Tennessee House Bill HB1846

Tennessee 2025-2026 Regular Session

• Introduced: 1/21/26
• Refer: 2/2/26
• Refer: 2/11/26
• Refer: 2/17/26

Caption

AN ACT to amend Tennessee Code Annotated, Section 11-14-307; Section 11-14-406; Section 11-7-109; Title 66; Section 67-4-409; Title 67, Chapter 5, Part 10 and Section 67-5-2402, relative to rollback taxes.

Impact

One of the main impacts of HB1846 is the clear demarcation of responsibilities for landowners regarding their properties classified as agricultural, forest, or open space. The bill specifies that upon the sale or transfer of such properties, the new owner must submit a new application to maintain the land's classification. Notably, the bill removes liability for rollback taxes if the land is sold and its classification is not renewed, which may provide more financial security for buyers of such properties and potentially invigorate transactions in the state’s real estate market.

Summary

House Bill 1846 aims to amend various sections of the Tennessee Code Annotated related to rollback taxes applicable to agricultural, forest, or open space land. The bill proposes significant changes to the conditions under which properties are exempt from rollback taxes, which are taxes imposed when land that has been granted a special use is converted to a non-qualifying use. The alterations intend to clarify the responsibilities of property owners in maintaining their land's qualifying status under state law. This includes eliminating some specific conditions that previously triggered potential rollback taxes upon transfer of property.

Contention

Notable points of contention surrounding HB1846 include the implications for local governments' revenue and the potential impact on land conservation efforts in Tennessee. Critics have argued that easing the conditions related to rollback taxes could lead to an increased risk of land development that undermines agricultural and open space preservation efforts. Proponents, however, believe the changes will encourage the proper usage and better management of lands currently classified under state exemptions, thus benefiting the broader agricultural community.