Tennessee House Bill HB0586

Tennessee 2025-2026 Regular Session

• Introduced: 1/30/25
• Refer: 2/5/25

Caption

AN ACT to amend Tennessee Code Annotated, Section 67-4-409, relative to recordation tax revenue.

Summary

HB0586 amends Tennessee’s recordation tax revenue distribution statute, Tennessee Code Annotated § 67-4-409. The bill changes how taxes collected under that section are split between county registers, county general funds, and the state. Under the revised formula, county registers would retain 5% of the taxes as commission for collecting and reporting the tax, and 50% would be transferred to the county general fund without being earmarked for a specific purpose. The remaining revenue would continue to be remitted to the state treasurer for deposit into the state funds already listed in the statute, subject to the existing allocation rules. In practical terms, the bill reallocates a larger share of recordation tax receipts to counties while preserving the state’s ability to distribute the rest according to current law. The act takes effect immediately upon becoming law.

Impact

This bill directly amends the state’s recordation tax revenue-sharing provisions in Tennessee Code Annotated § 67-4-409(d)(2). It affects county registers, county general funds, and the state treasury by changing the percentage of collected recordation taxes that counties may keep and by clarifying that half of the collections go to the county general fund without designation. The bill does not create a new tax or change the tax base; it redistributes existing revenue among local and state recipients.

Sentiment

Based on the bill text and the absence of committee transcripts or recorded votes, there is no documented debate or formal opposition in the provided materials. The measure appears administrative and fiscal in nature, suggesting a neutral-to-supportive posture focused on revenue allocation rather than policy controversy. No committee sentiment can be inferred from the available record beyond the fact that the bill was introduced and filed.

Contention

No specific points of contention are documented in the provided materials. If debated, the likely issue would be the fiscal tradeoff between county and state revenue shares, with counties benefiting from a larger local retention of recordation tax receipts and the state receiving a smaller remainder. County registers may also be relevant because the bill preserves a 5% commission for collection and reporting.