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SB 774

Taxes, Ad Valorem - As introduced, adds a 5 percent penalty on delinquent property taxes with the penalty to be used to provide tax relief for the homeowners who are elderly low-income, disabled, or a disabled veteran or widow of a disabled veteran. - Amends TCA Title 67, Chapter 5.

114th Regular Session (2025-2026) Introduced by Richard Briggs

Tennessee bill adds 5% penalty on late property taxes with revenue funding relief programs for elderly, low-income, disabled, and veteran homeowners.

Passed on Second Consideration, refer to Senate State and Local Government Committee
#advalorem #taxes
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WeVote Research Nonpartisan
Bill Summary · SB 774

Legislative bill overview

SB 774 creates a 5 percent penalty on delinquent property taxes in Tennessee, with the collected penalty revenue dedicated to providing tax relief for elderly, low-income, disabled, and disabled veteran homeowners. The bill amends Tennessee's property tax code to establish both a financial disincentive for late tax payments and a funding mechanism for targeted tax assistance programs.

Why is this important

Delinquent property taxes reduce local government revenue needed for schools, infrastructure, and services. Simultaneously, property tax burdens can be especially difficult for fixed-income elderly and disabled households. This bill attempts to address both issues by creating a revenue source specifically designated to help vulnerable homeowners while incentivizing timely tax payment across the broader population.

Potential points of contention

  • Regressive impact concern: The 5 percent penalty on delinquent taxes may disproportionately harm lower-income households who miss payments due to financial hardship rather than negligence, potentially worsening their situation before relief programs reach them
  • Revenue adequacy: Unclear whether penalty collections will generate sufficient funds to meaningfully help eligible households, or if the program will face perpetual underfunding
  • Program administration details: The bill lacks specifics on eligibility verification, relief amount formulas, and how local tax assessors will determine and distribute benefits, creating implementation uncertainty

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

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