113 General Assembly back in session

Today, the Second Session of the 113 General Assembly was gaveled into session at noon. 

The Governor’s proposed expansion of the Education Freedom Scholarships and reform of the Franchise and Excise Tax are likely to be the central components of his budget proposal. The recent development regarding the state’s proposal to avoid a costly lawsuit over Tennessee’s Franchise and Excise Tax (F&E) collections, derailed further consideration of almost all non-education proposals in Lee’s proposed budget. 

The General Assembly also anticipates continuing discussion of legislation considered during the Special Session related to crime, public safety, school safety, and access to mental health services. It has also been suggested that the General Assembly will consider criminal justice reforms.  

On the local front, we expect legislation to be introduced that seeks to impose a cap of some form on the local property tax levy. We also know that the Comptroller intends to pursue legislation allowing counties to reduce current reappraisal cycles. In addition, we anticipate the introduction of legislation responding to pressures arising from the continued influx of people relocating to Tennessee. These measures could address growth plans, zoning authority, annexation, development fees and taxes, and housing.

All of these discussions will occur against the backdrop of the need to arrive at a balanced budget. Leaders of the General Assembly have repeatedly cautioned about the uncertainty of the economy and emerging trends suggesting that growth in state revenues is slowing.

While House and Senate Committees will meet this week, no committee is expected to consider any municipal legislation. We will resume publication of our online weekly TML Legislative Bulletin next week and our TML Daily Update and TML Week-In-Review in the coming weeks.