Tennessee Senate Bill SB2218

Tennessee 2023-2024 Regular Session

• Introduced: 1/30/24

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 revised provisions of SB2218 place a clear accountability on the seller regarding rollback taxes, stressing that they are responsible for ensuring these taxes are addressed at closing unless otherwise contracted. This shift could lead to a more streamlined process for the sale of classified land. Moreover, the amendment aims to enhance the clarity of existing laws relating to the disqualification or withdrawal of land from its classification, which may influence the decisions of landowners when considering the sale of their property.

Summary

Senate Bill 2218 aims to amend certain provisions regarding the Agricultural, Forest and Open Space Land Act of 1976 within the Tennessee Code Annotated. The bill seeks to clarify the responsibilities associated with rollback taxes when agricultural or forest land is sold. Specifically, it mandates that rollback taxes must be paid in full at the time of closing on any parcel of land classified as agricultural, forest, or open space land. This strengthens the existing framework around compliance that both sellers and buyers must adhere to during the transaction process.

Contention

While the bill appears to modernize and clarify tax obligations related to land sales, discussions amongst stakeholders may raise concerns regarding its financial impacts. Industries and landowners operating within the agricultural domain might express apprehensions about increased costs associated with the compliance of rollback taxes, potentially affecting their financial planning and land valuation. Furthermore, the necessity of clarity in such legal frameworks may prompt debates over whether these changes favor larger corporate owners over small, independent farmers who are more susceptible to fluctuations in tax requirements.

Additional_notes

Overall, SB2218 represents a significant legislative effort to refine the taxation structure associated with property sales in the agricultural sector, with potential implications for land use and economic activity in Tennessee. As the bill progresses through the legislative process, discussions among interested parties will determine its final shape and the real-world ramifications of its enactment.