Senate Bill 2416 amends Tennessee Code Annotated, Section 67-5-502(d), regarding the assessment of property taxes on mineral interests and other interests in real property. The bill introduces new provisions that specify how these interests are assessed, particularly when they are owned separately from the general freehold. It establishes that such interests will be assessed to their respective owners unless they fall under specific conditions. These conditions include situations where the lessee's interest is governed by a lawful agreement for payments in lieu of taxes made on or after April 30, 2019, or if the lessee is part of a housing authority's corporate instrumentality and the improvements are used to promote affordable housing, with leases entered into or amended on or after April 30, 2026.

Additionally, the bill stipulates that in cases where the conditions outlined in subdivisions (d)(1)(A) or (B) apply, the property will be assessed solely to the governmental entity, including housing authorities, and will be subject to all applicable exemptions. This legislative change aims to clarify the assessment process for certain property interests and support affordable housing initiatives in Tennessee. The act will take effect upon becoming law.

Statutes affected:
Introduced: 67-5-502(d), 67-5-502