House Bill 649 amends Tennessee Code Annotated, Section 67-4-409, by adding a new subsection (p) that mandates the state to remit fifty percent (50%) of the recordation taxes collected on realty transfers back to the respective counties. This distribution is subject to certain deductions for commissions and allocations to various funds, ensuring that the funds allocated for those purposes are not reduced. The bill specifies that the funds received by counties cannot be 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 requires that at least fifty percent (50%) of the funds allocated to counties must be dedicated to transportation infrastructure projects, with a stipulation that these funds cannot replace existing state or local funding for road and bridge maintenance. The chief administrative officer of the county highway department is tasked with presenting recommendations for the use of these funds to the county commission. 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