Tennessee voters overwhelmingly approved a constitutional amendment on Tuesday that bans the state government from imposing property taxes. The measure, known as Amendment 2, passed with nearly 67% of the vote in the midterm elections.
However, the ban does not alter the property tax obligations of homeowners, as Tennessee has not levied a statewide property tax since 1949. The amendment specifically prohibits the state government from future property tax impositions, effectively locking in the current policy. Local property taxes, which fund cities and counties for services such as schools, emergency services, and infrastructure, remain unchanged.
"Banning a state property tax will not solve housing affordability on its own. But it does guarantee Tennessee will never add another bill to a burden families are already struggling to carry," stated Republican state Rep. Tandy Darby, the amendment's sponsor. He emphasized that the measure would not impact local taxes, ensuring that cities and counties can continue to fund essential services.
The amendment was supported by various business and real estate organizations, including Tennessee Realtors and the Tennessee Farm Bureau Federation. This move reinforces Tennessee's appeal as a low-tax state, which already offers no individual income tax on wages.
Critics of the amendment argued that it was largely symbolic and unnecessary, given that a state property tax was not being levied. They also expressed concerns that permanently removing the option could limit the state's future revenue flexibility and potentially affect its bond rating. Democratic state Sen. Heidi Campbell noted that the amendment might have unintended consequences for state revenue.
Amendment 2 was one of three constitutional changes approved by Tennessee voters on Tuesday, alongside measures addressing bail restrictions and crime victims' rights.