Last week, someone I know called me. They asked if the property tax ban amendment on the ballot this November would mean a reduction in property taxes starting next year.

To put it simply, even if this amendment passes, your current property tax bill will not change. It's an issue that can be easily misunderstood just by its name, so let's break it down step by step.

This amendment is listed as the second constitutional question on the ballot for the election on November 3rd, known as Amendment 2. Its purpose is to enshrine in the constitution that the state legislature (General Assembly) cannot create a state-level property tax.

However, Tennessee does not currently collect a state property tax. The general revenue state property tax provision was abolished in 1931, and in 1949, the education tax rate was even lowered to zero.

So, the idea is to ensure that a tax that has not existed for over 70 years cannot be created in the future. The reason for the amendment is that, under the current constitution, the state legislature still has the authority to reintroduce it if they choose to.

So, who collects the property taxes we pay every year? They are local taxes imposed by counties, cities, and some special school districts.

The amendment only restricts the state legislature; it does not affect the property tax authority of local governments. The Davidson County Trustee's office has also indicated that this amendment will not have a direct impact on local property taxes.

According to the same notice, property taxes account for 57% of the Metro Nashville budget. Since schools, roads, police, and fire services are funded from this, it's not easy for local property taxes to be significantly reduced.

Let's calculate an example for the caller's home. Let's assume the home is appraised at $400,000.

Tennessee assesses residential properties at 25% of their appraised value for tax purposes. This means the assessed value would be $100,000.

We then multiply this by the Metro city services district (USD) tax rate of $2.814 per $100. The annual property tax would come out to $2,814.

This tax rate was set by the Metro Council after the 2025 reappraisal and has been maintained in the budget for the 2026-27 fiscal year. Whether the amendment passes or fails, none of the numbers in this calculation will change.

So, what are the actual variables that affect the tax bill? One is the county reappraisal, and the other is the Metro Council's decision on tax rates.

The next reappraisal in Davidson County is scheduled for 2028. There was an announcement that the median home price increased by 45% compared to 2021 during the last reappraisal in 2025.

At that time, the revenue-neutral tax rate was $2.222, but the council raised it by $0.592, resulting in the current rate of $2.814. This shows that the burden of property taxes is ultimately determined by local budget battles.

So, does this amendment mean nothing to homeowners? Not necessarily.

Supporters believe it prevents the possibility of a state property tax being layered on top of local property taxes in the future. Since the Tennessee constitution already prohibits a state income tax, the argument is to protect property taxes at the same level.

This could be a reassuring factor for those considering long-term ownership or moving from another state, as having the tax structure fixed in the constitution increases predictability.

On the other hand, there is a cautious perspective. It is pointed out that the state's reliance on sales tax and business tax could limit options during economic downturns.

If the state runs low on funds, that burden could fall on local governments, potentially leading to pressure for local property tax increases. While this may not happen immediately, it is a consideration for the long term.

The requirements for passing the amendment are also somewhat strict. There must be more votes in favor than against, and the number of yes votes must exceed half of the total votes cast in the governor's election on the same day.

So, if you leave the amendment question blank, it effectively has a similar effect to a no vote. Whether you are in favor or against, it's best to make your opinion known.

Early voting runs from October 14 to 29. The voter registration deadline has already passed on October 5, so just make sure to check your registration status.

If property taxes are a significant burden for you, there are things to consider before the amendment. Tennessee's property tax relief for seniors and disabled individuals, as well as the Metro property tax freeze program.

Since the income and age criteria are adjusted every year, it's best to check the current standards directly with the Metro Trustee's office. If you think the appraisal value is off, there is also a process to appeal during the reappraisal.

In summary, Amendment 2 is not a measure to reduce the taxes you currently pay, but rather a measure to prevent the possibility of a new tax being created. Understanding this difference is important when you go to vote.

If I were you, I would pay more attention to the 2028 reappraisal and the Metro budget review every June rather than expecting this one amendment to change my tax bill. From my long observation, my property taxes have always been determined by the local council.