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HB0842 • 2026

Real Property

AN ACT to amend Tennessee Code Annotated, Section 67-4-409, relative to taxes on transfers of realty.

Taxes
Enacted

This bill passed the Legislature and reached final enactment based on the latest official action.

Sponsor
Crawford, Walley
Last action
2025-05-15
Official status
Comp. became Pub. Ch. 441
Effective date
Not listed

Plain English Breakdown

The official source material does not provide detailed information on how the remaining funds are allocated after remitting half back to counties.

Act Amending Real Property Transfer Taxes

This act changes how recordation tax revenue from real estate transactions is distributed by remitting half back to counties and adjusting allocations for certain funds.

What This Bill Does

  • Requires the Department of Revenue to remit 50% of the recordation taxes collected within each county back to that county after specific withholdings and allocations.
  • Adjusts how certain funds receive money from these taxes, including changes for the wetland acquisition fund to allow spending on law enforcement personnel expenses under specific conditions.

Who It Names or Affects

  • County governments that will receive a portion of real estate transfer tax revenue.
  • Residents and businesses involved in real estate transactions who pay recordation taxes.

Terms To Know

Recordation Tax
A tax paid for the privilege of having a document related to property transfers recorded by the government.
Wetland Acquisition Fund
A fund used for acquiring and maintaining wetlands, which may now also be used for law enforcement expenses under certain conditions.

Limits and Unknowns

  • The exact amount of money that will go to counties is not specified as it depends on the total tax collected.
  • Details about how the remaining funds are allocated after remitting half back to counties are not fully explained in plain language.

Amendments

These notes stay tied to the official amendment files and metadata from the legislature.

Amendment 1-0 to HB0842

Plain English: The amendment removes the introductory statement (preamble) from a bill related to real property taxes.

  • Removes the preamble section of Senate Bill No. 843 and House Bill No. 842.
  • The exact content or purpose of the removed preamble is not provided, so its specific details cannot be explained.
Amendment 2-0 to HB0842

Plain English: The amendment changes how a portion of real estate transfer taxes are used by creating new rules for the Wetland Acquisition Fund and allowing certain transfers to another fund.

  • Changes the use of three and one-fourth cents (3.25¢) from each tax on real property transfers, directing it into a special account called the 1986 wetland acquisition fund.
  • Specifies that funds in this new account can be used to maintain state-owned wildlife properties, pay for law enforcement personnel related to wildlife conservation, and transfer money to another fund with approval.
  • The amendment text does not specify all the details about how these changes will affect existing laws or practices.
  • It is unclear from this text alone what specific impacts this change might have on local budgets or real estate transactions.
Amendment 1-0 to SB0843

Plain English: The amendment changes how funds are managed in the 1986 wetland acquisition fund by allowing certain expenditures and transfers.

  • Three and one-fourth cents (3.25¢) of real property transfer taxes will be credited to a special account called the 1986 Wetland Acquisition Fund.
  • The fund can now be used for maintaining state-owned wildlife properties, paying law enforcement personnel salaries and expenses, and transferring funds to another trust fund with specific conditions.
  • The amendment text does not specify all details about how the fund will operate or be managed beyond what is explicitly stated.
Amendment 2-0 to SB0843

Plain English: The amendment removes the introductory statement (preamble) from a bill related to real property taxes.

  • Removes the preamble of Senate Bill No. 843 and House Bill No. 842.
  • The exact content of the removed preamble is not provided, so its specific details cannot be explained.
Amendment 3-0 to SB0843

Plain English: The amendment changes how funds can be used by adding a condition that the fund balance must exceed six million dollars during a monthly financial period before certain expenditures are allowed.

  • Adds a requirement that the fund balance must exceed $6,000,000 in a given month before money can be spent on maintaining and enhancing state-owned property under the Tennessee Wildlife Resources Agency's jurisdiction.
  • Adds a similar condition for spending on law enforcement personnel salaries, benefits, and other expenses necessary to carry out their duties.
  • The amendment text does not specify what happens if the fund balance is below $6,000,000; it only describes conditions under which expenditures are allowed.

Bill History

  1. 2025-05-15 Tennessee General Assembly

    Comp. became Pub. Ch. 441

  2. 2025-05-15 Tennessee General Assembly

    Effective date(s) 07/01/2025

  3. 2025-05-15 Tennessee General Assembly

    Pub. Ch. 441

  4. 2025-05-09 Tennessee General Assembly

    Signed by Governor.

  5. 2025-05-01 Tennessee General Assembly

    Transmitted to Governor for action.

  6. 2025-04-30 Tennessee General Assembly

    Signed by H. Speaker

  7. 2025-04-29 Tennessee General Assembly

    Signed by Senate Speaker

  8. 2025-04-25 Tennessee General Assembly

    Enrolled and ready for signatures

  9. 2025-04-21 Tennessee General Assembly

    Comp. SB subst.

  10. 2025-04-21 Tennessee General Assembly

    Sponsor(s) Added.

  11. 2025-04-21 Tennessee General Assembly

    Sponsor(s) Added.

  12. 2025-04-21 Tennessee General Assembly

    Passed H., Ayes 81, Nays 3, PNV 5

  13. 2025-04-21 Tennessee General Assembly

    Am. withdrawn. (Amendment 2 - HA0387)

  14. 2025-04-21 Tennessee General Assembly

    Am. withdrawn. (Amendment 1 - HA0386)

  15. 2025-04-21 Tennessee General Assembly

    Subst. for comp. HB.

  16. 2025-04-21 Tennessee General Assembly

    Engrossed; ready for transmission to House

  17. 2025-04-21 Tennessee General Assembly

    Passed Senate as amended, Ayes 28, Nays 3, PNV 1

  18. 2025-04-21 Tennessee General Assembly

    Senate adopted Amendment (Amendment 3 - SA0426)

  19. 2025-04-21 Tennessee General Assembly

    Senate adopted Amendment (Amendment 2 - SA0375)

  20. 2025-04-21 Tennessee General Assembly

    Senate adopted Amendment (Amendment 1 - SA0113)

  21. 2025-04-17 Tennessee General Assembly

    H. Placed on Regular Calendar for 4/21/2025

  22. 2025-04-17 Tennessee General Assembly

    Placed on cal. Calendar & Rules Committee for 4/17/2025

  23. 2025-04-17 Tennessee General Assembly

    Rec. for pass; ref to Calendar & Rules Committee

  24. 2025-04-17 Tennessee General Assembly

    Rec. for pass by s/c ref. to Finance, Ways, and Means Committee

  25. 2025-04-17 Tennessee General Assembly

    Placed on Senate Regular Calendar for 4/21/2025

  26. 2025-04-16 Tennessee General Assembly

    Placed on s/c cal Finance, Ways, and Means Subcommittee for 4/17/2025

  27. 2025-04-15 Tennessee General Assembly

    Recommended for passage with amendment/s, refer to Senate Calendar Committee Ayes 10, Nays 0 PNV 0

  28. 2025-04-14 Tennessee General Assembly

    Placed on s/c cal Finance, Ways, and Means Subcommittee for 4/14/2025

  29. 2025-04-14 Tennessee General Assembly

    Placed behind the budget

  30. 2025-04-10 Tennessee General Assembly

    Placed on s/c cal Finance, Ways, and Means Subcommittee for 4/14/2025

  31. 2025-04-10 Tennessee General Assembly

    Placed on Senate Finance, Ways, and Means Committee calendar for 4/15/2025

  32. 2025-04-10 Tennessee General Assembly

    Rule #83(8) Suspended, to be heard in Senate Finance, Ways & Means Committee on 4/15/2025

  33. 2025-04-09 Tennessee General Assembly

    Assigned to s/c Finance, Ways, and Means Subcommittee

  34. 2025-04-09 Tennessee General Assembly

    Rec. for pass. if am., ref. to Finance, Ways, and Means Committee

  35. 2025-04-09 Tennessee General Assembly

    Action deferred in Senate Finance, Ways, and Means Committee to 4/15/2025

  36. 2025-04-09 Tennessee General Assembly

    Placed on Senate Finance, Ways, and Means Committee calendar for 4/9/2025

  37. 2025-04-08 Tennessee General Assembly

    Action deferred in Senate Finance, Ways, and Means Committee to 4/9/2025

  38. 2025-04-02 Tennessee General Assembly

    Placed on cal. State & Local Government Committee for 4/9/2025

  39. 2025-04-02 Tennessee General Assembly

    Action def. in State & Local Government Committee to 4/9/2025

  40. 2025-04-01 Tennessee General Assembly

    Placed on Senate Finance, Ways, and Means Committee calendar for 4/8/2025

  41. 2025-03-31 Tennessee General Assembly

    Sponsor(s) Added.

  42. 2025-03-26 Tennessee General Assembly

    Placed on cal. State & Local Government Committee for 4/2/2025

  43. 2025-03-26 Tennessee General Assembly

    Action def. in State & Local Government Committee to 4/2/2025

  44. 2025-03-26 Tennessee General Assembly

    Recommended for passage, refer to Senate Finance, Ways, and Means Committee

  45. 2025-03-19 Tennessee General Assembly

    Placed on cal. State & Local Government Committee for 3/26/2025

  46. 2025-03-19 Tennessee General Assembly

    Rec for pass if am by s/c ref. to State & Local Government Committee

  47. 2025-03-19 Tennessee General Assembly

    Placed on Senate Energy, Ag., and Nat. Resources Committee calendar for 3/26/2025

  48. 2025-03-19 Tennessee General Assembly

    Action deferred in Senate Energy, Ag., and Nat. Resources Committee to 3/26/2025

  49. 2025-03-13 Tennessee General Assembly

    Placed on Senate Energy, Ag., and Nat. Resources Committee calendar for 3/19/2025

  50. 2025-03-12 Tennessee General Assembly

    Placed on s/c cal Cities & Counties Subcommittee for 3/19/2025

  51. 2025-03-11 Tennessee General Assembly

    Sponsor change.

  52. 2025-03-11 Tennessee General Assembly

    Sponsor(s) withdrawn.

  53. 2025-03-11 Tennessee General Assembly

    Recommended for passage with amendment/s, refer to Senate Energy, Ag., & NR Committee Ayes 8, Nays 0 PNV 0

  54. 2025-03-06 Tennessee General Assembly

    Sponsor(s) Added.

  55. 2025-03-05 Tennessee General Assembly

    Taken off notice for cal in s/c Cities & Counties Subcommittee of State & Local Government Committee

  56. 2025-03-04 Tennessee General Assembly

    Placed on Senate State and Local Government Committee calendar for 3/11/2025

  57. 2025-03-04 Tennessee General Assembly

    Action deferred in Senate State and Local Government Committee to 3/11/2025

  58. 2025-02-26 Tennessee General Assembly

    Placed on s/c cal Cities & Counties Subcommittee for 3/5/2025

  59. 2025-02-25 Tennessee General Assembly

    Placed on Senate State and Local Government Committee calendar for 3/4/2025

  60. 2025-02-12 Tennessee General Assembly

    Passed on Second Consideration, refer to Senate State and Local Government Committee

  61. 2025-02-10 Tennessee General Assembly

    Introduced, Passed on First Consideration

  62. 2025-02-06 Tennessee General Assembly

    Assigned to s/c Cities & Counties Subcommittee

  63. 2025-02-06 Tennessee General Assembly

    P2C, ref. to State & Local Government Committee

  64. 2025-02-05 Tennessee General Assembly

    Intro., P1C.

  65. 2025-02-04 Tennessee General Assembly

    Filed for introduction

  66. 2025-02-04 Tennessee General Assembly

    Filed for introduction

Official Summary Text

On all transfers of realty, whether by deed, court deed, decree, partition deed, or other instrument evidencing transfer of any interest in real estate, present law requires there to be a tax paid for the privilege of having the tran
sfer recorded, for state purposes only, of 37¢
per $100. This bill requires the department of revenue ("department") to remit back to each county, respectively, 50% of the recordation taxes on the transfer of realty that are collected within that county,

after certain withholdings and allocations.

WITHHOLDINGS AND ALLOCATIONS

For collecting and reporting recordation taxes levied, present law authorizes county registers to retain as commission 5% of the taxes so collected. However, 52% of the 5% commis
sion must be remitted to the state treasurer and credited to the general fund of the state. The county registers are also entitled to receive $1 as a fee for issuing each receipt for taxes imposed, to be paid when the tax receipt is issued. The fee, how
e
ver, is not applicable or collectible by any state officials charged with the collection of taxes.

Present law requires certain portions of the recordation tax levied be credited to special agency accounts, including 3.25¢
to the wetland acquisition fund
, 1.75¢
to the local parks land acquisition fund, 1.5¢
to the state lands acquisition fund, and 1.5¢
to the agricultural resources conservation fund.
However, beginning fiscal year 2015-2016, 50% of the total growth in collections of recordation tax over

the previous fiscal year and deposited to the above special funds must be transferred and credited elsewhere: 64% must be transferred and credited to the Tennessee Civil War or War Between the States site preservation fund and 36% must be transferred and
c
redited to the historic property land acquisition fund.

This bill requires the above withholdings and special allocations to occur and then the department to remit back to each county 50% of the remainder of the recordation taxes collected by the county.

APPLICATION

This bill applies to transfers of real property on or after July 1, 2025.

ON APRIL 21, 2025, THE SENATE ADOPTED AMENDMENTS #1, #2, AND #3 AND PASSED SENATE BILL 843, AS AMENDED.

AMENDMENT #1 rewrites the substantive provisions of this b
ill to expand the purposes for which monies in the wetland acquisition fund may be used.

Under present law, the fund may be used for
wetland and bottomland hardwood forest acquisition
,
to maintain and enhance state-owned property that is under the
TWRA
's
jurisdiction
, and (under certain circumstances) transfer to the
Tennessee heritage conservation trust fund
.

This amendment adds authorization to use monies in the wetland acquisition fund
for law enforcement personnel salaries, benefits, and other
expenses necessary to carry out their dutie
s under the boating and wildlife laws.

AMENDMENT #2 removes the preamble.

AMENDMENT #3 makes the following revisions:



Conditions the provision authorizing the fund to
be expended to maintain and enhance state-owned property that is under the Tennessee wildlife resources agency's jurisdiction
if the
fund balance exceeds six million dollars
during a monthly financial period.



Conditions the provision authorizing
the fund
to
be expended for law enforcement personnel salaries, benefits, and other expenses necessary to carry out their duties
if the
fund balance exceeds six million dollars
during a monthly financial period.

Current Bill Text

Read the full stored bill text 
SENATE BILL 843
By Walley

HOUSE BILL 842
By Crawford

HB0842
003003
- 1 -

AN ACT to amend Tennessee Code Annotated, Section
67-4-409, relative to taxes on transfers of realty.

WHEREAS, for many years, this State has imposed a tax of $0.37 per $100 of value for
the privilege of publicly recording documents evidencing all transfers of realty, whether by deed,
court deed, decree, partition deed, or other instrument evidencing transfer of any interest in real
estate; and
WHEREAS, although this tax is collected locally, it is currently remitted to the State, and
the revenue is not made available for use by local officials to address needs in the community
where the tax is collected; and
WHEREAS, county governments have few revenue options available to them for funding
the many crucial governmental services mandated by state law and are therefore largely
dependent upon property tax to fund these services; and
WHEREAS, county governments have been fiscally disciplined, allowing Tennessee to
remain a low property tax burden state; however, county budgets are increasingly strained by
factors such as inflation, challenges in recruiting and retaining qualified staff, and requirements
to meet state mandates like increasing teacher compensation; and
WHEREAS, many counties are experiencing rapid population growth as families are
choosing to move to Tennessee and settle in its communities, adding to the demand for county
services and infrastructure which are necessary to maintain the quality of life all Tennesseans
expect and deserve; and
WHEREAS, as the State continues to experience revenue collections in excess of
budgeted estimates, allocating one-half of the real estate transfer tax on a recurring basis to the

- 2 - 003003

county where collected would take pressure off local property taxes and allow for investment in
infrastructure and services without unduly burdening state finances and without increasing the
rate of this tax; now, therefore,
BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF TENNESSEE:
SECTION 1. Tennessee Code Annotated, Section 67-4-409(d), is amended by adding
the following as a new subdivision:
(4) Notwithstanding another law and except for commissions and fees retained
as otherwise provided in subdivisions (d)(2) and (3), and except for the credit of realty
transfer tax revenues to specific accounts or funds in accordance with subsections (g),
(i), (j), (l), and (m), the department shall remit back to each county, respectively, fifty
percent (50%) of the recordation taxes on the transfer of realty levied under subsection
(a) that are collected by county registers and remitted to the department, based on the
total amount of such taxes remitted to the department by county.
SECTION 2. This act takes effect July 1, 2025, and applies to transfers of real property
on or after such date, the public welfare requiring it.