Zoning - As introduced, requires, on and after July 1, 2025, a deed of conveyance of real property to include the zoning classification of the property at the time the deed is recorded; prescribes a process by which a local zoning authority may notify a state department, agency, or officer of a local zoning violation by a business resulting in the revocation or suspension of a license, permit, or certificate of a business in violation of a local zoning ordinance, resolution, or law; prescribes the process for reinstatement or appeal, including the assessment of a reinstatement fee. - Amends TCA Title 4; Title 5; Title 6; Title 7; Title 8, Chapter 13; Title 13, Chapter 7; Title 62; Title 66 and Title 68.

114th Regular Session (2025-2026) Introduced by Tom Hatcher

Tennessee bill requiring zoning classification on property deeds and authorizing local zoning authorities to trigger state business license suspension for zoning violations, effective July 2025.

Passed on Second Consideration, refer to Senate State and Local Government Committee

#zoning

Legislative bill overview

SB 847 requires that property deed documents include the zoning classification at the time of recording (effective July 1, 2025). It also establishes a formal process allowing local zoning authorities to notify state departments when businesses violate zoning ordinances, potentially leading to suspension or revocation of state licenses, permits, or certificates, with provisions for reinstatement appeals and associated fees.

Why is this important

This bill affects property transactions by adding zoning transparency requirements, which could reduce disputes about property use after purchase. It also strengthens local zoning enforcement by creating a direct mechanism to leverage state licensing authority as a compliance tool, potentially making zoning violations more costly for businesses.

Potential points of contention

Disclosure burden on sellers/title companies: Adding zoning classification to every deed creates an administrative requirement that could delay closings or increase transaction costs if compliance procedures aren't streamlined

State agency coordination complexity: The bill amends eight different Tennessee Title sections, suggesting significant coordination challenges between local zoning authorities and multiple state departments—implementation feasibility and cost-sharing unclear

Appeal rights and due process: The reinstatement fee structure and appeal process language may raise concerns about whether businesses have adequate procedural protections before losing state-issued licenses based on local zoning violations