AN ACT to amend Tennessee Code Annotated, Title 67, Chapter 5, relative to delinquent taxes.
Summary
HB0765 amends Tennessee’s delinquent tax distribution statute to direct a specified share of remaining proceeds from delinquent tax collections toward property tax relief. Specifically, it adds a new category to the distribution formula in Tennessee Code Annotated § 67-5-2501, requiring that 10% of any remaining proceeds be used to provide tax relief for homeowners who are elderly low-income, disabled, or are disabled veterans or widows of disabled veterans, under the state’s existing tax relief program.
The bill is narrow in scope and does not create a new tax or change the delinquent tax collection process itself; instead, it reallocates a portion of funds already being distributed after delinquent tax collections. It takes effect July 1, 2025, and would affect the state’s tax relief funding stream and the eligible homeowner groups served by Tennessee’s property tax relief provisions.
Impact
The bill amends Title 67, Chapter 5 of the Tennessee Code by revising the statutory distribution of delinquent tax proceeds. Its practical effect is to earmark 10% of any remaining proceeds for the state’s property tax relief program, increasing the funding source for relief available to qualifying elderly low-income homeowners, disabled homeowners, disabled veterans, and widows of disabled veterans. Local and state entities involved in distributing delinquent tax proceeds would need to apply the new allocation beginning July 1, 2025.
Sentiment
The available legislative history suggests the bill was received favorably, at least at the subcommittee level, where it advanced by a unanimous 7-0 vote. No committee transcript is available, but the vote indicates broad support and little visible opposition in the recorded action. The bill’s focus on tax relief for vulnerable homeowners likely contributes to its positive reception.
Contention
There is little evidence of controversy in the available record. The main policy question is whether a fixed 10% share of remaining delinquent tax proceeds should be reserved for property tax relief rather than left for other uses in the distribution formula. Any concern would likely come from stakeholders affected by the reallocation of delinquent tax revenues, while supporters would include advocates for elderly, disabled, and veteran homeowners who benefit from expanded tax relief funding.