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SB 1080

Taxes - As introduced, requires 50 percent of collections of the recordation tax levied on transfers of realty to be remitted to each county; requires counties to use such funds for transportation infrastructure, schools, and other nonrecurring expenses. - Amends TCA Section 67-4-409.

114th Regular Session (2025-2026)

Redirects 50% of Tennessee's recordation tax revenue to counties for transportation, schools, and nonrecurring expenses, reducing state funds available for other programs.

Placed on Senate Finance, Ways, and Means Committee calendar for 4/20/2026
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Bill Summary · SB 1080

Legislative bill overview

SB 1080 requires Tennessee to redirect 50 percent of recordation tax revenue (taxes collected when real estate transfers ownership) from the state to individual counties. Counties would be required to use these funds specifically for transportation infrastructure, schools, and other nonrecurring expenses rather than ongoing operational costs.

Why is this important

This bill directly affects how Tennessee funds local services. Currently, the state retains recordation tax revenue; this change would shift roughly half of that revenue stream to counties, potentially providing new funding for infrastructure and education but reducing state revenues available for other programs. The outcome depends heavily on whether counties receive enough funding to meaningfully address needs or whether the redistribution creates fiscal pressure elsewhere.

Potential points of contention

  • State budget impact: Redirecting 50 percent of recordation tax revenue reduces state income, requiring either budget cuts in state programs, new revenue sources, or spending reallocation
  • Equity across counties: Counties vary significantly in real estate transaction volume; wealthier counties with more property transfers would receive substantially more funds than rural counties, potentially widening regional disparities
  • Spending restrictions: Limiting county use to infrastructure, schools, and nonrecurring expenses may not align with each county's actual priorities or fiscal needs, reducing local flexibility

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

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