TCSA Capitol Update: March 20, 2026

TCSA Capitol Update – Week of March 16, 2026

This week’s Capitol Update highlights a pivotal moment for Tennessee counties, as major legislative proposals advance that could significantly impact local governance, budgeting authority, and land-use regulation.

At the forefront is renewed momentum behind property tax cap legislation (HB 1873 / SB 2064), now scheduled for key committee votes next week. With leadership support signaling increased likelihood of passage, county officials are urged to engage legislators immediately and communicate the potential consequences of limiting local revenue authority without corresponding relief from state mandates. Meanwhile, a separate proposal to impose flat property tax limits was deferred, effectively ending that effort for the year.

Land-use policy also took center stage, with legislation (HB 1837 / SB 1908) that could expose counties to costly financial claims tied to zoning and development decisions. The proposal would allow property owners to seek compensation for perceived reductions in property value—raising significant concerns about the future of zoning, growth management, and local decision-making authority.

Additional development-related legislation continues to move forward, including a bill imposing strict timelines on local governments to approve or deny development applications, with automatic approval penalties for missed deadlines. At the same time, a measure granting counties more authority over the siting of quarries and digital asset mining facilities remains in play.

Despite these challenges, several positive developments emerged. Lawmakers advanced a new grant program for rescue squad equipment, moved forward legislation shifting autopsy costs from counties to the state—potentially saving counties over $1 million annually—and approved measures related to jail intake procedures and emergency communications funding.

With multiple high-impact bills scheduled for action in the coming days, this episode underscores the urgency for county officials to stay informed, engaged, and proactive in shaping outcomes at the Capitol.

For a full breakdown of legislation and ongoing updates, visit tncounties.org.

©️ 2026 Tennessee County Services Association

For more information, visit www.tncounties.org

Transcript

Copy Transcript Copied

SPEAKER_00 0:06

Welcome to the TCSA Capital Update for the week of March 16, 2026. Next week will be critical for county governments as the associations are battling threats on multiple fronts. While the proposed cap on property taxes, which is House Bill 1873 and Senate Bill 2064, was not scheduled to be heard this week, it is scheduled for a vote in both the House and Senate state and local government committees next week. The Speaker of the House signed on as a co-sponsor, signaling his support for the measure. Now is a critical time for county officials to contact their representatives and senators and let them know how devastating it would be to county budgets if their ability to raise revenues is limited without any relief from state mandates, maintenance of effort provisions, and other restrictions on the county's ability to manage its own budget. Call your senators and representatives whether or not they serve on these two committees. They can voice their concerns to their caucus members and encourage their fellow legislators not to approve this legislation. Senate Bill 2383 and House Bill 2385, a separate bill to set a flat limit of $3 on the property tax rate for counties and a $2.50 limit for cities, was deferred until next year by the Cities and Counties Subcommittee, effectively killing the proposal for the year. A proposal that would undermine all land use regulations by county and city governments was debated this week in the House Judiciary Committee, with testimony in favor and opposed to the bill. House Bill 1837 and Senate Bill 1908 is being pushed by lobbyists for the development community. It would allow landowners to make claims for financial damages from local governments when they feel that a land use regulation or the application of a land use regulation has the effect of reducing the fair market value of their property. For a county with zoning, this means if the county denies a property owner who asks for a variance or requests a permit for use that is not currently permitted under their zoning, they could then ask to be compensated for economic damages for not being allowed to develop their property the way they want. If the county concedes and grants the variants, neighboring properties could then demand compensation from the county if they can show that granting the variance lowered their property values. For the half of counties that do not currently have zoning, it would be cost prohibitive to ever adopt zoning in the future because they would face claims for damages from every landowner who believed the zoning reduced the potential market value of their property. Similarly, if a county votes to change subdivision lot size requirements, this could result in claims for damages. While landowners can currently go to court if they feel local regulations result in a taking of their property, this legislation allows them to bypass the court and file a claim directly with the county without proving economic damages. If the county doesn't pay the claim, it can then be sued in circuit court, with the property owner entitled to attorney's fees, costs, and expenses, in addition to the economic damages for the reduction in value of the property, so it removes all risk for the property owner to sue. The bill is expected to be voted on Monday in both the House and Senate Judiciary Committees. For the full list of the proposed legislation that could hinder county government's progress, or simply don't look favorably toward counties, please visit the full capital update text at www.tncounties.org. A number of proposals related to cities and counties' ability to enact and enforce land use regulations and manage growth are making their way through the legislature recently. Some would expand the authority of counties. Others would limit it. Senate Bill 2237 and House Bill 25 F2, an administration bill that sets time limits for approving development applications, plans, and site inspections, raises serious concerns for counties, especially those trying to manage growth. The bill, as amended, requires local governments to approve a proposal within 60 days, provide a written report of any deficiencies within 30 days, or request any additional information needed to ensure compliance with applicable regulations within 30 days. If the city or county misses any of these deadlines, the application is automatically approved. Local governments are limited to issuing two reports of deficiencies. If the developer doesn't satisfy the deficiencies after the second report, the county can deny the application and refund 50% of the fees paid by the developer or place the matter on the next agenda of the governing body or planning commission for conditional approval. The bill was approved by the Senate State and Local Committee and is scheduled to be heard in the House Committee next week. A separate bill, Senate Bill 2053 and House Bill 1827, which grants local governments the ability to approve the location of any quarry or digital asset mining facilities in a public meeting is moving forward. The bill was scheduled for a floor debate in the Senate, but was deferred for a week. It was approved by the Cities and Counties Subcommittee and heads to the full House State and Local Committee. While it seems like there are serious threats everywhere you look, there are also positive developments. Senate Bill 1865 and House Bill 2531, which create a new grant program for equipment for rescue squads, have passed both the House and Senate and are headed to the Governor's desk. House Bill 1813 and Senate Bill 1480, which require the state to pay for autopsies ordered by the district attorney instead of counties, were recommended by the Senate State and Local Government Committee. The bill is projected to save counties over $1 million each year. It is headed to the finance committees to see if the proposal can be funded. House Bill 1815 and Senate Bill 1724, which allows a sheriff to refuse to accept an arrestee in need of medical attention until the arresting agency obtains the necessary care for the individual, passed the House, and were approved by the Senate Judiciary Committee. Senate Joint Resolution 48 to ratify an increase in the 911 fee was approved by the Departments and Agencies Subcommittee in the House and sent to the full committee. House Bill 2114 and Senate Bill 2450 was amended to call for a TASIR study on allowing required public notices to be placed on websites instead of publishing them in newspapers. That's all for this week's TCSA Capital Update Audio, but check out the written version in print for later reference if you'd like. All this and so much more information is available on the TCSA website at www.tncounties.org.