SB2526 • 2026

County Government

AN ACT to amend Tennessee Code Annotated, Title 5, Chapter 14, Part 1 and Section 5-21-130, relative to the sale of surplus real property by counties.

Active

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

Sponsor: Hatcher
Last action: 2026-02-05
Official status: Passed on Second Consideration, refer to Senate State and Local Government Committee
Effective date: Not listed

Plain English Breakdown

The official bill text does not provide information on the immediate effect of the bill becoming law, but it states that the public welfare requires this act to take effect upon becoming a law.

County Property Sales

This bill allows Tennessee counties to sell surplus or unusable real property directly to third parties without auctions or sealed bids if approved by county officials and appraised at fair market value.

What This Bill Does

Allows a county to sell extra, old, or unused land to another person or company.
Requires the sale price to be at least what an appraiser says is fair based on two state-licensed appraisers' opinions.
Does not need public auctions or sealed bids for these sales.
Needs approval from a majority of county officials.

Who It Names or Affects

Counties in Tennessee
County legislative bodies
Third parties interested in buying surplus property

Terms To Know

Surplus real property: Land or buildings that a county no longer needs.
Arms-length transaction: A business deal where both sides act independently and do not know each other well, ensuring fairness.

Limits and Unknowns

The bill does not specify what happens if the appraisers disagree on fair market value.
It is unclear how this change will affect existing laws about selling county property.

Bill History

Date Tennessee General Assembly
2026-02-05 Tennessee General Assembly
Passed on Second Consideration, refer to Senate State and Local Government Committee
2026-02-02 Tennessee General Assembly
Introduced, Passed on First Consideration
2026-02-02 Tennessee General Assembly
Filed for introduction

Official Summary Text

Abstract summarizes the bill.

Current Bill Text

Read the full stored bill text

<BillNo> <Sponsor>

SENATE BILL 2526
By Hatcher
SB2526
012072
- 1 -

AN ACT to amend Tennessee Code Annotated, Title 5,
Chapter 14, Part 1 and Section 5-21-130, relative
to the sale of surplus real property by counties.

BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF TENNESSEE:
SECTION 1. Tennessee Code Annotated, Section 5-14-108, is amended by adding the
following as a new subsection:
(q) Notwithstanding another law to the contrary, a county may sell real property
that has been declared surplus, obsolete, or unusable in an arms-length transaction to a
third party for a price not less than its fair market value as determined by at least two (2)
appraisers duly licensed in this state without requiring public auction or sealed bids,
upon approval by a majority vote of the county legislative body.
SECTION 2. Tennessee Code Annotated, Section 5-21-130, is amended by designating
the existing language subsection (a) and adding the following as a new subsection (b):
(b) Notwithstanding another law to the contrary, a county may sell real property
that has been declared surplus, obsolete, or unusable in an arms-length transaction to a
third party for a price not less than its fair market value as determined by at least two (2)
appraisers duly licensed in this state without requiring public auction or sealed bids,
upon approval by a majority vote of the county legislative body.
SECTION 3. If any provision of this act or its application to any person or circumstance
is held invalid, then the invalidity does not affect other provisions or applications of the act that
can be given effect without the invalid provision or application, and to that end, the provisions of
this act are severable.
SECTION 4. This act takes effect upon becoming a law, the public welfare requiring it.