AN ACT to amend Tennessee Code Annotated, Section 67-5-212, relative to property tax exemptions.
Summary
SB2054 amends Tennessee’s property tax exemption statute to place a specific acreage cap on a nonprofit entity that owns or operates a “premier type tourist resort.” Under current law, certain nonprofit-owned property may qualify for exemption from property taxes; this bill clarifies that, for this category of resort property, the exemption cannot exceed 400 acres. The measure is narrowly targeted and does not broadly change the state’s property tax exemption framework, but instead adds a limitation tied to a particular type of nonprofit tourism operation.
The bill’s practical effect is to limit the amount of land that can receive property tax exemption when a nonprofit owns or operates a qualifying premier tourist resort under the referenced tourism statute. That means county and local tax authorities would continue to administer exemptions under Tennessee Code Annotated Section 67-5-212, but with an added restriction for this specific class of property. Nonprofit resort operators with larger landholdings would likely see part of their property remain taxable if it exceeds the 400-acre cap.
Impact
SB2054 amends Tennessee Code Annotated Section 67-5-212 by adding a new limitation to the property tax exemption for nonprofit entities operating premier type tourist resorts. The bill affects nonprofit resort owners, local property tax assessors, and county governments by narrowing the scope of exempt acreage to 400 acres for that category of property. It does not eliminate the exemption, but it reduces the amount of land that can qualify under the statute.
Sentiment
The available voting history suggests the bill was received favorably and with little opposition. It passed the Senate State & Local Government Committee unanimously 9-0 with an amendment and then passed the Senate floor 30-0 on third consideration as amended. No committee transcript is available, but the unanimous votes indicate broad support and no recorded dissent in the available materials.
Contention
No specific objections are documented in the provided materials, but the likely point of contention is the balance between preserving tax exemptions for nonprofit tourism development and ensuring that large resort properties do not receive overly broad property tax relief. Any debate would likely center on whether 400 acres is the appropriate cap and whether the limitation could affect nonprofit economic development or tourism projects. The unanimous votes suggest that, whatever concerns may have existed, they did not generate visible opposition in committee or on the floor.