Tennessee House Bill HB0766

Tennessee 2025-2026 Regular Session

• Introduced: 2/4/25
• Refer: 2/6/25
• Refer: 3/12/25

Caption

AN ACT to amend Tennessee Code Annotated, Title 67, Chapter 5, relative to property tax.

Summary

HB0766 amends Tennessee’s property tax law to add a new 5% penalty when a suit is filed to enforce a tax lien against real or personal property. The added penalty applies to delinquent taxes owed to the state, county, or municipality, and it is calculated only on the base amount of delinquent taxes, excluding accrued interest and other penalties. The bill directs the revenue from this additional penalty to tax relief programs for certain homeowners, specifically elderly low-income homeowners, disabled homeowners, disabled veterans, and widows of disabled veterans under existing law. It takes effect July 1, 2025.

Impact

The bill would modify Tennessee Code Annotated, Title 67, Chapter 5, Section 67-5-2410 by creating a new penalty tied to tax-lien enforcement actions and by earmarking that revenue for property tax relief under part 7 of the chapter. Its practical effect is to increase the cost of delinquent property tax enforcement while providing an additional funding source for existing homeowner relief programs benefiting elderly, disabled, and veteran-related households.

Sentiment

The available voting history suggests the bill was received favorably in committee, with the House Cities & Counties Subcommittee recommending passage by a 7-0 vote. No committee transcript is available, but the unanimous vote indicates broad support at the subcommittee stage and no recorded opposition in the provided materials.

Contention

No specific objections are documented in the provided record. The main policy issue implicit in the bill is the balance between imposing an added penalty on delinquent taxpayers subject to tax-lien suits and using that revenue to support targeted property tax relief for vulnerable homeowners. Any contention would likely center on whether the new penalty is an appropriate enforcement tool and whether the revenue should be dedicated to these relief programs.