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HB 95

Taxes, Real Property - As introduced, requires half the revenue collected from recordation taxes be returned to the county in which the real property is located on a recurring basis; applies to transfers of real property on or after July 1, 2025. - Amends TCA Section 67-4-409.

114th Regular Session (2025-2026) Introduced by Johnny Shaw

HB 95 redirects 50% of state recordation tax revenue to counties where properties are transferred, beginning July 1, 2025, shifting state funds to local governments.

Assigned to s/c Cities & Counties Subcommittee
#realproperty #taxes
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Bill Summary · HB 95

Legislative bill overview

HB 95 requires that half of all recordation tax revenue collected from real property transfers be returned directly to the county where the property is located, effective July 1, 2025. Currently, recordation taxes flow to the state, and this bill would create a recurring revenue-sharing mechanism that diverts a portion back to local governments.

Why is this important

Counties depend on property transfer revenue for local services, and this bill would redirect state funds to county budgets without raising taxes. However, it also reduces state revenue available for statewide priorities, representing a significant shift in fiscal distribution between state and local government levels.

Potential points of contention

  • State budget impact: The bill diverts an estimated significant portion of state recordation tax revenue; opponents may argue this undermines state funding for education, healthcare, or infrastructure without identifying replacement revenue
  • County disparity effects: Wealthy counties with high property values would receive substantially more revenue than rural or lower-income counties, potentially widening fiscal inequalities between jurisdictions
  • Implementation and administration: Counties would need systems to track and receive recurring payments; the bill's language on distribution mechanics and timing during the transition period may create administrative challenges

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

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