AN ACT to amend Tennessee Code Annotated, Title 67, Chapter 5, relative to delinquent taxes.
Summary
SB0775 amends Tennessee’s delinquent tax distribution statute to direct a portion of remaining proceeds from delinquent tax sales or collections toward property tax relief. Specifically, it adds a new requirement that 10% of any remaining proceeds be used to provide tax relief for qualifying homeowners who are elderly low-income, disabled, disabled veterans, or widows of disabled veterans under existing property tax relief provisions in Title 67, Chapter 5.
The bill does not create a new tax relief program; rather, it changes how certain delinquent tax proceeds are allocated after other required distributions. Its practical effect is to earmark a share of those funds for an existing class of vulnerable homeowners who already qualify for relief under Tennessee law. The measure is set to take effect July 1, 2025.
Impact
The bill amends Tennessee Code Annotated, Section 67-5-2501(a)(3)(A), by adding a new distribution category for delinquent tax proceeds. This changes state law governing the use of leftover proceeds from delinquent tax collections and requires local or state administrators handling those funds to reserve 10% for property tax relief purposes. The affected parties are qualifying homeowners who are elderly and low-income, disabled individuals, disabled veterans, and widows of disabled veterans, as well as the entities responsible for distributing delinquent tax proceeds.
Sentiment
Based on the bill text and the absence of recorded committee debate or votes in the provided materials, the measure appears straightforward and likely noncontroversial in concept. Its purpose is framed as supporting property tax relief for vulnerable homeowners, suggesting a generally favorable policy intent. No opposing arguments or amendments are reflected in the available record.
Contention
No specific contention is documented in the provided committee transcripts or voting history, as none were supplied. Potential areas of concern, if raised, would likely involve whether diverting 10% of remaining delinquent tax proceeds reduces funds available for other statutory uses or local priorities. However, the available materials do not show any identified opponents, disputed provisions, or recorded debate over the allocation change.