Senate Bill 2002 amends various sections of the Tennessee Code Annotated related to property taxes, specifically focusing on the limitations and procedures for ad valorem tax levies by counties, municipalities, and other taxing entities. The bill adds language to Sections 67-5-102(c) and 67-5-103(b) to ensure that existing limitations and restrictions in Section 67-5-510(b) regarding ad valorem tax levies remain in effect. Additionally, it replaces the entire Section 67-5-510 with new provisions that outline the responsibilities of governing bodies in setting tax rates, including a cap on total receipts from ad valorem taxes, which cannot exceed the previous year's receipts plus a two percent increase, with certain exceptions for new properties and general obligation bonds.

Furthermore, the bill establishes a process for tax entities to exceed the two percent limit, requiring a resolution, a public referendum, and a minimum approval of sixty percent from voters. It also mandates that any tax rate exceeding the certified tax rate must follow specific advertising and procedural requirements. The new provisions will take effect on July 1, 2026, and will apply to all tax years beginning on or after that date.

Statutes affected:
Introduced: 67-5-102(c), 67-5-102, 67-5-103(b), 67-5-103, 67-5-510, 67-5-1702