HB2406 • 2026

Taxes, Real Property

AN ACT to amend Tennessee Code Annotated, Section 67-5-212, relative to property tax exemptions.

Taxes

Active

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

Sponsor: Scarbrough, Yager
Last action: 2026-04-13
Official status: Taken off notice for cal. in State & Local Government Committee
Effective date: Not listed

Plain English Breakdown

The bill summary text does not provide details on how the change will affect local government revenues beyond the initial fiscal year.

Property Tax Exemption for Tourist Resorts

This bill increases the property tax exemption limit from 100 to 400 acres per county for certain nonprofit entities owning or operating a specific type of tourist resort in Clinton, Tennessee.

What This Bill Does

Increases the maximum exempt acreage limit from 100 to 400 acres per county for any nonprofit entity that owns or operates a premier type tourist resort as defined by the bill.

Who It Names or Affects

Nonprofit entities owning or operating a specific type of tourist resort in Clinton, Tennessee.
Local governments collecting property taxes.

Terms To Know

Premier Type Tourist Resort: A nonprofit entity's facility that includes event venues for weddings and other gatherings, dog parks with obstacle courses, a tree grove, convention space, restaurant, scenic mountain views, and is over 17,000 square feet.

Limits and Unknowns

The bill only applies to nonprofit entities in Clinton, Tennessee.
It does not specify how the change will affect local government revenues beyond the initial fiscal year.

Amendments

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

SA0624

Amendment 1-0 to SB2054

Plain English: The amendment adds an exemption from property taxes for certain structures and improvements related to nonprofit-owned or operated premier type tourist resorts in Tennessee.

Adds an exemption from property tax on real and personal property for all structures and site improvements associated with a nonprofit entity owning or operating a 'premier type tourist resort'.
Specifies that the maximum undeveloped land owned by such a resort can be exempt up to four hundred (400) acres.

The amendment uses specific legal terms like 'premier type tourist resort' which are defined elsewhere in Tennessee law, making it hard to explain without additional context.
It's unclear how this exemption will be enforced or verified by tax authorities.

Bill History

2026-04-13 Tennessee General Assembly
Taken off notice for cal. in State & Local Government Committee
2026-04-08 Tennessee General Assembly
Placed on cal. State & Local Government Committee for 4/13/2026
2026-04-08 Tennessee General Assembly
Action def. in State & Local Government Committee to the Next Calendar
2026-04-01 Tennessee General Assembly
Placed on cal. State & Local Government Committee for 4/8/2026
2026-04-01 Tennessee General Assembly
Action def. in State & Local Government Committee to 4/8/2026
2026-03-25 Tennessee General Assembly
Placed on cal. State & Local Government Committee for 3/31/2026
2026-03-25 Tennessee General Assembly
Action def. in State & Local Government Committee to 3/31/2026
2026-03-19 Tennessee General Assembly
Rcvd. from S., held on H. desk.
2026-03-18 Tennessee General Assembly
Placed on cal. State & Local Government Committee for 3/24/2026
2026-03-18 Tennessee General Assembly
Rec for pass if am by s/c ref. to State & Local Government Committee
2026-03-16 Tennessee General Assembly
Engrossed; ready for transmission to House
2026-03-16 Tennessee General Assembly
Passed Senate as amended, Ayes 30, Nays 0
2026-03-16 Tennessee General Assembly
Senate adopted Amendment (Amendment 1 - SA0624)
2026-03-13 Tennessee General Assembly
Placed on Senate Regular Calendar for 3/16/2026
2026-03-11 Tennessee General Assembly
Placed on s/c cal Cities & Counties Subcommittee for 3/18/2026
2026-03-11 Tennessee General Assembly
Action Def. in s/c Cities & Counties Subcommittee to 3/18/2026
2026-03-10 Tennessee General Assembly
Recommended for passage with amendment/s, refer to Senate Calendar Committee Ayes 9, Nays 0 PNV 0
2026-03-04 Tennessee General Assembly
Placed on s/c cal Cities & Counties Subcommittee for 3/11/2026
2026-03-04 Tennessee General Assembly
Sponsor(s) Added.
2026-03-03 Tennessee General Assembly
Placed on Senate State and Local Government Committee calendar for 3/10/2026
2026-02-05 Tennessee General Assembly
Assigned to s/c Cities & Counties Subcommittee
2026-02-05 Tennessee General Assembly
P2C, ref. to State & Local Government Committee
2026-02-05 Tennessee General Assembly
Passed on Second Consideration, refer to Senate State and Local Government Committee
2026-02-04 Tennessee General Assembly
Intro., P1C.
2026-02-03 Tennessee General Assembly
Filed for introduction
2026-02-02 Tennessee General Assembly
Introduced, Passed on First Consideration
2026-01-22 Tennessee General Assembly
Filed for introduction

Official Summary Text

Present law creates an exemption from property taxation the real and personal property owned by any
religious, charitable, scientific, or nonprofit educational institution that is occupied, and actually used by, the institution or its officers purely and exclusively for carrying out one or more of the exempt purposes for which the institution was create
d or exists. However, land not necessary to support exempt structures or site improvement associated with exempt structures is not eligible for exemption beyond a maximum of 100 acres per county.

This bill increases the maximum exempt acre limit to 400 acres per county for any nonprofit entity that owns or operates a premier type tourist resort that (i) serves as an event venue for weddings, a farmer's market, photography, birthdays, festivals, a
nd similar events; (ii) contains aa small and large dog park with obstacle courses and a dog wash station; (iii) contains a tree grove; (iv) operates as a facility that is greater than 17,000 square feet containing a dual convention space that can accommo
da
te up to 500 people, and a restaurant with indoor and outdoor seating for approximately 200 guests; (v) offers scenic mountain overlook views; and (vi) is located in Clinton, Tennessee.

ON MARCH 16, 2026, THE SENATE ADOPTED AMENDMENT #1 AND PASSED SENATE BILL 2054, AS AMENDED.

AMENDMENT #1 revises the bill to exempt all structures and site improvements associated with and held by a nonprofit entity, and its wholly owned subsidiaries, owning or operating a premier type tourist resort as described in the bill summary, from prope
rty tax on real and personal property regardless of use and raises the maximum exemption for undeveloped land owned by the premier type tourist resort to 400 acres.

Current Bill Text

Read the full stored bill text

SENATE BILL 2054
By Yager

HOUSE BILL 2406
By Scarbrough
HB2406
010564
- 1 -

AN ACT to amend Tennessee Code Annotated, Section
67-5-212, relative to property tax exemptions.

BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF TENNESSEE:
SECTION 1. Tennessee Code Annotated, Section 67-5-212(n), is amended by deleting
the period (.) at the end of the first sentence and adding the following:
; provided, however, that the exemption shall be a maximum of four hundred (400) acres
for any nonprofit entity that owns or operates a premier type tourist resort under § 57-4-
102(30)(LLLLLL).
SECTION 2. This act takes effect upon becoming a law, the public welfare requiring it.