All Roll Calls
Yes: 104 • No: 19
TennesseeSB 0539114th General Assembly (2025-2026)SenateWALLET
AN ACT to amend Tennessee Code Annotated, Title 7; Title 13; Title 48; Title 49; Title 67 and Title 68, relative to low-income housing.
Sponsored By: Sponsor information unavailable
Signed by Governor
Taxes, Real Property
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Bill Overview
Analyzed Economic Effects
3 provisions identified: 1 benefits, 1 costs, 1 mixed.
Lower property tax valuations for restricted rentals
In cities or counties that adopt this law, restricted multi-unit rentals are valued for property tax using net operating income. Assessors must use actual income and stabilized expenses, follow appraisal standards for projections, adjust value for rent limits using the ratio of restricted to market rents, and exclude low-income housing tax credits from value. The cap rate must reflect restricted-housing risks, be at least the rate for unrestricted apartments, and be 50 to 150 basis points (0.50 to 1.50 percentage points) above the latest national multifamily average from realtyrates.com (or its successor). Beginning with tax year 2026, the state sets, in consultation with the housing agency, and posts the yearly cap-rate range for assessors. These rules apply to residential properties and projects developed on or after July 1, 2026.
New filing rules and penalties for owners
Beginning July 1, 2026, owners must notify the property assessor in writing by December 31 of the year when a property becomes restricted, stops being restricted, or a foreclosure action starts. Use the state form and file the information needed for assessment. If you miss the deadline, you owe delinquent property taxes, plus interest and penalties. This duty applies only in cities or counties that adopt the section.
Which rental properties qualify for relief
The law explains which properties qualify for the special valuation. A 'government restriction on use' includes units tied to low-income housing tax credits, exempt facility bonds, specified low-interest federal loans, rent subsidies, guaranteed loans, grants, guarantees, or payment-in-lieu-of-taxes deals. A 'multi-unit rental housing' project has four or more units; assisted living does not count. Duplexes or single-family homes are out unless they are commercial property or part of a larger restricted property. 'Low-income' means tenants earn at or below 80% of the HUD area median income for that location. These definitions apply only in adopting localities and to residential properties and projects developed on or after July 1, 2026.
Sponsors & Cosponsors
Sponsors
There is no primary sponsor on record.
Cosponsors
Paul Bailey
Republican • Senate
Reeves
Affiliation unavailable
Roll Call Votes
Senate vote • 4/22/2026
FLOOR VOTE: as Amended Third Consideration 4/22/2026
Yes: 30 • No: 0
House vote • 4/22/2026
FLOOR VOTE: REGULAR CALENDAR PASSAGE ON THIRD CONSIDERATION 4/22/2026
Yes: 69 • No: 15
Senate vote • 3/25/2026
SENATE STATE & LOCAL GOVERNMENT COMMITTEE
Yes: 5 • No: 4
Actions Timeline
Effective date(s) 05/22/2026, 07/01/2026
5/27/2026Pub. Ch. 1053
5/27/2026Signed by Governor.
5/22/2026SenateTransmitted to Governor for action.
5/11/2026SenateSigned by H. Speaker
5/7/2026HouseSigned by Senate Speaker
4/30/2026SenateEnrolled and ready for signatures
4/29/2026SenateSponsor(s) Added.
4/24/2026SenatePassed H., Ayes 69, Nays 15, PNV 7
4/22/2026HouseAm. withdrawn. (Amendment 1 - HA1162)
4/22/2026HouseSubst. for comp. HB.
4/22/2026HouseEngrossed; ready for transmission to House
4/22/2026SenatePassed Senate as amended, Ayes 30, Nays 0
4/22/2026SenateSenate adopted Amendment (Amendment 1 - SA0869)
4/22/2026SenatePlaced on Senate Regular Calendar for 4/22/2026
4/21/2026SenateRecommended for passage with amendment/s, refer to Senate Calendar Committee Ayes 5, Nays 4 PNV 0
3/25/2026SenatePlaced on Senate State and Local Government Committee calendar for 3/25/2026
3/25/2026SenatePlaced on Senate State and Local Government Committee calendar for 3/25/2026
3/24/2026SenateAction deferred in Senate State and Local Government Committee to 3/25/2026
3/24/2026SenatePlaced on Senate State and Local Government Committee calendar for 3/24/2026
3/18/2026SenateAction deferred in Senate State and Local Government Committee to 3/24/2026
3/17/2026SenatePlaced on Senate State and Local Government Committee calendar for 3/17/2026
3/11/2026SenateAssigned to General Subcommittee of Senate State and Local Government Committee
3/11/2025SenatePlaced on Senate State and Local Government Committee calendar for 3/11/2025
3/4/2025SenateSponsor(s) Added.
2/28/2025Senate
Bill Text
Enrolled / Public Chapter
Fiscal Note
HA1162
Introduced
SA0869
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