On all transfers of realty, whether by deed, court deed, decree, partition deed, or other instrument evidencing transfer of any interest in real estate, present law requires there to be a tax paid for the privilege of having the transfer recorded, for state purposes only, of 37¢ per $100. This bill requires the department of revenue ("department") to remit back to each county, respectively, 50% of the recordation taxes on the transfer of realty that are collected within that county, after certain withholdings and allocations. WITHHOLDINGS AND ALLOCATIONS For collecting and reporting recordation taxes levied, present law authorizes county registers to retain as commission 5% of the taxes so collected. However, 52% of the 5% commission must be remitted to the state treasurer and credited to the general fund of the state. The county registers are also entitled to receive $1 as a fee for issuing each receipt for taxes imposed, to be paid when the tax receipt is issued. The fee, however, is not applicable or collectible by any state officials charged with the collection of taxes. Present law requires certain portions of the recordation tax levied be credited to special agency accounts, including 3.25¢ to the wetland acquisition fund, 1.75¢ to the local parks land acquisition fund, 1.5¢ to the state lands acquisition fund, and 1.5¢ to the agricultural resources conservation fund. However, beginning fiscal year 2015-2016, 50% of the total growth in collections of recordation tax over the previous fiscal year and deposited to the above special funds must be transferred and credited elsewhere: 64% must be transferred and credited to the Tennessee Civil War or War Between the States site preservation fund and 36% must be transferred and credited to the historic property land acquisition fund. This bill requires the above withholdings and special allocations to occur and then the department to remit back to each county 50% of the remainder of the recordation taxes collected by the county. APPLICATION This bill applies to transfers of real property on or after July 1, 2025. ON APRIL 21, 2025, THE SENATE ADOPTED AMENDMENTS #1, #2, AND #3 AND PASSED SENATE BILL 843, AS AMENDED. AMENDMENT #1 rewrites the substantive provisions of this bill to expand the purposes for which monies in the wetland acquisition fund may be used. Under present law, the fund may be used for wetland and bottomland hardwood forest acquisition, to maintain and enhance state-owned property that is under the TWRA's jurisdiction, and (under certain circumstances) transfer to the Tennessee heritage conservation trust fund. This amendment adds authorization to use monies in the wetland acquisition fund for law enforcement personnel salaries, benefits, and other expenses necessary to carry out their duties under the boating and wildlife laws. AMENDMENT #2 removes the preamble. AMENDMENT #3 makes the following revisions:  Conditions the provision authorizing the fund to be expended to maintain and enhance state-owned property that is under the Tennessee wildlife resources agency's jurisdiction if the fund balance exceeds six million dollars during a monthly financial period.  Conditions the provision authorizing the fund to be expended for law enforcement personnel salaries, benefits, and other expenses necessary to carry out their duties if the fund balance exceeds six million dollars during a monthly financial period.

Statutes affected:
Introduced: 67-4-409(d), 67-4-409
Amended with SA0113, SA0375, SA0426 -- 04/21/2025: 67-4-409(d), 67-4-409, 67-4-409(g)