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 existing properties added to the tax rolls.

Furthermore, the bill establishes a process for increasing the tax rate above the two percent limit, requiring a governing body to determine the need for additional revenue, adopt a resolution, and hold a referendum where at least sixty percent of voters must approve the increase. It also modifies Section 67-5-1702 to stipulate that no tax rate exceeding the certified tax rate can be levied without following specific procedures, including public notice and compliance with the limitations set forth in Section 67-5-510(b). The act is set to 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