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HB1777 • 2026

Business Organizations

AN ACT to amend Tennessee Code Annotated, Title 4; Title 5; Title 6; Title 7; Title 13; Title 47; Title 48; Title 61; Title 66 and Title 67, relative to real estate investment trusts.

Housing Taxes
Active

The official status still shows this bill as active or still awaiting another formal step.

Sponsor
Leatherwood, Taylor
Last action
2026-04-08
Official status
Placed on s/c cal Finance, Ways, and Means Subcommittee for 4/14/2026
Effective date
Not listed

Plain English Breakdown

Checked against official source text during the last sync.

Report on Real Estate Investment Trusts

This bill requires the comptroller of the treasury to report information about real estate investment trusts' purchases and sales of single-family homes in Tennessee for the year 2025.

What This Bill Does

  • Defines a 'real estate investment trust' or REIT as a business entity that qualifies under federal law and buys ten or more single-family homes in Tennessee during 2025.
  • Requires the comptroller of the treasury to submit a report by December 31, 2026, about REITs' activities in buying and selling single-family homes.
  • Includes details such as the number of homes bought and their appraised values.
  • Lists how many homes were acquired through foreclosure, sold back, or used for rental purposes.

Who It Names or Affects

  • The comptroller of the treasury
  • Real estate investment trusts (REITs) in Tennessee

Terms To Know

real estate investment trust (REIT)
A business entity that qualifies as a real estate investment trust under federal law and buys ten or more single-family homes in Tennessee during 2025.
comptroller of the treasury
An official who manages a state's financial records and reports.

Limits and Unknowns

  • The bill does not specify what will happen with the information in the report.
  • It only covers REIT activities for single-family homes bought or sold in Tennessee during 2025.

Amendments

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

Amendment 1-0 to HB1777

Plain English: The amendment changes how Tennessee taxes real estate investment trusts (REITs) by altering rules for deductions and classifications of rental units.

  • Removes the ability for certain types of REITs to deduct dividends paid as a tax deduction.
  • Adds definitions for 'real estate investment trust' and 'REIT-owned rental unit'.
  • Classifies multiple parcels owned by a single REIT containing rental units as commercial property.
  • The amendment text does not specify all the details of how these changes will be implemented or their full impact on tax calculations.
Amendment 2-0 to HB1777

Plain English: The amendment changes how certain types of Real Estate Investment Trusts (REITs) can deduct dividends and be exempt from excise taxes in Tennessee.

  • Modifies the rules for captive REITs, public REITs, and private REITs regarding dividend deductions based on ownership and rental income from single-family residential properties.
  • Exempts partnerships distributing net earnings or losses to a public REIT from excise tax, but this exemption does not apply if the public REIT owns and rents out residential real estate.
  • Adjusts how 'net earnings' or 'net loss' is calculated for partnerships owned by public REITs, excluding those that own and rent residential properties.
  • The amendment text does not provide specific details on the impact of these changes beyond the tax code adjustments.
  • It's unclear how this will affect existing businesses or compliance requirements without further explanation.

Bill History

  1. 2026-04-08 Tennessee General Assembly

    Placed on s/c cal Finance, Ways, and Means Subcommittee for 4/14/2026

  2. 2026-04-08 Tennessee General Assembly

    Action Def. in s/c Finance, Ways, and Means Subcommittee to 4/15/2026

  3. 2026-04-07 Tennessee General Assembly

    Failed in Senate Commerce and Labor Committee (no second)

  4. 2026-04-01 Tennessee General Assembly

    Placed on s/c cal Finance, Ways, and Means Subcommittee for 4/8/2026

  5. 2026-04-01 Tennessee General Assembly

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

  6. 2026-04-01 Tennessee General Assembly

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

  7. 2026-04-01 Tennessee General Assembly

    Placed on Senate Commerce and Labor Committee calendar for 4/7/2026

  8. 2026-03-30 Tennessee General Assembly

    Sponsor(s) Added.

  9. 2026-03-25 Tennessee General Assembly

    Placed on cal. Commerce Committee for 4/1/2026

  10. 2026-03-25 Tennessee General Assembly

    Action def. in Commerce Committee to 4/1/2026

  11. 2026-03-18 Tennessee General Assembly

    Placed on cal. Commerce Committee for 3/25/2026

  12. 2026-03-18 Tennessee General Assembly

    Rec for pass if am by s/c ref. to Commerce Committee

  13. 2026-03-18 Tennessee General Assembly

    Sponsor(s) Added.

  14. 2026-03-12 Tennessee General Assembly

    Sponsor(s) Added.

  15. 2026-03-11 Tennessee General Assembly

    Placed on s/c cal Banking & Consumer Affairs Subcommittee for 3/18/2026

  16. 2026-03-11 Tennessee General Assembly

    Action Def. in s/c Banking & Consumer Affairs Subcommittee to 3/18/2026

  17. 2026-03-10 Tennessee General Assembly

    Action deferred in Senate Commerce and Labor Committee to 3/17/2026

  18. 2026-03-04 Tennessee General Assembly

    Placed on s/c cal Banking & Consumer Affairs Subcommittee for 3/11/2026

  19. 2026-03-04 Tennessee General Assembly

    Assigned to s/c Banking & Consumer Affairs Subcommittee

  20. 2026-03-04 Tennessee General Assembly

    Ref. to Commerce Committee

  21. 2026-03-04 Tennessee General Assembly

    Placed on Senate Commerce and Labor Committee calendar for 3/10/2026

  22. 2026-03-03 Tennessee General Assembly

    Action deferred in Senate Commerce and Labor Committee to 3/10/2026

  23. 2026-02-24 Tennessee General Assembly

    Placed on Senate Commerce and Labor Committee calendar for 3/3/2026

  24. 2026-02-05 Tennessee General Assembly

    Passed on Second Consideration, refer to Senate Commerce and Labor Committee

  25. 2026-02-02 Tennessee General Assembly

    Introduced, Passed on First Consideration

  26. 2026-01-22 Tennessee General Assembly

    P2C, caption bill, held on desk - pending amdt.

  27. 2026-01-22 Tennessee General Assembly

    Filed for introduction

  28. 2026-01-21 Tennessee General Assembly

    Intro., P1C.

  29. 2026-01-20 Tennessee General Assembly

    Filed for introduction

Official Summary Text

Abstract summarizes the bill.

Current Bill Text

Read the full stored bill text 
SENATE BILL 2126
By Taylor

HOUSE BILL 1777
By Leatherwood
HB1777
010785
- 1 -

AN ACT to amend Tennessee Code Annotated, Title 4;
Title 5; Title 6; Title 7; Title 13; Title 47; Title 48;
Title 61; Title 66 and Title 67, relative to real estate
investment trusts.

BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF TENNESSEE:
SECTION 1.
(a) As used in this section, "real estate investment trust" or "REIT" means a
business entity that qualifies as a real estate investment trust, as defined in 26 U.S.C. §
856, and that purchases or acquires for consideration ten (10) or more single-family
homes in this state in calendar year 2025.
(b) Using existing available data and deed records, on or before December 31,
2026, the comptroller of the treasury shall submit a report to the governor, the speaker of
the senate, the speaker of the house of representatives, the chair of the state and local
government committee of the senate, and the chair of the committee of the house of
representatives having jurisdiction over housing containing a summary of the following
de-identified information related to REITs' purchases and sales of single-family homes in
this state for calendar year 2025:
(1) The number of single-family homes purchased by each REIT in the
calendar year 2025, including the appraised value of each home purchased; and
(2) The number of homes described in subdivision (b)(1) that were:
(A) Acquired through foreclosure;
(B) Sold by each REIT during the same year; and
(C) Used as rental properties during the same year.
SECTION 2. This act takes effect upon becoming a law, the public welfare requiring it.