Tennessee House Bill HB2467

Tennessee 2023-2024 Regular Session

• Introduced: 1/30/24
• Refer: 2/1/24
• Refer: 3/27/24
• Refer: 4/2/24

Caption

AN ACT to amend Tennessee Code Annotated, Title 67, Chapter 5, relative to property tax.

Impact

The implications of HB2467 may be extensive, as it alters how property taxes are assessed for particular real estate. By allowing properties to retain their past zoning classifications for tax purposes, the bill could potentially limit tax increases for property owners who have improved their properties or were affected by zoning changes. This reclassification process could result in substantial fiscal changes for both the counties implementing these programs and for the property owners involved.

Summary

House Bill 2467 seeks to amend the Tennessee Code Annotated, particularly Title 67, Chapter 5, focusing on property tax regulations. The bill introduces provisions that allow counties to create a program enabling owners of real property to apply for classification as zoning-exempt property. This provision is significant as it offers property owners the possibility to have their properties assessed based on their original zoning classifications rather than any subsequent changes that might have increased the property value.

Conclusion

Overall, HB2467 represents a significant shift in property tax law in Tennessee by providing a framework for counties to manage property classifications and assessments differently. As it stands, the bill raises questions about potential inequality in tax treatment among property owners, the implications for local revenue streams, and the administrative burden on county assessors.

Contention

However, this bill could also lead to notable contention among stakeholders. Critics may argue that the classification of zoning-exempt properties could create inequities in property tax burdens across different areas, especially in counties that choose not to enact such programs. Furthermore, the rollback tax provision, which states that property owners may face up to three years of taxes based on reclassification changes, could spark debate regarding fairness and the financial impact on property owners.