Taxes, Ad Valorem - As introduced, adds a 5 percent penalty on delinquent property taxes with the penalty to be used to provide tax relief for the homeowners who are elderly low-income, disabled, or a disabled veteran or widow of a disabled veteran. - Amends TCA Title 67, Chapter 5.

SB 774 adds a 5% penalty on past-due property taxes in Tennessee, with the penalty revenue specifically dedicated to property tax relief for elderly low-income homeowners, disabled individuals, disabled veterans, or the widows of disabled veterans. The penalty applies only to the base tax amount (not interest or other fees) and must be used to reduce taxes for the qualifying groups. This change takes effect July 1, 2025, and amends Tennessee Code Annotated Title 67, Chapter 5. The bill redirects existing penalty funds to targeted relief rather than creating new taxes or benefits.