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SB0126 • 2026

Taxes, Real Property

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

Taxes
Active

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

Sponsor
Walley, Shaw
Last action
2025-01-16
Official status
Passed on Second Consideration, refer to Senate State & Local Government Committee
Effective date
Not listed

Plain English Breakdown

The bill summary text does not provide a specific effective date or detailed explanation of how the tax returns will be calculated, only that it applies on July 1, 2025.

Act to Return Half of Recordation Taxes to Counties

This act requires that half of the recordation taxes collected from real estate transactions be returned to the county where the property is located.

What This Bill Does

  • Changes Tennessee law so that fifty percent of recordation tax revenue must go back to the county where the real estate transaction happens.
  • Applies this change starting July 1, 2025, for all future real estate transfers.

Who It Names or Affects

  • Counties in Tennessee that collect recordation taxes from real property transactions.
  • People or businesses transferring real property who pay recordation taxes.

Terms To Know

Recordation tax
A tax charged when a deed is recorded, which shows the transfer of ownership of real estate.
Realty
Land and buildings or structures on it that are owned by someone.

Limits and Unknowns

  • The exact amount of money returned to each county depends on future real property transactions.
  • Does not change how commissions and fees for recordation taxes are handled.

Bill History

  1. 2025-01-28 Tennessee General Assembly

    Assigned to s/c Cities & Counties Subcommittee

  2. 2025-01-16 Tennessee General Assembly

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

  3. 2025-01-16 Tennessee General Assembly

    Ref. to State & Local Government Committee

  4. 2025-01-15 Tennessee General Assembly

    Introduced, Passed on First Consideration

  5. 2025-01-15 Tennessee General Assembly

    P2C held on desk, pending appointment of Standing Committees

  6. 2025-01-14 Tennessee General Assembly

    Filed for introduction

  7. 2025-01-14 Tennessee General Assembly

    Intro., P1C.

  8. 2025-01-09 Tennessee General Assembly

    Filed for introduction

Official Summary Text

Abstract summarizes the bill.

Current Bill Text

Read the full stored bill text 
HOUSE BILL 95
By Shaw

SENATE BILL 126
By Walley

SB0126
001270
- 1 -

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

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.