WeVote
Log In

Bill

Bill

HB 297

Real Property - As enacted, clarifies that property that is qualified as agricultural, forest land, or open space land, owned by two individuals, and held under the titles of tenancy by the entireties or of joint tenancy with right of survivorship, is deemed to have unchanged ownership upon the death of an owner if the property is retained by the other owner through a right of survivorship or upon the divorce of the owners if the property is retained by either owner through division and distribution of property in the divorce proceeding. - Amends TCA Title 11, Chapter 14, Part 2; Title 11, Chapter 15 and Title 67, Chapter 5.

114th Regular Session (2025-2026) Introduced by William Lamberth

Tennessee law now preserves tax-qualified status for jointly-owned agricultural land transferred via survivorship or divorce, preventing reassessment and tax increases.

Pub. Ch. 138
#realproperty
0
WeVote Research Nonpartisan
Bill Summary · HB 297

Legislative bill overview

HB 297 clarifies Tennessee property tax treatment for agricultural, forest, and open space land owned jointly by two individuals. The bill specifies that when such property passes to a surviving joint owner through right of survivorship, or is divided between divorcing owners, it maintains its qualified agricultural/forest/open space status without triggering a reassessment as a change of ownership.

Why is this important

Agricultural and forest land in Tennessee receives preferential tax assessment rates (significantly lower than market value) to encourage preservation. Without this clarification, surviving spouses or divorced parties could face sudden property tax increases if the transfer were treated as a new ownership event requiring revaluation. This bill protects landowners from unexpected tax burdens during vulnerable life transitions.

Potential points of contention

  • Scope of beneficiaries: The law applies only to two-person joint ownership; unclear how it addresses multi-generational family trusts or larger land partnerships that may also preserve agricultural use
  • Divorce outcomes: Property division in divorce could theoretically be used to circumvent tax reassessment in ways the original intent didn't address, depending on how aggressively it's applied
  • Revenue impact: Counties lose potential tax revenue from reassessments; rural counties dependent on property tax may face budget pressure if widespread agricultural holdings transfer hands

Compiled from official sources — confirm details with the bill’s official record.

Sign in to ask a question.