House Bill 426 amends Tennessee Code Annotated, Section 67-5-212, to introduce a new provision for institutional exemptions specifically for nonprofit religious institutions in counties with a metropolitan form of government and a population exceeding 500,000, as per the 2020 federal census or any subsequent census. The new subdivision (b)(3)(F) allows these institutions to claim an exemption for properties acquired for exempt purposes, with the effective date of the exemption being retroactive up to three years prior to the application date or the date the property was first used for exempt purposes, whichever is later. This provision applies to properties acquired before the act's effective date, ensuring they are not subject to taxation while used for the institution's exempt purposes. However, it clarifies that counties are not required to refund any taxes collected prior to the act's effective date.

The bill aims to provide financial relief to nonprofit religious institutions by allowing them to apply for tax exemptions on properties used for their exempt purposes, thereby supporting their operations and community services. The act is set to take effect immediately upon becoming law, emphasizing the urgency of the public welfare in facilitating these exemptions.

Statutes affected:
Introduced: 67-5-212(b)(3), 67-5-212