Bill > HB0426

This bill amends Tennessee's property tax code to provide a specific property tax exemption for nonprofit religious institutions in counties with a metropolitan form of government and a population over 500,000 (which currently describes Davidson County, where Nashville is located). The exemption allows a nonprofit religious institution with an associated nonprofit business to claim a property tax exemption for parcels of land used for the institution's exempt purposes, with the unique provision that the exemption can be applied retroactively up to three years prior to the application date or the date the property began to be used for exempt purposes, whichever is later. Importantly, this exemption applies to properties acquired before the bill's effective date, meaning those properties will not be subject to taxation while owned by the exempt religious institution and used for its organizational purposes. However, the bill specifically states that counties are not required to refund any taxes already collected prior to the act's implementation. The bill takes effect immediately upon becoming law, reflecting the legislature's determination that this change serves the public welfare.