Farm Bureau Announces 2023 Priority Issues
On January 10, the 113th General Assembly gaveled in for the first portion of the new session. Lots of new faces, new leadership and over 1,500 bills await the next few months of activity in Nashville. This year, Farm Bureau will focus on these priority issues:
Constitutional Amendment Prohibiting Statewide Property Tax:
HJR81 Darby | SJR158 Niceley
A joint resolution by the House and Senate has been filed to begin the multi-year process to constitutionally prohibit the State of Tennessee from levying a statewide property tax. Currently, property taxes are imposed on the local level at rates fixed by county and municipal governments.
Tennessee previously collected a statewide property tax until it was repealed in 1949. While there is no current discussion about implementing a statewide property tax, this should not be an option for revenue for Tennessee. Only seven states collect property tax on the state level, and it is our hope Tennessee never makes it way to such list.
As a reminder, Constitutional Amendments must pass two general assemblies, the first with a simple majority, the second general assembly (beginning in 2025) would need a passage of the exact same language with a two-thirds majority. From there, the amendment would be proposed on the 2026 Gubernatorial election ballot where it’s final feat would be to receive a majority vote of all those voting for Governor.
Clarifying Greenbelt Provisions for Conservation Programs:
HB898 Hurt | SB711 Stevens
Last year, there were conversations around whether a property could remain in Greenbelt if it was enrolled in a voluntary conservation program administered by USDA. The issue which came to light is some properties enrolled in conservation programs such as the Wetland Reserve Program only receive a one time payment, instead of annual income as with some conservation programs. Currently, in order to qualify for Greenbelt, there is an annual income requirement. We are working with the sponsors and stakeholders to amendment this language to allow farmers who choose to enter into voluntary conservation programs to not be subject to rollback taxes if their property is in Greenbelt.
Local Governments Ability to Manage Growth:
Farm Bureau supports local government’s ability to adequately manage growth and keep property tax rates stable. There are currently several different pieces of legislation being considered which deal with this topic. With a variety of different vehicles out there, Farm Bureau is working through the language and will provide updates as amendments are filed and legislation begins to move through committee. So far this session, we have met with a variety of lawmakers and stakeholders to discuss the need for proper funding and growth management, but the conversations are sure to continue as language is drafted.
Budget Items:
Farm Bureau supports the Tennessee Department of Agriculture’s Business Development programs and would like to see funding maintained, or increased for both the Tennessee Ag Enhancement Program and Agriculture Enterprise Funds
Tennessee Ag Enhancement Program (TAEP) provides cost share dollars to farmers for the purpose of making long term investments in Tennessee farms and communities. Each dollar invested in a TAEP project generates $6.55 in local economies.
The Agriculture Enterprise Fund (AEF) awards grants to starting or expanding agricultural, food, or forestry businesses which spur job creation and economic development in Tennessee. The investment for each AEF dollar into local economies is $17.55.
State of the State Recap
Governor Lee presented his first State of the State in his second term on February 6 in Nashville, Tennessee. Here are some highlights of his proposed budget:
- $3 billion to the Transportation Modernization Fund to alleviate urban congestion and fund rural road projects across the state. Local road projects could see $300 million to expand the State Aid program.
- A total of over $900 million towards building and continuing a skilled workforce, starting with updating the seven most outdated TCAT facilities, investing in new buildings, expanding and improving the sixteen current campuses as well as building six new TCAT centers to better serve more students across Tennessee.
The agriculture community is expected to also benefit from Governor Lee’s proposal:
- $17.5 million, $1.5 million recurring and $15 million non-recurring, will be considered for the Tennessee Department of Agriculture’s Ag Enterprise Fund to continue to provide grants for agricultural, food, and forestry businesses in our rural communities.
- $1,795,500 proposed towards emergency preparedness and response, including 16 full time positions in the State Vet’s office. Amid highly pathogenic avian influenza (HPAI) these positions are crucial to working quickly and mitigating disease.
- $187,500 towards FFA Camp Clements for repair, maintenance, and operational expenses.
Thank you to our stakeholders who helped advocate for these proposals. We appreciate the Governor for understanding the needs of our industry and seeking it continues to thrive. It’s important to note these are merely proposed budget items, and final decisions will not be made until the legislature passes the budget later this session. Farm Bureau will continue to monitor the budget as it progresses through committee and is considered by the legislature.
