Tennessee Senate Bill SB1326

Tennessee 2025-2026 Regular Session

• Introduced: 2/6/25
• Failed: 4/1/25
• Engrossed: 2/26/26
• Enrolled: 4/29/26
• Passed: 5/22/26
• Chaptered: 5/27/26

Caption

AN ACT to amend Tennessee Code Annotated, Title 67, Chapter 5, Part 7, relative to property tax relief for elderly persons.

Summary

SB1326 amends Tennessee’s property tax relief program for elderly homeowners by creating a simplified reapplication process for certain applicants age 80 or older. If an applicant has received property tax relief for the same residence for the immediately preceding five consecutive years, or has been a co-owner of the same parcel for five consecutive years while another co-owner received relief, the collecting official or property assessment division would no longer be required to request income-verification documents, so long as the applicant’s attributable income remains within the program’s annual threshold and all other non-income eligibility requirements are met. The bill also preserves annual participation requirements. Even when income documentation is waived under the new provision, eligible applicants must still file the yearly tax relief application, and the state property assessment division must create a simplified renewal form that allows applicants to attest to income and non-income eligibility by checking boxes. The measure is aimed at reducing administrative burden for long-term elderly participants while keeping the core eligibility standards in place.

Impact

The bill amends Tennessee Code Annotated, Title 67, Chapter 5, Part 7, specifically Section 67-5-702, by adding a new subsection that limits when income documentation may be required for certain elderly property tax relief applicants. It affects county collecting officials and the Division of Property Assessments by reducing verification duties for a defined group of senior applicants, while still allowing requests for documentation related to other household income or non-income eligibility criteria. The bill does not change the underlying income threshold or general eligibility rules, but it does require the state to develop a streamlined reapplication process.

Sentiment

Overall sentiment appears strongly favorable by the time of final passage, with unanimous or near-unanimous support in later committee and floor votes. The bill initially failed in the Senate State and Local Government Committee, but after amendment it advanced unanimously through committee and passed both chambers without opposition on the recorded votes provided. That pattern suggests the proposal was ultimately viewed as a practical administrative simplification for elderly taxpayers rather than a controversial policy change.

Contention

The main point of contention appears to have been whether the state should relax documentation requirements for property tax relief applicants, balancing administrative convenience against the need to verify eligibility and prevent improper claims. The initial committee failure indicates some early concern about reducing oversight or creating exceptions in the tax relief process. Those concerns were apparently addressed through amendment, since later votes were unanimous and the final version still preserved annual application requirements and allowed officials to request other relevant documentation.