Senate Bill 843 amends Tennessee Code Annotated, Section 67-4-409, to address the distribution of taxes on transfers of real estate. Currently, a tax of $0.37 per $100 of value is imposed for the public recording of documents related to realty transfers, with the revenue collected locally but remitted to the state. The bill introduces a provision that mandates the state to return fifty percent (50%) of the recordation taxes collected by county registers back to the respective counties. This change aims to alleviate pressure on local property taxes and provide counties with additional funding for essential services and infrastructure, particularly in light of increasing demands due to population growth and fiscal challenges.

The new legal language added to the bill specifies that, with certain exceptions, counties will receive half of the real estate transfer tax revenues collected, which is intended to support local government needs without raising the tax rate. 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. This legislative change reflects an effort to enhance local funding mechanisms and improve the financial stability of county governments in Tennessee.

Statutes affected:
Introduced: 67-4-409(d), 67-4-409