Tennessee 2025-2026 Regular Session

Tennessee House Bill HB0402 Compare Versions

Version 1 (Old)

Version 2 (New)

Old	New		Differences
1	1
2		-	SENATE BILL 1101
3		-	By Campbell
	2	+	<BillNo> <Sponsor>
4	3
5	4		HOUSE BILL 402
6	5		By Moon
7	6
8	7
9	8		HB0402
10	9		000773
11	10		- 1 -
12	11
13	12		AN ACT to amend Tennessee Code Annotated, Title 5;
14	13		Title 6 and Title 67, Chapter 5, relative to
15	14		canopies.
16	15
17	16		BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF TENNESSEE:
18	17		SECTION 1. Tennessee Code Annotated, Title 67, Chapter 5, Part 2, is amended by
19	18		adding the following as a new section:
20	19		(a)
21	20		(1) As used in this section:
22	21		(A) "Board" means the state board of equalization;
23	22		(B) "Implementing agency" means the county planning
24	23		commission, assessor of property, or county board of equalization,
25	24		operating individually or in conjunction with each other under this section;
26	25		(C) "Tree canopy":
27	26		(i) As determined by an urban tree canopy study, means
28	27		the branches, leaves, stems, and other foliage from woody
29	28		vegetation, which cover real property when viewed from above the
30	29		canopy, measured as a percentage of shaded land area within the
31	30		tree dripline;
32	31		(ii) As determined by aerial imagery, means a contiguous
33	32		area of at least five thousand square feet (5,000 sq. ft.) that
34	33		includes the layer of leaves, branches, and stems of trees that
35	34		cover the ground when viewed from above; and
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39	38
40	39		(iii) As determined by field survey, means a contiguous
41	40		area of at least five thousand square feet (5,000 sq. ft.) that
42	41		includes the critical root zone of one (1) foot per inch of diameter
43	42		at breast height of a group of trees that are at least six inches (6")
44	43		at breast height; and
45	44		(D) "Tree dripline" means the outermost circumference of a tree
46	45		canopy from which water drips onto the ground.
47	46		(b)
48	47		(1) A property owner may apply for a property tax exemption for those
49	48		portions of real property that provide tree canopy, as determined by the
50	49		implementing agency.
51	50		(2) The implementing agency shall determine the portion of real property
52	51		that provides tree canopy using reliable, objective means of quantitative
53	52		assessment, including an urban tree canopy study, high-resolution aerial
54	53		imagery, or field-based visual assessment.
55	54		(3)
56	55		(A) The property tax exemption authorized under this section only
57	56		applies to the portion of real property that provides tree canopy.
58	57		(B) If only a portion of real property is located under tree canopy,
59	58		then such real property is exempt from taxation only to the extent of the
60	59		value of that portion, and the remaining portion of such property is subject
61	60		to taxation.
62	61		(c)
63	62		(1) The chief administrative officer of the county, subject to approval by
64	63		majority vote of the county governing body, shall select the implementing agency
65	64
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68	67
69	68		responsible for determining tree canopy coverage. The implementing agency
70	69		selected and approved under this subdivision (c)(1) must be reviewed annually to
71	70		determine whether a new implementing agency should be selected and
72	71		approved.
73	72		(2) The implementing agency shall determine the portion of tree canopy
74	73		sheltering real properties upon the submission of an application for a tree canopy
75	74		property tax exemption as prescribed under this section.
76	75		(3) The implementing agency shall formulate application formats and
77	76		application requirements for the property tax exemption. The implementing
78	77		agency may develop additional criteria for the property tax exemption, subject to
79	78		the review and approval of the state board of equalization and subsequent
80	79		approval by the county governing body by resolution.
81	80		(4) The implementing agency shall set the value of the exemption
82	81		granted under this section.
83	82		(5) The county government may determine whether to apply the property
84	83		tax exemption authorized under this section to either residential properties,
85	84		commercial properties, or both types of properties.
86	85		(d)
87	86		(1)
88	87		(A) An owner of real property claiming a tree canopy property tax
89	88		exemption under this section must file an application for the exemption
90	89		with the state board of equalization on a form prescribed by the board and
91	90		provide all information required by the board to determine whether the
92	91		property qualifies for the exemption. An application is deemed filed on
93	92		the date it is received by the board or, if mailed, on the postmark date.
94	93
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98	97		(B) The owner must provide a copy of the application with any
99	98		supporting materials to the assessor of property of the county in which the
100	99		property is located.
101	100		(2)
102	101		(A) The board shall make an initial determination granting or
103	102		denying an exemption through its staff designee, who shall send written
104	103		notice of the initial determination to the applicant and to the assessor of
105	104		property. Written notice includes notification by electronic means and
106	105		such notice may be preserved in digital or electronic format.
107	106		(B)
108	107		(i) An application for an exemption under this section or
109	108		another section referring to these procedures is considered an
110	109		appeal for purposes of § 67-5-1512.
111	110		(ii) Either the applicant or the assessor of property may
112	111		appeal the initial determination to the board and is entitled to a
113	112		hearing prior to any final determination of exemption under this
114	113		section.
115	114		(3) A property that is subject to the application requirements is not
116	115		exempt from being taxed unless the application has been approved in writing by
117	116		the board.
118	117		(4) The exemption is not transferable or assignable upon its approval,
119	118		and the applicant must promptly report to the assessor any change in the use or
120	119		ownership of the property or removal of tree canopy that could affect the
121	120		property's tax exempt status.
122	121
123	122
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125	124
126	125		(5) The board may, by rule, impose a filing fee for processing
127	126		applications for the exemption. The implementing agency may also, by rule,
128	127		impose a filing fee for processing applications for the exemptions. In each
129	128		instance, the filing fee must not exceed one hundred twenty dollars ($120) and
130	129		must be proportionate to the value of the property at issue.
131	130		(e)
132	131		(1) All real property granted an exemption from taxation under this
133	132		section must be certified in accordance with the criteria adopted pursuant to this
134	133		section. The tax exemption certified in accordance with this section continues in
135	134		effect throughout the property value assessment period applied by the county
136	135		assessor of property, but the exemption shall not continue in effect for more than
137	136		seven (7) years from the date the exemption was first granted unless the
138	137		implementing agency determines that it is reasonable to continue the exemption
139	138		an additional seven (7) years, whereupon the implementing agency shall recertify
140	139		the real property granted the exemption previously pursuant to this section.
141	140		(2) At the end of the approved exemption period, the assessor of
142	141		property shall reassess the value of the real property, which is then taxed on the
143	142		basis of its full market value.
144	143		(3) If, during the period the tax exemption is in effect, the real property is
145	144		determined by the implementing agency to have tree canopy coverage in an
146	145		amount less than previously determined, the exemption is void and of no effect,
147	146		and the owner is liable for any difference between the tax paid and the tax that
148	147		would have been due on such property.
149	148		(4) The tax exemption and restrictions under this section apply only to
150	149		the real property.
151	150
152	151
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154	153
155	154		(f) This section only applies when the county governing body elects, by a two-
156	155		thirds (2/3) majority vote, to come under its provisions.
157	156		SECTION 2. This act takes effect upon becoming a law, the public welfare requiring it.