SB0843 • 2026

Real Property

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

Taxes

Active

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

Sponsor: Walley, Crawford
Last action: 2025-05-15
Official status: Effective date(s) 07/01/2025
Effective date: Not listed

Plain English Breakdown

The official source does not provide detailed information on the financial impact of these changes, leaving some uncertainty about long-term effects.

Act Amending Real Estate Transfer Tax in Tennessee

This act changes how recordation taxes from real estate transactions are distributed, giving half back to counties and adjusting allocations for certain funds.

What This Bill Does

Changes the distribution of recordation tax collected on real property transfers so that each county receives 50% of the tax collected within its borders after withholdings and special allocations.
Expands the use of funds from the wetland acquisition account to cover law enforcement personnel salaries and related costs if the fund balance exceeds six million dollars.

Who It Names or Affects

County governments in Tennessee will receive more funding from real estate transfer taxes.
The state government's general fund may see a reduction as counties get half of the recordation tax collected within their borders after withholdings and special allocations.
People involved in real estate transactions may notice changes in how these taxes are handled.

Terms To Know

Recordation Tax: A tax charged for recording documents that transfer ownership or interest in real property, such as deeds and court decrees.
Wetland Acquisition Fund: A fund used to purchase land with wetlands or bottomland hardwood forests, maintain state-owned properties under TWRA's jurisdiction, support the Tennessee heritage conservation trust fund, and cover law enforcement personnel salaries and related costs if the fund balance exceeds six million dollars.

Limits and Unknowns

The act only applies to real property transfers on or after July 1, 2025.
It is unclear how this change will affect local budgets and services in the long term.

Amendments

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

HA0386

Amendment 1-0 to HB0842

Plain English: The amendment removes the introductory statement (preamble) from a bill related to real property taxes in Tennessee.

Removes the preamble section of Senate Bill No. 843 and House Bill No. 842.

The exact content or purpose of the removed preamble is not provided, so its specific details cannot be explained.

HA0387

Amendment 2-0 to HB0842

Plain English: The amendment changes how a portion of real estate transfer taxes are used by creating new rules for the Wetland Acquisition Fund and allowing certain transfers to another fund.

Changes the use of three and one-fourth cents (3.25¢) from each tax on real property transfers, directing it into a special account called the 1986 wetland acquisition fund.
Specifies that funds in this new account can be used to maintain state-owned wildlife properties, pay for law enforcement personnel related to wildlife protection, and transfer money to another conservation trust fund with certain conditions.

The amendment text does not specify all the details about how these changes will affect existing laws or budgets.
It is unclear from this text alone what specific impacts this change might have on local wildlife management or budget allocations.

SA0113

Amendment 1-0 to SB0843

Plain English: The amendment changes how a portion of real estate transfer taxes are used by creating new rules for the Wetland Acquisition Fund and allowing certain transfers to another fund.

Changes the way three and one-fourth cents (3.25¢) from each real estate transfer tax is allocated, specifically for the Wetland Acquisition Fund.
Specifies that funds in the Wetland Acquisition Fund can be used to maintain state-owned property under the Tennessee Wildlife Resources Agency's control.
Allows the fund to cover salaries and expenses for law enforcement personnel as needed.
Permits transferring money from the Wetland Acquisition Fund to another fund called the Tennessee Heritage Conservation Trust Fund, with certain conditions.

The amendment text does not specify all details about how funds will be managed or used beyond what is explicitly stated.

SA0375

Amendment 2-0 to SB0843

Plain English: The amendment removes the introductory statement (preamble) from a bill related to real property taxes in Tennessee.

Removes the preamble section of Senate Bill No. 843, which is about amending tax laws for transfers of real estate.

The exact content and purpose of the removed preamble are not provided, so it's unclear what information or context was in that part.

SA0426

Amendment 3-0 to SB0843

Plain English: The amendment changes how funds can be used by adding a condition that the fund balance must exceed six million dollars during a monthly financial period before certain expenditures are allowed.

Adds a requirement that the fund balance must exceed $6,000,000 in a given month before it can be spent on maintaining and enhancing state-owned property under the Tennessee Wildlife Resources Agency's jurisdiction.
Adds a similar condition for spending on law enforcement personnel salaries, benefits, and other expenses necessary to carry out their duties.

The amendment text does not specify what happens if the fund balance is below $6,000,000; it only describes conditions under which expenditures are allowed.

Bill History

2025-05-15 Tennessee General Assembly
Effective date(s) 07/01/2025
2025-05-15 Tennessee General Assembly
Pub. Ch. 441
2025-05-15 Tennessee General Assembly
Comp. became Pub. Ch. 441
2025-05-09 Tennessee General Assembly
Signed by Governor.
2025-05-01 Tennessee General Assembly
Transmitted to Governor for action.
2025-04-30 Tennessee General Assembly
Signed by H. Speaker
2025-04-29 Tennessee General Assembly
Signed by Senate Speaker
2025-04-25 Tennessee General Assembly
Enrolled and ready for signatures
2025-04-21 Tennessee General Assembly
Sponsor(s) Added.
2025-04-21 Tennessee General Assembly
Passed H., Ayes 81, Nays 3, PNV 5
2025-04-21 Tennessee General Assembly
Am. withdrawn. (Amendment 2 - HA0387)
2025-04-21 Tennessee General Assembly
Am. withdrawn. (Amendment 1 - HA0386)
2025-04-21 Tennessee General Assembly
Subst. for comp. HB.
2025-04-21 Tennessee General Assembly
Engrossed; ready for transmission to House
2025-04-21 Tennessee General Assembly
Passed Senate as amended, Ayes 28, Nays 3, PNV 1
2025-04-21 Tennessee General Assembly
Senate adopted Amendment (Amendment 3 - SA0426)
2025-04-21 Tennessee General Assembly
Senate adopted Amendment (Amendment 2 - SA0375)
2025-04-21 Tennessee General Assembly
Senate adopted Amendment (Amendment 1 - SA0113)
2025-04-21 Tennessee General Assembly
Comp. SB subst.
2025-04-21 Tennessee General Assembly
Sponsor(s) Added.
2025-04-17 Tennessee General Assembly
Placed on Senate Regular Calendar for 4/21/2025
2025-04-17 Tennessee General Assembly
H. Placed on Regular Calendar for 4/21/2025
2025-04-17 Tennessee General Assembly
Placed on cal. Calendar & Rules Committee for 4/17/2025
2025-04-17 Tennessee General Assembly
Rec. for pass; ref to Calendar & Rules Committee
2025-04-17 Tennessee General Assembly
Rec. for pass by s/c ref. to Finance, Ways, and Means Committee
2025-04-16 Tennessee General Assembly
Placed on s/c cal Finance, Ways, and Means Subcommittee for 4/17/2025
2025-04-15 Tennessee General Assembly
Recommended for passage with amendment/s, refer to Senate Calendar Committee Ayes 10, Nays 0 PNV 0
2025-04-14 Tennessee General Assembly
Placed on s/c cal Finance, Ways, and Means Subcommittee for 4/14/2025
2025-04-14 Tennessee General Assembly
Placed behind the budget
2025-04-10 Tennessee General Assembly
Placed on Senate Finance, Ways, and Means Committee calendar for 4/15/2025
2025-04-10 Tennessee General Assembly
Rule #83(8) Suspended, to be heard in Senate Finance, Ways & Means Committee on 4/15/2025
2025-04-10 Tennessee General Assembly
Placed on s/c cal Finance, Ways, and Means Subcommittee for 4/14/2025
2025-04-09 Tennessee General Assembly
Action deferred in Senate Finance, Ways, and Means Committee to 4/15/2025
2025-04-09 Tennessee General Assembly
Placed on Senate Finance, Ways, and Means Committee calendar for 4/9/2025
2025-04-09 Tennessee General Assembly
Assigned to s/c Finance, Ways, and Means Subcommittee
2025-04-09 Tennessee General Assembly
Rec. for pass. if am., ref. to Finance, Ways, and Means Committee
2025-04-08 Tennessee General Assembly
Action deferred in Senate Finance, Ways, and Means Committee to 4/9/2025
2025-04-02 Tennessee General Assembly
Placed on cal. State & Local Government Committee for 4/9/2025
2025-04-02 Tennessee General Assembly
Action def. in State & Local Government Committee to 4/9/2025
2025-04-01 Tennessee General Assembly
Placed on Senate Finance, Ways, and Means Committee calendar for 4/8/2025
2025-03-31 Tennessee General Assembly
Sponsor(s) Added.
2025-03-26 Tennessee General Assembly
Recommended for passage, refer to Senate Finance, Ways, and Means Committee
2025-03-26 Tennessee General Assembly
Placed on cal. State & Local Government Committee for 4/2/2025
2025-03-26 Tennessee General Assembly
Action def. in State & Local Government Committee to 4/2/2025
2025-03-19 Tennessee General Assembly
Placed on Senate Energy, Ag., and Nat. Resources Committee calendar for 3/26/2025
2025-03-19 Tennessee General Assembly
Action deferred in Senate Energy, Ag., and Nat. Resources Committee to 3/26/2025
2025-03-19 Tennessee General Assembly
Placed on cal. State & Local Government Committee for 3/26/2025
2025-03-19 Tennessee General Assembly
Rec for pass if am by s/c ref. to State & Local Government Committee
2025-03-13 Tennessee General Assembly
Placed on Senate Energy, Ag., and Nat. Resources Committee calendar for 3/19/2025
2025-03-12 Tennessee General Assembly
Placed on s/c cal Cities & Counties Subcommittee for 3/19/2025
2025-03-11 Tennessee General Assembly
Recommended for passage with amendment/s, refer to Senate Energy, Ag., & NR Committee Ayes 8, Nays 0 PNV 0
2025-03-11 Tennessee General Assembly
Sponsor change.
2025-03-11 Tennessee General Assembly
Sponsor(s) withdrawn.
2025-03-06 Tennessee General Assembly
Sponsor(s) Added.
2025-03-05 Tennessee General Assembly
Taken off notice for cal in s/c Cities & Counties Subcommittee of State & Local Government Committee
2025-03-04 Tennessee General Assembly
Placed on Senate State and Local Government Committee calendar for 3/11/2025
2025-03-04 Tennessee General Assembly
Action deferred in Senate State and Local Government Committee to 3/11/2025
2025-02-26 Tennessee General Assembly
Placed on s/c cal Cities & Counties Subcommittee for 3/5/2025
2025-02-25 Tennessee General Assembly
Placed on Senate State and Local Government Committee calendar for 3/4/2025
2025-02-12 Tennessee General Assembly
Passed on Second Consideration, refer to Senate State and Local Government Committee
2025-02-10 Tennessee General Assembly
Introduced, Passed on First Consideration
2025-02-06 Tennessee General Assembly
Assigned to s/c Cities & Counties Subcommittee
2025-02-06 Tennessee General Assembly
P2C, ref. to State & Local Government Committee
2025-02-05 Tennessee General Assembly
Intro., P1C.
2025-02-04 Tennessee General Assembly
Filed for introduction
2025-02-04 Tennessee General Assembly
Filed for introduction

Official Summary Text

On all transfers of realty, whether by deed, court deed, decree, partition deed, or other instrument evidencing transfer of any interest in real estate, present law requires there to be a tax paid for the privilege of having the tran
sfer recorded, for state purposes only, of 37¢
per $100. This bill requires the department of revenue ("department") to remit back to each county, respectively, 50% of the recordation taxes on the transfer of realty that are collected within that county,

after certain withholdings and allocations.

WITHHOLDINGS AND ALLOCATIONS

For collecting and reporting recordation taxes levied, present law authorizes county registers to retain as commission 5% of the taxes so collected. However, 52% of the 5% commis
sion must be remitted to the state treasurer and credited to the general fund of the state. The county registers are also entitled to receive $1 as a fee for issuing each receipt for taxes imposed, to be paid when the tax receipt is issued. The fee, how
e
ver, is not applicable or collectible by any state officials charged with the collection of taxes.

Present law requires certain portions of the recordation tax levied be credited to special agency accounts, including 3.25¢
to the wetland acquisition fund
, 1.75¢
to the local parks land acquisition fund, 1.5¢
to the state lands acquisition fund, and 1.5¢
to the agricultural resources conservation fund.
However, beginning fiscal year 2015-2016, 50% of the total growth in collections of recordation tax over

the previous fiscal year and deposited to the above special funds must be transferred and credited elsewhere: 64% must be transferred and credited to the Tennessee Civil War or War Between the States site preservation fund and 36% must be transferred and
c
redited to the historic property land acquisition fund.

This bill requires the above withholdings and special allocations to occur and then the department to remit back to each county 50% of the remainder of the recordation taxes collected by the county.

APPLICATION

This bill applies to transfers of real property on or after July 1, 2025.

ON APRIL 21, 2025, THE SENATE ADOPTED AMENDMENTS #1, #2, AND #3 AND PASSED SENATE BILL 843, AS AMENDED.

AMENDMENT #1 rewrites the substantive provisions of this b
ill to expand the purposes for which monies in the wetland acquisition fund may be used.

Under present law, the fund may be used for
wetland and bottomland hardwood forest acquisition
,
to maintain and enhance state-owned property that is under the
TWRA
's
jurisdiction
, and (under certain circumstances) transfer to the
Tennessee heritage conservation trust fund
.

This amendment adds authorization to use monies in the wetland acquisition fund
for law enforcement personnel salaries, benefits, and other
expenses necessary to carry out their dutie
s under the boating and wildlife laws.

AMENDMENT #2 removes the preamble.

AMENDMENT #3 makes the following revisions:



Conditions the provision authorizing the fund to
be expended to maintain and enhance state-owned property that is under the Tennessee wildlife resources agency's jurisdiction
if the
fund balance exceeds six million dollars
during a monthly financial period.



Conditions the provision authorizing
the fund
to
be expended for law enforcement personnel salaries, benefits, and other expenses necessary to carry out their duties
if the
fund balance exceeds six million dollars
during a monthly financial period.

Current Bill Text

Read the full stored bill text

HOUSE BILL 842
By Haston

SENATE BILL 843
By Walley

SB0843
003003
- 1 -

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

WHEREAS, for many years, this State has imposed a tax of $0.37 per $100 of value for
the privilege of publicly recording documents evidencing all transfers of realty, whether by deed,
court deed, decree, partition deed, or other instrument evidencing transfer of any interest in real
estate; and
WHEREAS, although this tax is collected locally, it is currently remitted to the State, and
the revenue is not made available for use by local officials to address needs in the community
where the tax is collected; and
WHEREAS, county governments have few revenue options available to them for funding
the many crucial governmental services mandated by state law and are therefore largely
dependent upon property tax to fund these services; and
WHEREAS, county governments have been fiscally disciplined, allowing Tennessee to
remain a low property tax burden state; however, county budgets are increasingly strained by
factors such as inflation, challenges in recruiting and retaining qualified staff, and requirements
to meet state mandates like increasing teacher compensation; and
WHEREAS, many counties are experiencing rapid population growth as families are
choosing to move to Tennessee and settle in its communities, adding to the demand for county
services and infrastructure which are necessary to maintain the quality of life all Tennesseans
expect and deserve; and
WHEREAS, as the State continues to experience revenue collections in excess of
budgeted estimates, allocating one-half of the real estate transfer tax on a recurring basis to the

- 2 - 003003

county where collected would take pressure off local property taxes and allow for investment in
infrastructure and services without unduly burdening state finances and without increasing the
rate of this tax; now, therefore,
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.