Tennessee House Bill HB0247

Tennessee 2023-2024 Regular Session

• Introduced: 1/17/23
• Refer: 1/21/23

Caption

AN ACT to amend Tennessee Code Annotated, Title 67, Chapter 4, Part 7, relative to business tax.

Impact

The implications of HB0247 are notable, as this amendment would potentially affect a wide range of stakeholders in the real estate sector, including appraisers, property owners, and buyers. Including appraisal services in the business tax framework aligns with efforts to enhance state revenue but may also increase the cost of real estate transactions for consumers. The real estate industry may see a shift in how services are valued, making transparency and accountability in appraisals more critical. Furthermore, it could lead to discussions on the equity of taxation practices within the state, as additional costs may burden buyers and sellers alike.

Summary

House Bill 0247 aims to amend the Tennessee Code Annotated, specifically within Title 67, Chapter 4, Part 7, which deals with business taxes. The amendment introduces a new provision that includes services rendered by individuals engaged in the appraisal of real estate or real property as taxable. This is a significant move as it expands the scope of taxable services under the current business tax framework in Tennessee. By including real estate appraisal services, the bill seeks to generate additional revenue for the state, which can be utilized for various public welfare initiatives.

Contention

Discussion surrounding HB0247 may include points of contention related to the fairness and effectiveness of imposing taxes on appraisal services. Critics of the bill may argue that by taxing these services, the state could inadvertently drive up housing costs, making it harder for residents to access affordable housing options. Additionally, professionals within the real estate industry may lobby against such amendments, suggesting that it could hinder economic growth in a sector that is crucial for the state's development. Supporters, however, may advocate for the need for additional funding for state programs as a reason to pass the amendment, citing the importance of funding public welfare services.