Official Summary Text
In order
to protect agricultural, forest, and open space land from the pressures of urbanization, scattered residential and commercial development, and the taxation system, present law classifies such qualified lands so that they are taxed on the value of the land
'
s current use, not highest and best use. Landowners must apply for such classifications of land and meet certain requirements. If the land is sold, the new owner must reapply. If the land is passed down to lineal descendants, the classification does no
t
need to be renewed.
This bill provides that if two landowners own a piece of agricultural, forest, or open space land together, with such ownership shared through a joint tenancy or tenancy by the entireties, then the surviving or remaining owner beco
mes the sole owner after one owner's death or divorce. In such a case, the surviving or remaining owner keeps the classification for the land and does not need to renew it.
ON FEBRUARY 24, 2025, THE HOUSE ADOPTED AMENDMENT #1 AND PASSED HOUSE BILL 297,
AS AMENDED.
AMENDMENT #1 clarifies that, in order for the classification to remain without renewal pursuant to the bill, the agricultural, forest, or open space land must continue to meet the minimum size requirements and other criteria necessary to qua
lify as such classification.
ON MARCH 13, 2025, THE SENATE SUBSTITUTED HOUSE BILL 297 FOR SENATE BILL 247, ADOPTED AMENDMENT #2, AND PASSED HOUSE BILL 297, AS AMENDED.
AMENDMENT #2 rewrites the bill to, instead, provide that if p
roperty is qualified as
agricultural, forest, or open space land
,
owned by two individuals, and held under the titles of tenancy by the entireties or of joint tenancy with right of survivorship,
then such land
is deemed to have unchanged ownership upon the death of an owner if t
he property is retained by the other owner through a right of survivorship or upon the divorce of the owners if the property is retained by either owner through division and distribution of property in the divorce proceeding.
Current Bill Text
Read the full stored bill text
HOUSE BILL 297
By Lamberth
SENATE BILL 247
By Haile
SB0247
001600
- 1 -
AN ACT to amend Tennessee Code Annotated, Title 11,
Chapter 14, Part 2; Title 11, Chapter 15 and Title
67, Chapter 5, relative to the Agricultural, Forest
and Open Space Land Act of 1976.
BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF TENNESSEE:
SECTION 1. Tennessee Code Annotated, Section 67-5-1005(a)(1), is amended by
adding the following language immediately after the third sentence of the subdivision:
Property that is qualified as agricultural, owned by two (2) individuals, and held under the
title, tenancy by the entireties, or the title, joint tenancy, is deemed to have unchanged
ownership upon the death or divorce of an owner if the property is retained by the other
owner through a right of survivorship.
SECTION 2. Tennessee Code Annotated, Section 67-5-1006(a)(1), is amended by
adding the following language immediately after the third sentence of the subdivision:
Property that is qualified as forest land, owned by two (2) individuals, and held under the
title, tenancy by the entireties, or the title, joint tenancy, is deemed to have unchanged
ownership upon the death or divorce of an owner if the property is retained by the other
owner through a right of survivorship.
SECTION 3. Tennessee Code Annotated, Section 67-5-1007(b)(1), is amended by
adding the following language immediately after the third sentence of the subdivision:
Property that is qualified as forest land, owned by two (2) individuals, and held under the
title, tenancy by the entireties, or the title, joint tenancy, is deemed to have unchanged
ownership upon the death or divorce of an owner if the property is retained by the other
owner through a right of survivorship.
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SECTION 4. This act takes effect upon becoming a law, the public welfare requiring it.