HB 180 – SB 1386
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 180 – SB 1386
SUMMARY OF BILL : Expands the criteria for real property that is eligible for deannexation
by petition.
FISCAL IMPACT:
NOT SIGNIFICANT
Assumptions:
• Tennessee Code Annotated § 6-51-104 establishes that property being used primarily for
agricultural purposes shall be annexed only with the written consent of the property owner
or owners.
• Pursuant to Tenn. Code Ann. § 6-51-201(c), owners of real property used primarily for
agricultural purposes who reside in a territory previously annexed by ordinance that was not
annexed through a referendum or a request of the property owner may petition the
municipality to deannex such property, if:
o The deannexation of the property does not create an area of unincorporated
territory that is completely surrounded by municipal boundaries; and
o The owner of some or all of the property at the time the petition is made is:
▪ The same owner or owners as when the property was annexed; or
▪ A direct descendant of the person who owned the property at the time of
annexation.
• This legislation will expand the criteria upon which owners of agricultural land, previously
annexed by municipal ordinance, may deannex property so that:
o The deannexation may create an area of unincorporated territory completely
surrounded by municipal boundaries if such real property is under a permanent
conservation easement; and
o A qualifying property owner includes a business in which the majority ownership is
held by individuals who are either the same owner or owners as when the property
was annexed or are a direct descendant of the person who owned the property at
the time of annexation.
• For any property that is deannexed as a result of the legislation, there will be a decrease in
revenue to the municipality and a corresponding increase in revenue to the county, the
timing and extent of which is unknown.
• However, the proposed legislation is not expected to result in a significant change in the
number of properties used primarily for agricultural purposes deannexed by petition across
the state.
HB 180 – SB 1386 2
• Any impact to state or local government is estimated to be not significant.
CERTIFICATION:
The information contained herein is true and correct to the best of my knowledge.
Bojan Savic, Executive Director