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HB 319

Taxes, Ad Valorem - As introduced, revises the definition of "residential property" for purposes of classification and assessment of property taxes to include property that can be sold and purchased as a single unit fee simple title, regardless of whether it is vacant, owner-occupied, rented, or detached or attached. - Amends TCA Title 67, Chapter 5.

114th Regular Session (2025-2026) Introduced by Tim Rudd

Expands Tennessee's residential property tax definition to include any single-unit fee simple property regardless of occupancy or structure type, potentially lowering taxes for rental and vacant properties.

Def. to Summer Study in Cities & Counties Subcommittee
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Bill Summary · HB 319

Legislative bill overview

HB 319 broadens Tennessee's definition of "residential property" for property tax classification to include any property that can be sold as a single unit with fee simple title, eliminating distinctions based on occupancy status (vacant, owner-occupied, rented) or physical structure (detached or attached). This expands which properties qualify for residential property tax treatment rather than commercial rates.

Why is this important

Property tax classification directly affects tax rates and assessment values—residential properties typically receive more favorable tax treatment than commercial properties. This change could reclassify properties currently taxed at higher commercial rates into the residential category, potentially lowering taxes for property owners while reducing local government revenue. The definition change may have significant implications for rental properties, mixed-use buildings, and vacant land that developers intend to build on.

Potential points of contention

  • Revenue impact on municipalities: Cities and counties depend on property tax revenue; reclassifying commercial/rental properties as residential could reduce local funding for schools, services, and infrastructure
  • Fairness concerns: Property owners with identical properties could face different tax rates depending on current use or occupancy status, raising questions about equitable taxation
  • Definitional ambiguity: "Can be sold...as a single unit" may create disputes over property divisions, condominiums, and multi-tenant buildings that could be subdivided

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

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