HB 2607 limits annual property tax increases for Tennessee counties, cities, and other local taxing entities. It prevents total property tax revenue from exceeding the previous year's total plus 2%, excluding new construction or properties added to tax rolls. To exceed this 2% limit, local governments must hold a referendum requiring 60% voter approval, specify the funding purpose, and limit increases to four years. The bill applies to all local tax jurisdictions and would take effect July 1, 2026, if passed.
HB 2409 amends Tennessee property tax law to change how mineral interests and similar property rights are assessed. It specifies that these interests (like mineral rights or leasehold improvements) are generally assessed to their owner, but adds two exceptions: 1) if a lessee has a "payments in lieu of taxes" agreement with state/local government (effective April 30, 2019 or later), or 2) if the lessee is part of a housing authority's affordable housing project under specific lease terms (entered after April 30, 2026). In these cases, the property is assessed solely to the governmental entity (like a housing authority), not the private owner. The bill directly affects mineral rights holders, property owners with lease agreements, and housing authorities managing affordable housing projects.
HB 1716 changes how Tennessee taxes residential property by setting the tax value at the higher of the most recent sale price or a financial institution's appraisal during refinancing (effective after December 2020). It also protects homeowners who have lived in their primary residence as a U.S. citizen for 10+ years by prohibiting tax sales to satisfy property tax debt, requiring proof of residency and citizenship. Once eligibility is confirmed, interest stops accruing on the debt, which becomes due only upon property transfer. This applies to homes used as primary residences, directly affecting long-term residential property owners. The bill amends Tennessee Code Sections 26-2-301 and 67-5-2501.
HB 1903 expands Tennessee's homestead property tax exemption to include adult children (18+ years old) with developmental or intellectual disabilities who live in the family home after the death of the head of household. The bill amends Tennessee law to extend the exemption to these adult children - previously only minor children or spouses were covered - provided they continue using the property as their primary residence. It references existing definitions of "developmental disability" and "intellectual disability" from Tennessee Code §52-1-101 to clarify eligibility. The changes apply to property tax protections under Titles 26, 30, 33, and 52 of Tennessee Code, effective July 1, 2026.
SB 1935 extends Tennessee's homestead exemption - a property tax protection - to adult children (18+ years old) with developmental or intellectual disabilities when a head of household dies. Currently, the exemption covers surviving spouses and minor children; this bill adds eligible adult children who live in the home as their primary residence. The law uses existing definitions of "developmental disability" and "intellectual disability" from state code, and ensures that if property can't be protected as homestead, $35,000 in proceeds must be allocated to the adult child or spouse. The bill takes effect July 1, 2026, and directly affects families with disabled adult children facing potential loss of their home after a parent's death.
SB 1798 increases property tax relief for disabled veteran homeowners in Tennessee by raising the reimbursement threshold from $175,000 to $200,000 of a home's full market value. This change directly affects eligible disabled veterans who qualify for property tax relief under Tennessee law. The bill amends Tennessee Code Annotated § 67-5-704(a) to adjust the covered value amount for reimbursement calculations. The updated reimbursement rate takes effect for tax years beginning July 1, 2026. The change expands the property value covered for tax relief without altering eligibility requirements.
SB 1916 redefines "movable structure" in Tennessee's property tax code to require mobile homes used as permanent residences to be classified as such for tax purposes, rather than as temporary structures. This change directly affects mobile home owners who use their units as primary residences, ensuring they are assessed under residential property tax rates. The bill amends Tennessee Code § 67-5-501(7) to specify that mobile homes must be "used permanently as a residence" to qualify for this classification, eliminating prior flexibility for temporary or mixed-use designations. The policy takes effect for tax years beginning January 1, 2026, impacting how these properties are assessed statewide.
SB 775 requires that 10% of excess proceeds from delinquent property tax sales in Tennessee be allocated to provide tax relief for specific homeowners. It directly affects elderly low-income residents, disabled individuals, disabled veterans, and widows of disabled veterans. The bill amends tax code provisions to mandate this funding shift, directing the 10% toward a new relief program under Chapter 5 of Title 67. This policy change takes effect July 1, 2025, creating a dedicated funding source for targeted property tax assistance.
SB 539 establishes new rules for taxing multi-unit rental properties (four or more units) that receive federal, state, or local incentives tied to low-income housing restrictions, such as tax credits or rent subsidies. Property owners must notify local assessors by December 31 each year if their property has such restrictions, and assessors must value these properties using specific methods - including adjusting for rent differences between restricted and non-restricted units and excluding tax credits from valuation. The bill requires a higher capitalization rate (50-150 basis points above the national average) for these properties to reflect their reduced market value, with rules taking effect for tax year 2026. This directly affects owners of qualifying rental housing and property assessors statewide.
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.
