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HB2409 • 2026

Taxes, Real Property

AN ACT to amend Tennessee Code Annotated, Title 67, Chapter 5, relative to property taxes.

Housing Land Taxes
Active

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

Sponsor
Hicks T, Gardenhire
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.

Property Tax Changes for Housing Authorities

This bill amends Tennessee's property tax laws to allow lessees of housing authorities or related entities to have their properties assessed solely to the governmental entity if used for affordable housing purposes after April 30, 2026.

What This Bill Does

  • Adds an exception to the rule that mineral and other interests in real property must be taxed to the owner of the land.
  • Allows lessees who lease from housing authorities or related entities, after April 30, 2026, to have their properties assessed solely to the governmental entity if used for affordable housing purposes.
  • Ensures that any such properties are subject to all available tax exemptions.

Who It Names or Affects

  • Housing authorities and lessees who lease from them after April 30, 2026.
  • Local governments and the state of Tennessee in terms of property tax revenue.

Terms To Know

Lessee
A person or entity that rents or leases a property from another party (the lessor).
Housing Authority
An organization created by the government to provide affordable housing.

Limits and Unknowns

  • The exact impact on local governments' property tax revenue cannot be determined due to multiple unknown variables.
  • This bill does not specify how much or what kind of properties will qualify for these changes.

Bill History

  1. 2026-04-08 Tennessee General Assembly

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

  2. 2026-04-02 Tennessee General Assembly

    Rcvd. from S., held on H. desk.

  3. 2026-04-01 Tennessee General Assembly

    Placed behind the budget

  4. 2026-03-30 Tennessee General Assembly

    Engrossed; ready for transmission to House

  5. 2026-03-30 Tennessee General Assembly

    Passed Senate, Ayes 33, Nays 0

  6. 2026-03-27 Tennessee General Assembly

    Placed on Senate Consent Calendar 2 for 3/30/2026

  7. 2026-03-25 Tennessee General Assembly

    Placed on s/c cal Finance, Ways, and Means Subcommittee for 4/1/2026

  8. 2026-03-25 Tennessee General Assembly

    Recommended for passage, refer to Senate Calendar Committee

  9. 2026-03-25 Tennessee General Assembly

    Placed on Senate State and Local Government Committee calendar for 3/25/2026

  10. 2026-03-24 Tennessee General Assembly

    Placed on Senate State and Local Government Committee calendar for 3/25/2026

  11. 2026-03-24 Tennessee General Assembly

    Action deferred in Senate State and Local Government Committee to 3/25/2026

  12. 2026-03-19 Tennessee General Assembly

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

  13. 2026-03-18 Tennessee General Assembly

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

  14. 2026-03-18 Tennessee General Assembly

    Placed on Senate State and Local Government Committee calendar for 3/24/2026

  15. 2026-03-17 Tennessee General Assembly

    Action deferred in Senate State and Local Government Committee to 3/24/2026

  16. 2026-03-12 Tennessee General Assembly

    Placed on cal. State & Local Government Committee for 3/18/2026

  17. 2026-03-11 Tennessee General Assembly

    Action def. in State & Local Government Committee to 3/18/2026

  18. 2026-03-11 Tennessee General Assembly

    Placed on Senate State and Local Government Committee calendar for 3/17/2026

  19. 2026-03-05 Tennessee General Assembly

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

  20. 2026-03-04 Tennessee General Assembly

    Placed on cal. State & Local Government Committee for 3/11/2026

  21. 2026-03-04 Tennessee General Assembly

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

  22. 2026-03-02 Tennessee General Assembly

    Introduced, Passed on First Consideration

  23. 2026-03-02 Tennessee General Assembly

    Approved by Delayed Bills Committee

  24. 2026-02-25 Tennessee General Assembly

    Placed on s/c cal Cities & Counties Subcommittee for 3/4/2026

  25. 2026-02-05 Tennessee General Assembly

    Assigned to s/c Cities & Counties Subcommittee

  26. 2026-02-05 Tennessee General Assembly

    P2C, ref. to State & Local Government Committee

  27. 2026-02-04 Tennessee General Assembly

    Intro., P1C.

  28. 2026-02-03 Tennessee General Assembly

    Filed for introduction

  29. 2026-02-02 Tennessee General Assembly

    Refer to Senate Delayed Bills Committee

  30. 2026-02-02 Tennessee General Assembly

    Filed for introduction

Official Summary Text

Present law generally requires all
mineral interests and all other interests of whatever character
, not defined as products of the soil, in real property, including the interest that the lessee may have in and to the improvements erected upon land where the fee, reversion, or remainder
on it
is exempt to the owner, and which interest or interests is or are owned separately from the general freehold, are assessed to the owner, separately from the other interests in such real estate, which other interests are assessed to the owner, all of whic
h is assessed as real property
. However, there is an exception if the
lessee's or sublessee's interest in any such real property, including any improvements erected upon the land, is the subject of a lawful agreement between a lessee and this state or a local government, or instrumentality
of such government
, for payments in lieu of taxes, entered into or amended on or after April 30, 2019
.

This bill adds an additional exception to the requirement that mineral and other interests are assessed to the owner of real property if t
he lessee is the lessee of a lease entered into or amended on or after April 30, 2026, and such lessee is an entity that is a corporate instrumentality of a housing authority or an entity in which such corporate instrumentality holds an interest and the i
mprovements are used in furtherance of the housing authority's public purpose of promoting affordable housing.
In the
case of either exception, this bill provides that the property is assessed solely to the governmental entity, including a housing authority, and subject to all available exemptions.

Current Bill Text

Read the full stored bill text 
SENATE BILL 2416
By Gardenhire

HOUSE BILL 2409
By Hicks T
HB2409
012728
- 1 -

AN ACT to amend Tennessee Code Annotated, Title 67,
Chapter 5, relative to property taxes.

BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF TENNESSEE:
SECTION 1. Tennessee Code Annotated, Section 67-5-502(d), is amended by deleting
the subsection and substituting instead:
(d)
(1) All mineral interests and all other interests of whatever character, not
defined as products of the soil, in real property, including the interest that the
lessee may have in and to the improvements erected upon land where the fee,
reversion, or remainder therein is exempt to the owner, and which interest or
interests is or are owned separately from the general freehold, are assessed to
the owner thereof, separately from the other interests in such real estate, which
other interests are assessed to the owner thereof, all of which is assessed as
real property, unless:
(A) The lessee's or a sublessee's interest in any such real
property, including any improvements erected upon the land, is the
subject of a lawful agreement between a lessee and this state or a local
government, or instrumentality thereof, for payments in lieu of taxes,
entered into or amended on or after April 30, 2019; or
(B) The lessee is the lessee of a lease entered into or amended
on or after April 30, 2026, and such lessee is an entity that is a corporate
instrumentality of a housing authority created under § 13-20-104(b) or an
entity in which such corporate instrumentality holds an interest and the

- 2 - 012728

improvements are used in furtherance of the housing authority's public
purpose of promoting affordable housing.
(2) In cases described in subdivisions (d)(1)(A) or (B), such property is
assessed solely to the governmental entity, including a housing authority, and
subject to all applicable exemptions.
SECTION 2. This act takes effect upon becoming law, the public welfare requiring it.