HB 766 - SB 774
FISCAL NOTE
Fiscal Review Committee
Tennessee General Assembly
March 8, 2025
Fiscal Analyst: Justin Billingsley | Email: justin.billingsley@capitol.tn.gov | Phone: 615-741-2564
HB 766 - SB 774
SUMMARY OF BILL: Upon filing of suits to enforce a tax lien, establishes a penalty of five
percent on the base amount of delinquent real or personal property tax liabilities owed by a
defendant to the state, county, or municipality, not including any accrued interest or penalties, from
which proceeds are required to be devoted to providing tax relief for homeowners who are elderly
low-income, disabled, or a disabled veteran or widow of a disabled veteran.
FISCAL IMPACT:
NOT SIGNIFICANT
Assumptions:
• This tax will be paid by someone who repays delinquent taxes or makes a purchase at a tax
sale.
• The amount of delinquent real or personal property taxes owed to the state, counties, and
municipalities of this state, to which this penalty will apply, is unknown.
• Therefore, the amount of any revenue collected as a result of the five percent penalty
imposed on such amount cannot be determined.
• According to information provided by the Comptroller of the Treasury, this legislation
could result in costs to local governments to update tax software to account for this new
penalty; however, any such costs are considered not significant.
• Any increase in revenue to local governments will be offset by an equal increase in
expenditures to provide property tax relief to qualifying homeowners. Any cost for local
governments to allocate such revenue to eligible tax relief recipients is estimated to be not
significant.
• This legislation will have no significant impact on state or local government.
CERTIFICATION:
The information contained herein is true and correct to the best of my knowledge.
Bojan Savic, Executive Director