HOUSE BILL 649
By Marsh
SENATE BILL 1080
By Johnson
SB1080
002532
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AN ACT to amend Tennessee Code Annotated, Section
67-4-409, relative to the recordation tax.
BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF TENNESSEE:
SECTION 1. Tennessee Code Annotated, Section 67-4-409, is amended by adding the
following new subsection:
(p)
(1) Notwithstanding another law to the contrary, 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 within
that county. The commissions authorized in subdivision (d)(2) and the
allocations to various funds and purposes directed in subsections (g), (i), (j), (l),
and (m) must be deducted from the fifty percent (50%) of the revenue that is
retained by the state, and the distribution to county governments must not reduce
the portion of the funds allocated for those purposes.
(2) The funds received by counties pursuant to this subsection (p) must
not be used for salaries and benefits, but may be used for:
(A) Infrastructure, including, but not limited to, road and bridges,
schools, and other public facilities;
(B) Debt service for capital projects;
(C) Matching funds for state and federal projects; and
(D) Other nonrecurring expenses.
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(3) In allocating the funds received under this subsection (p), a county
shall dedicate not less than fifty percent (50%) of the funds to transportation
infrastructure projects; provided, that a county must not use the funds from this
revenue source to supplant other state or local moneys appropriated or allocated
for building, maintaining, or improving county roads or bridges. When presenting
the annual work program pursuant to § 54-7-111, the chief administrative officer
of the county highway department shall also present recommendations to the
county commission for the use of these funds, prior to their appropriation.
(4) Due to the fluctuations in collections from the tax levied under this
section, funds received by the county under this subsection (p) must not be
considered a local revenue source when calculating the five-year average of
local funds pursuant to § 67-3-901(d).
SECTION 2. This act takes effect July 1, 2025, the public welfare requiring it, and
applies to transfers of real property on or after such date.