A vehicle swept into the yard of a Unicoi County house by floodwaters generated by Hurricane Helene in September. (Photo: Brandon Hull/Office of the Governor)
Lawmakers will consider providing $5 million in grants to East Tennesseans who sustained property damage from Hurricane Helene to ensure they can pay their county taxes – plus 30% more.
With a Feb. 28 deadline for property taxes, land owners will be able to use the money to pay taxes on damaged property for 2024, said Rep. Jeremy Faison, a Cosby Republican.
Faison and Republican Sen. Rusty Crowe of Johnson City are sponsoring the bill as a special session of the legislature convenes Jan. 27. It is expected to be one of several flood relief initiatives, since the governor proposed spending $450 million to provide relief to the region.
Under their plan, someone with a $1,000 local property tax bill would receive $1,300, Faison said, though he wasn’t certain how the extra money would affect their federal income taxes.
“They still have a tax bill due even if they don’t have a house anymore,” said Faison, chairman of the House Republican Caucus.
Faison said he worked with the governor, comptroller and attorney general to come up with a legal and constitutional plan to bolster people who had “total devastation” on their homes.
Eleven counties were declared disaster areas in late September 2024 after Hurricane Helene, and five of those suffered devastating losses and deaths as rain from the hurricane caused historic flooding.
Property assessors in affected counties worked with the Tennessee Comptroller’s Office to identify every house affected by the storm, enabling the state to determine who would be eligible for grants.
Comptroller Jason Mumpower said upper East Tennessee lawmakers contacted him immediately after the flood to find a way to bolster property owners who suffered losses.
“Unprecedented disasters call for unprecedented actions,” Mumpower said.
Those who’ve already paid their property taxes can use the money for other expenses, he said, adding “no strings” are attached to the grants.
Mumpower said the plan is designed to make property owners and county governments “whole” as they continue to recover. Otherwise, local governments might be forced to raise property taxes to cover operations while getting through the emergency situation.
Gov. Bill Lee pulled $100 million from the state’s TennCare program to provide loans to counties until they receive federal relief money.
Some lawmakers say the governor should have called a special session last fall to help damaged counties, and they contend that lumping flood relief with private-school vouchers and strict immigration measures during the coming special session puts pressure on East Tennessee lawmakers to support the governor’s education plan.
In addition to the property tax relief bill sponsored by Faison and Crowe, the special session is expected to increase grants to school districts in heavy tourism areas, deal with further expenses related to recovery and pay for construction of a public high school in Carter County where Hampton High School sustained serious damage.
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