Tennessee Senate Bill SB0774

Tennessee 2025-2026 Regular Session

• Introduced: 2/4/25

Caption

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

Summary

SB0774 amends Tennessee property tax law to add an extra 5% penalty when a suit is filed to enforce a tax lien against real or personal property. The new penalty applies to delinquent taxes owed to the state, county, or municipality, and it is calculated only on the base delinquent tax amount, not on accrued interest or 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 property tax relief provisions. The act is set to take effect on July 1, 2025.

Impact

The bill would amend Tennessee Code Annotated, Title 67, Chapter 5, Section 67-5-2410 by creating a new 5% penalty tied to tax-lien enforcement suits and earmarking that revenue for property tax relief. It would affect delinquent property owners subject to lien enforcement actions and would increase funds available for the state’s existing tax relief program for qualifying homeowners.

Sentiment

No committee transcripts or recorded votes were provided, so there is no direct evidence of debate or opposition in the available materials. Based on the bill text, the measure appears to be framed as a revenue-generating enforcement tool paired with targeted relief for vulnerable homeowners, suggesting a policy rationale that may attract support from those favoring property tax relief and collection enforcement.

Contention

The main policy tension is between strengthening delinquent tax enforcement through an added penalty and ensuring that the proceeds are dedicated to relief for elderly, disabled, and veteran-related homeowner categories. Potential concerns could include the burden on delinquent taxpayers facing lien suits and whether the additional penalty is an appropriate mechanism for funding tax relief, but no specific objections are documented in the provided record.