Tennessee House Bill HB0319

Tennessee 2025-2026 Regular Session

• Introduced: 1/22/25
• Refer: 2/3/25

Caption

AN ACT to amend Tennessee Code Annotated, Title 67, Chapter 5, relative to property classification and assessment.

Summary

HB0319 amends Tennessee’s property tax classification law to broaden and clarify the definition of “residential property” for assessment purposes. Under current law, residential property is generally real property used for dwelling purposes with no more than one rental unit. The bill replaces that language with a definition that also requires the property be capable of being sold and purchased as a single unit in fee simple title, and it expressly includes property whether vacant, owner-occupied, rented, detached, or attached, so long as it has no more than one rental unit. The practical effect is to expand the types of properties that may qualify as residential property for tax classification and assessment, potentially affecting how certain homes, townhomes, condos, and similar single-unit dwellings are treated by local assessors. Because property classification can influence assessment methodology and tax treatment, the bill could affect homeowners, landlords with single rental units, and local property tax administration. The act would take effect immediately upon becoming law.

Impact

The bill would amend Tennessee Code Annotated, Title 67, Chapter 5, Section 67-5-501(11), changing the statutory definition of “residential property” used in property tax classification and assessment. By adding the fee-simple single-unit requirement and expressly covering vacant, owner-occupied, rented, detached, and attached properties with no more than one rental unit, it would likely broaden and clarify which parcels qualify for residential assessment treatment under state law.

Sentiment

The available voting history suggests limited but not unanimous support, with the House Cities & Counties Subcommittee voting 4-1 to defer the bill to summer study. That action indicates interest in the issue but also a desire for further review before advancing. No committee transcript is available, so the broader sentiment appears cautious rather than strongly favorable or opposed.

Contention

The main point of contention appears to be whether the revised definition of residential property is sufficiently clear and appropriate for tax assessment purposes, especially for attached housing types and properties that are vacant or rented. The subcommittee’s decision to defer to summer study suggests at least one member had concerns about the bill’s implications for local assessors, classification consistency, or tax impacts on different categories of property owners.