HB 95 - SB 126
FISCAL NOTE
Fiscal Review Committee
Tennessee General Assembly
March 4, 2025
Fiscal Analyst: Elizabeth Bransford | Email: elizabeth.bransford@capitol.tn.gov | Phone: 615-741-2564
HB 95 - SB 126
SUMMARY OF BILL: Allocates, after all other distributions, 50 percent of the revenue
generated from the realty transfer tax back to each respective county based on the total amount of
taxes remitted to the state by such county.
FISCAL IMPACT:
STATE GOVERNMENT
REVENUE General Fund
FY25-26 & Subsequent Years ($110,373,200)
LOCAL GOVERNMENT
REVENUE Mandatory
FY25-26 & Subsequent Years $110,373,200
Assumptions:
• Pursuant to Tenn. Code Ann. § 67-4-409(a), $0.37 per $100 tax is collected on all transfers
of realty, whether by deed, court deed, decree, partition deed, or other instrument
evidencing transfer of any interest in real estate.
• The proposed legislation requires the Department of Revenue (DOR) to return to each
respective county 50 percent of the amount of realty transfer tax it collected and remitted to
the state.
• Realty tax collections are allocated to the General Fund after several account distributions.
Based on information provided by DOR, distribution to the General Fund after all
apportionments in FY23-24 was $201,557,954.
• Fiscal Review Committee staff’s estimates for privilege tax growth is 3.84 percent for FY24-
25 and 5.47 percent for FY25-26.
• It is estimated that, under current law, the distributions of realty tax collections to the
General Fund will be $220,746,368 ($201,557,954 x 1.0384 x 1.0547) in FY25-26. For the
purposes of this analysis, it is assumed this number will remain constant into perpetuity.
• Therefore, the recurring decrease in state revenue to the General Fund and corresponding
increase in local revenue is estimated to be $110,373,184 ($220,746,368 x 50%) in FY25-26
and subsequent years.
HB 95 - SB 126 2
CERTIFICATION:
The information contained herein is true and correct to the best of my knowledge.
Bojan Savic, Executive Director