NASHVILLE, Tenn. (WTVF) — A decades-old Tennessee program that helps low-income taxpayers and veterans pay their property taxes is running out of money, potentially leaving more than 100,000 families without promised relief.
Since Tennessee voters passed a constitutional amendment in 1972, the state has set aside funds to reimburse eligible taxpayers for all or part of their local property taxes. The program assists seniors, disabled residents, veterans, and their families with tax relief.
The funding shortfall made headlines last year when the state comptroller brought to light that the fund was millions of dollars short of meeting demand. Rising local property taxes, which fund first responders, schools, and other services, have been forcing the comptroller to tap into reserves in recent years.
I met with Nashville State Senator Jeff Yarbro to discuss. We spoke last year after lawmakers were briefed on the desperate situation.
"When the state makes a promise to the people, it should be able to keep its promise," Sen. Yarbro said.
Roughly $41.2 million has been set aside yearly to help eligible families. For 2026, the state will take $10 million from the general fund to supplement the program. No funds will be left in reserve after next year.
"At this time, when housing prices are skyrocketing on people, this program is pretty essential," Yarbro said.
Without action from the General Assembly, families could receive smaller payments in the future or potentially nothing at all.
"At this point there are more than 100,000 families across the state who rely on this to stay in their community and that's a promise we made and a promise we should keep," Yarbro said.
A spokesperson for the comptroller's office said they hope the governor will include additional funding for the program in his budget request. Lawmakers will make decisions in the coming weeks that could determine the program's future.
Meanwhile, there is a bill that would change how property tax relief is calculated for disabled veterans. In Tennessee, if a property's value goes up, the reimbursement goes down.
If changes to this fund could impact you, I want to hear your story. Email me at Hannah.McDonald@NewsChannel5.com.
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