House Bill 1716, sponsored by Fritts, amends various sections of the Tennessee Code Annotated related to property taxes. The bill introduces new criteria for the valuation of residential properties, stating that the appraised value will be the higher of the most recent sale price or the value assigned by a financial institution during refinancing. This new valuation method applies to transactions occurring after December 31, 2020, and the appraised value will remain in effect until the property is sold or reappraised by a financial institution. Additionally, the bill modifies the homestead exemption rules, ensuring that the exemption for a principal residence of a U.S. citizen is the full value of the homestead and cannot be used to satisfy debts related to the property.

Furthermore, the bill establishes protections for homeowners who have used their property as a principal residence for ten years or more, preventing the sale of the property to satisfy debts under certain conditions. Homeowners must provide proof of residency and U.S. citizenship to qualify for these protections, and interest on the debt will not accrue during the period of residency. The bill also includes a severability clause, ensuring that if any part of the act is deemed invalid, the remaining provisions will still be enforceable. The act will take effect upon becoming law.

Statutes affected:
Introduced: 67-5-601(c), 67-5-601, 26-2-301(c), 26-2-301, 67-5-2501