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SB 2054

Taxes, Real Property - As introduced, increases exemption to a maximum of 400 acres for certain nonprofit entities. - Amends TCA Section 67-5-212.

114th Regular Session (2025-2026) Introduced by Ken Yager

Tennessee bill increases nonprofit property tax exemption to 400 acres maximum, reducing local tax revenue while expanding tax-exempt land holdings for qualifying organizations.

Senate adopted Amendment (Amendment 1 - SA0624)
#realproperty #taxes
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WeVote Research Nonpartisan
Bill Summary · SB 2054

Legislative bill overview

SB 2054 amends Tennessee tax law to increase the property tax exemption ceiling for certain nonprofit entities from an unspecified lower amount to a maximum of 400 acres. The bill modifies TCA Section 67-5-212, which governs tax exemptions for nonprofit organizations' real property holdings.

Why is this important

Property tax exemptions directly reduce tax revenue available to local governments while benefiting qualifying nonprofits. This expansion potentially allows nonprofits to hold significantly more tax-exempt land, affecting municipal budgets and property tax burdens on remaining taxpayers while expanding benefits to qualifying charitable, educational, or religious organizations.

Potential points of contention

  • Municipal revenue impact: Local governments may lose tax revenue from properties up to 400 acres per nonprofit, potentially shifting tax burdens to other property owners
  • Scope of "certain nonprofit entities": The bill's language doesn't specify which types of nonprofits qualify, raising questions about whether this broadly benefits all nonprofits or targets specific categories
  • Land accumulation concerns: The 400-acre threshold could allow large-scale property consolidation by nonprofits, potentially affecting housing availability and community land use patterns

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

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