Tennessee House Bill HB1902

Tennessee 2023-2024 Regular Session

• Introduced: 1/22/24
• Refer: 1/25/24
• Refer: 2/20/24

Caption

AN ACT to amend Tennessee Code Annotated, Title 66; Section 67-4-409 and Title 67, Chapter 5, Part 10, relative to the Agricultural, Forest and Open Space Land Act of 1976.

Impact

The impact of HB1902 is substantial as it directly affects how rollback taxes are managed during the sale of specific types of land. By specifying that rollback taxes are the personal responsibility of the seller, the bill seeks to streamline the selling process for agricultural and forest lands while ensuring that taxes owed are settled at or before the sale closes. This change is expected to simplify the tax processes involved and promote clarity for all parties involved in land transactions, thus facilitating smoother sales for agricultural properties.

Summary

House Bill 1902 aims to amend the Agricultural, Forest and Open Space Land Act of 1976 in Tennessee. The bill introduces significant changes regarding rollback taxes associated with the sale of land designated as agricultural, forest, or open space. One of the key amendments mandates that rollback taxes must be paid in full at the closing of the sale transaction, with the seller being primarily responsible for these taxes unless otherwise stated in a written contract. This modification is designed to clarify the responsibilities concerning tax payment during land sales, particularly emphasizing the seller's obligations in these transactions.

Sentiment

The sentiment surrounding HB1902 appears to be generally supportive among stakeholders involved in agricultural land transactions. Many in the agricultural sector view the bill as a necessary refinement of current tax processes that could alleviate some of the complications and uncertainties historically associated with rollback taxes. However, there may be some concerns raised by smaller landowners about the financial implications of upfront tax payments, as well as potential accountability challenges in ensuring contracts reflect the tax responsibilities accurately.

Contention

A notable point of contention regarding HB1902 might arise from the potential challenges faced by individual land sellers who may find it difficult to cover rollback taxes at the time of sale. Additionally, stakeholders may debate the implications of shifting tax responsibility solely onto sellers, potentially complicating negotiations during land sales. The adjustments made in the bill regarding tax terms and responsibilities could lead to discussions on whether these provisions adequately protect the interests of both buyers and sellers in land transactions.