Tennessee House Bill HB1361

Tennessee 2023-2024 Regular Session

• Introduced: 1/31/23
• Refer: 2/2/23
• Refer: 3/8/23
• Refer: 3/14/23

Caption

AN ACT to amend Tennessee Code Annotated, Section 67-5-704, relative to property tax relief.

Impact

The potential impact of HB1361 is significant, especially for middle-class families and individuals who own homes valued at or below the new threshold. By raising the exemption limit, the bill could provide a substantial relief to these homeowners, allowing them more disposable income and promoting economic stability. This change reflects a growing recognition of the need for property tax reform in light of increasing housing costs in Tennessee, thereby directly aligning tax policy with the financial realities faced by residents.

Summary

House Bill 1361 aims to amend Tennessee Code Annotated, specifically Section 67-5-704, which pertains to property tax relief. The bill proposes to increase the threshold for property tax exemption from $175,000 to $210,000. This adjustment directly impacts homeowners in the state, especially those with properties valued near or below this new limit, allowing for greater tax relief and financial support for a larger segment of the population. The bill is designed to ease the financial burden of property taxes during a period of rising real estate values.

Sentiment

The sentiment surrounding HB1361 is largely positive, as many constituents view it as a beneficial reform that supports homeownership and economic fairness. Legislators advocating for the bill emphasize its role in making housing more affordable and providing necessary financial relief to homeowners. However, some opponents may raise concerns about the long-term effects on state revenue and whether the bill adequately addresses the broader issues of funding for local services that often rely on property taxes.

Contention

Notable points of contention include the balance between providing tax relief and maintaining adequate state funding for essential services such as education and public safety, which are often funded through property taxes. Critics might argue that increasing the exemption limit could lead to reduced revenue for local governments, potentially impacting service delivery. Additionally, there may be questions regarding the sustainability of such tax relief measures and their long-term implications on state budget planning.