-Knoxville), would limit cities and counties from raising property taxes more than 2% per year over three years, unless a majority of voters approved a larger increase through a referendum. If a municipality did not raise property taxes for two years, it could approve a 6% increase in the third year under the bill.
“You could actually bank those 2%, so if you get to the third year and the county or municipality has not increased property taxes, then they can do that on that third year up to 6%,” Rep. Zachary said…