SENATE BILL 1173
By Akbari
HOUSE BILL 941
By Mitchell
HB0941
001982
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AN ACT to amend Tennessee Code Annotated, Title 67,
Chapter 5, Part 7, relative to elderly, low-income
homeowners.
BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF TENNESSEE:
SECTION 1. Tennessee Code Annotated, Section 67-5-702(a), is amended by deleting
subdivision (3) and substituting instead the following:
(A) Reimbursement must be paid on the assessed value of the property and in
accordance with subsection (b); provided, that reimbursement must not be paid if the
assessed value of the property exceeds four hundred thousand dollars ($400,000), or
such other amount as set forth in the general appropriations act or as adjusted pursuant
to subdivision (a)(3)(B), in the first year tax relief for the property is claimed by the
taxpayer. If the assessed value of the property of a taxpayer who received tax relief
pursuant to this section in the previous year exceeds the upper limit set or adjusted
pursuant to this subdivision (a)(3) in the subsequent year, then reimbursement must be
paid on the upper limit.
(B) Beginning for tax year 2027, and each subsequent tax year, the upper limit
on the assessed value under subdivision (a)(3)(A) must be increased annually to reflect
inflation, as measured by the United States bureau of labor statistics consumer price
index for all urban consumers, and rounded to the nearest one hundred dollars ($100).
The comptroller of the treasury shall notify taxpayers of any change in dollar amounts
made pursuant to this subdivision (a)(3)(B) and post the information in a readily
identifiable location on the comptroller's website. The annual percentage changes used
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in this calculation must be not less than zero percent (0%) and not more than three
percent (3%).
SECTION 2. Tennessee Code Annotated, Section 67-5-702(b), is amended by deleting
the subsection and substituting instead the following:
(1) In determining the amount of relief to a taxpayer:
(A) Reimbursement is based on the taxpayer's age and must be
calculated as a percentage of the property tax owed and paid on the assessed
value; and
(B) The assessed value must be multiplied by a tax rate that has been
adjusted to reflect the relationship between appraised value and market value in
that jurisdiction, as determined by the state board of equalization.
(2) The assessed value is determined by multiplying the full market value of the
property by twenty-five percent (25%).
(3) The full market value of the property is determined by adjusting the
appraised value of the property as shown on the records of the assessor of property by a
factor that reflects the relationship between appraised value and market value in that
jurisdiction, as determined by the state board of equalization.
(4) The amount of property tax relief available to a taxpayer is as follows:
(A) If the taxpayer is sixty-five (65) years of age, then the reimbursement
is ten percent (10%) of the property tax paid;
(B) Each additional year of age results in an additional ten percent (10%)
of property tax reimbursement; and
(C) If the taxpayer is seventy-four (74) years of age or older, then the
reimbursement is one hundred percent (100%) of the property tax paid.
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SECTION 3. This act takes effect July 1, 2025, the public welfare requiring it, and
applies to tax years beginning on or after that date.