House Bill 649 amends Tennessee Code Annotated, Section 67-4-409, to introduce a new subsection (p) regarding the distribution of recordation taxes on realty transfers. Under this new provision, counties will receive fifty percent (50%) of the recordation taxes collected within their jurisdiction. However, the bill stipulates that certain commissions and allocations to various funds must be deducted from the state's retained revenue before the distribution to counties. The funds received by counties are restricted from being used for salaries and benefits, but can be allocated for infrastructure projects, debt service for capital projects, matching funds for state and federal projects, and other nonrecurring expenses.

Additionally, the bill mandates that counties must dedicate at least fifty percent (50%) of the funds received to transportation infrastructure projects and prohibits the use of these funds to replace other state or local funding for road and bridge maintenance. The chief administrative officer of the county highway department is required to present recommendations for the use of these funds to the county commission before appropriation. The act is set to take effect on July 1, 2025, and will apply to transfers of real property occurring on or after that date.

Statutes affected:
Introduced: 67-4-409