Tennessee Senate Bill SB2719

Tennessee 2025-2026 Regular Session

• Introduced: 3/5/26
• Chaptered: 5/1/26
• Passed: 5/1/26

Caption

AN ACT to amend Chapter 213 of the Private Acts of 1982; and any other acts amendatory thereto, relative to the Unicoi County mineral tax.

Impact

The impact of SB2719 on state laws includes the formalization of the mineral taxation process within Unicoi County, allowing for potentially increased revenue from mineral extraction. This legal framework places a lien on the mineral products severed from the earth, ensuring that tax obligations take precedence over other liens or encumbrances. Local government bodies will now have structured authority to set and adjust tax rates within the parameters outlined by the bill, which may enhance local revenue-generation efforts and facilitate budget management.

Summary

Senate Bill 2719 proposes amendments to Chapter 213 of the Private Acts of 1982 concerning the mineral tax in Unicoi County. The bill outlines a structured tax schedule on minerals such as sand, gravel, sandstone, chert, or limestone that are extracted from the ground. The proposed tax rates vary depending on the tax periods, increasing from 15 cents per ton for periods beginning before July 1, 2025, to 30 cents per ton for periods starting after July 1, 2035. Additionally, it establishes that the tax will apply to the total production in the county regardless of where the minerals are sold, asserting a significant financial obligation for mineral owners in the region.

Contention

While the bill aims to streamline tax processes and enhance local governance over mineral extraction operations, there may be contention surrounding the implications of the tax increases on local businesses and residents. Stakeholders might raise concerns about the economic burden this may impose on mineral producers, particularly smaller entities. Additionally, discussions regarding how these changes could affect land use and other regulatory frameworks that intersect with mineral extraction could emerge, particularly from groups advocating for environmental protections or local economic sustainability.