Bill > HB0649

This bill amends Tennessee's recordation tax law to require that 50 percent of recordation taxes collected from real estate property transfers be remitted back to the county where the property is located. Counties receiving these funds would be restricted in how they can use the money: they cannot spend it on salaries or benefits, but can use it for infrastructure projects (like roads, bridges, and schools), debt service for capital projects, matching funds for state and federal projects, and other nonrecurring expenses. Importantly, counties must dedicate at least 50 percent of these funds specifically to transportation infrastructure projects, and they cannot use these funds to replace existing state or local money allocated for road and bridge maintenance. The county highway department's chief administrative officer must provide recommendations to the county commission about how to use these funds when presenting the annual work program. The bill also stipulates that these funds cannot be considered a local revenue source when calculating five-year local fund averages. The law will take effect on July 1, 2025, and will apply to property transfers on or after that date.

Budget and Finance

https://wapp.capitol.tn.gov/apps/Billinfo/default.aspx?BillNumber=HB0649&ga=114