SENATE BILL 843
By Walley
HOUSE BILL 842
By Crawford
HB0842
003003
- 1 -
AN ACT to amend Tennessee Code Annotated, Section
67-4-409, relative to taxes on transfers of realty.
WHEREAS, for many years, this State has imposed a tax of $0.37 per $100 of value for
the privilege of publicly recording documents evidencing all transfers of realty, whether by deed,
court deed, decree, partition deed, or other instrument evidencing transfer of any interest in real
estate; and
WHEREAS, although this tax is collected locally, it is currently remitted to the State, and
the revenue is not made available for use by local officials to address needs in the community
where the tax is collected; and
WHEREAS, county governments have few revenue options available to them for funding
the many crucial governmental services mandated by state law and are therefore largely
dependent upon property tax to fund these services; and
WHEREAS, county governments have been fiscally disciplined, allowing Tennessee to
remain a low property tax burden state; however, county budgets are increasingly strained by
factors such as inflation, challenges in recruiting and retaining qualified staff, and requirements
to meet state mandates like increasing teacher compensation; and
WHEREAS, many counties are experiencing rapid population growth as families are
choosing to move to Tennessee and settle in its communities, adding to the demand for county
services and infrastructure which are necessary to maintain the quality of life all Tennesseans
expect and deserve; and
WHEREAS, as the State continues to experience revenue collections in excess of
budgeted estimates, allocating one-half of the real estate transfer tax on a recurring basis to the
- 2 - 003003
county where collected would take pressure off local property taxes and allow for investment in
infrastructure and services without unduly burdening state finances and without increasing the
rate of this tax; now, therefore,
BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF TENNESSEE:
SECTION 1. Tennessee Code Annotated, Section 67-4-409(d), is amended by adding
the following as a new subdivision:
(4) Notwithstanding another law and except for commissions and fees retained
as otherwise provided in subdivisions (d)(2) and (3), and except for the credit of realty
transfer tax revenues to specific accounts or funds in accordance with subsections (g),
(i), (j), (l), and (m), the department shall remit back to each county, respectively, fifty
percent (50%) of the recordation taxes on the transfer of realty levied under subsection
(a) that are collected by county registers and remitted to the department, based on the
total amount of such taxes remitted to the department by county.
SECTION 2. This act takes effect July 1, 2025, and applies to transfers of real property
on or after such date, the public welfare requiring it.