House Bill 842 amends Tennessee Code Annotated, Section 67-4-409, to address the distribution of taxes collected on the transfer 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 being remitted to the state. The bill proposes that, starting July 1, 2025, counties will receive back fifty percent (50%) of the recordation taxes collected on realty transfers. 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 inserted into the bill specifies that the department shall remit back to each county fifty percent of the recordation taxes collected, with certain exceptions for commissions, fees, and specific accounts or funds. This amendment is intended to enhance local revenue options for county governments, allowing them to better address community needs without raising the tax rate. The bill reflects a recognition of the financial strains faced by counties and aims to support their ability to maintain quality services for residents.

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