Tennessee House Bill HB2054

Tennessee 2023-2024 Regular Session

• Introduced: 1/24/24
• Refer: 1/29/24
• Refer: 3/20/24
• Refer: 3/26/24
• Refer: 4/17/24
• Engrossed: 4/23/24
• Enrolled: 4/30/24
• Passed: 5/21/24
• Chaptered: 5/28/24

Caption

AN ACT to amend Tennessee Code Annotated, Title 67, Chapter 5, relative to property taxes.

Impact

If enacted, HB 2054 will have significant implications on state tax laws by adjusting the assessment criteria under which property taxes are applied. By raising the assessment threshold, the bill is designed to help lower taxes for some property owners, potentially increasing disposable income for lower and middle-income households. The measure has been characterized as a move towards greater tax relief, supporting families and individuals facing financial hardship, especially in economically challenging times.

Summary

House Bill 2054 aims to amend certain sections of Tennessee's property tax laws, specifically concerning the thresholds for property assessments. The bill proposes to increase the cap on the property assessment value from $1,500 to $3,000, which would affect how property taxes are levied and calculated for residents. This change is intended to alleviate some of the financial burdens on homeowners while also simplifying the property tax structure within the state.

Sentiment

General sentiment surrounding HB 2054 appears to be mixed but leans towards a favorable view among proponents. Supporters, particularly from the Republican party, argue that the increased threshold is a necessary step towards providing financial relief to constituents and fostering a more supportive economic environment. However, there is also some criticism regarding potential revenue losses for local governments, which may depend on property tax income for various services and infrastructure improvements.

Contention

One of the main points of contention regarding HB 2054 is its long-term fiscal implications for local governments. Opponents argue that while the tax relief may provide immediate benefits to citizens, it could strain local budgets and diminish funding for essential public services. Critics worry about the potential for increased financial pressures on municipalities, which could lead to cuts in services or increased tax burdens on those who do not benefit from the exemptions. The debate highlights the ongoing tension between providing tax relief to residents and maintaining adequate funding for community resources.