House Bill 1716 amends various sections of the Tennessee Code Annotated related to property taxes. It introduces new provisions regarding the valuation of residential properties, stating that the appraised value for tax purposes will be the higher of the most recent sale price or the value assigned by a financial institution for refinancing or collateral purposes. 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, clarifying that the exemption does not apply to public taxes or debts related to the purchase of the homestead, while also establishing that the homestead exemption for U.S. citizens regarding real property tax debt is the full value of the homestead.

Furthermore, the bill introduces protections for homeowners who have used their property as a principal residence for ten years or more, stating that such properties cannot be sold to satisfy debts. Homeowners must provide proof of residency and U.S. citizenship to prevent tax sales, 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 found 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