A proposed constitutional amendment in Tennessee that would permanently ban a state property tax has gained momentum in the legislature. Senate Joint Resolution 1 (SJR1) has passed critical hurdles and is now set for a full Senate vote.
Currently, Tennessee does not have a state property tax, with property taxes being levied and collected at the local level. SJR1 aims to enshrine this policy in the state constitution, prohibiting any future state-imposed property taxes. Tennessee’s property tax rates are among the lowest in the U.S., with an average effective rate of 0.58%. However, local rates vary, with Shelby County (home to Memphis) at 1.12% and Knox County at 0.52%. These local taxes fund services like education and infrastructure.
Supporters of SJR1 argue that making the ban permanent would offer property owners long-term certainty, protecting them from potential future tax increases at the state level. One prominent supporter, Tennessee REALTORS Associationpresident Will Sliger, praised the amendment, stating that without a state property tax, property owners would not face additional tax burdens, which could lead to lower housing costs and more affordable housing development.
“Tennessee REALTORS supports SJR1 to prohibit the General Assembly from levying, authorizing, or otherwise permitting a state tax on property. Without a state property tax, property owners will not have to worry about paying an additional tax on top of what they pay for local property tax. This lowers their overall costs of ownership for Tennesseans, which can translate into lower rent prices or more incentive to build and maintain affordable housing options.”
However, critics of the measure warn that it could restrict the state’s ability to generate revenue in the future, potentially complicating efforts to fund statewide services.
The next step for SJR1 is a full Senate debate and vote. If passed, it will move to the House for consideration. Should both chambers approve the amendment, it will be placed on the ballot for voters to decide in the next statewide election.
