Citizens Have Role To Play Advocating For Legislation
Image Credit: TN General Assembly
The Tennessee Conservative [By David Seal] –
Representative Monty Fritts (R-Kingston) has opined in a letter to Governor Bill Lee that 100% of the Real Estate Transfer Tax that is collected at the local level should go to county government.
Under current law, nearly all the revenue goes to the state coffers.
Each time a property owner registers a deed at the local level, they are charged thirty-seven cents per one hundred dollars of the amount paid for the property. The proceeds of that fee are generated at the local level by local taxpayers, but all of the money, except for a tiny percentage designated for administrative costs, goes to the state.
Fritts understands that local county governments can do a better job of directing the use of revenue than state government. That is why he and other legislators support a bill to return 50% of the revenue to local coffers. The bill, as written, differs from Fritts’ opinion that all the proceeds from the tax should go to local county governments.
Since he has been in office, Fritts has advocated for greater local decision making and cooperation between municipal and county governments, expressed most recently in proposed legislation that places checks and balances on annexation. HB 2419 would require a city government to provide the county government to which it proposes annexation, to provide a fiscal and economic impact analysis to the county so that services can be planned.
The companion senate bill, SB 2311 is on the Senate State and Local GovernmentCommittee for a hearing on March 17, 2026. The house bill is on the House State and Local Government Committee for March 18, 2026, having passed the subcommittee on March 4, 2026.
Currently, the bill to return a portion of the Real Estate Transfer Tax to local county governments is in the Finance Committee of both chambers. SB 1080 by Senator Jack Johnson (R-Franklin) and HB 649 by Representative Pat Marsh (R-Shelbyville) are pending based on available funding. If the bill were enacted as written, it would return just over $141,000,000 to local county governments based on the amount of Real Estate Transfer Tax revenue that each county collects annually. Citizens have a role to play in persuading legislators to fund and enact SB 1080 / HB 649.
For a detailed description of the fiscal impact of the bill, a link is provided here.
To see a full breakdown of the amount of Real Estate Transfer Tax that each county in Tennessee would receive, a spreadsheet is linked here. Reference the column labeled 50% to see the calculated value for each county.
During the past few months, county mayors across Tennessee have been appealing to Governor Lee to include funding for SB 1080 / HB 649 in his proposed fiscal year budget. One of the mayors that made a formal request was Jefferson County Mayor Mark Potts. His leadership on this issue has inspired other county mayors to join the effort to bring this important funding back to the county level where the tax revenue is generated.
Potts’ efforts have been reinforced by multiple county governments that have made formal resolutions asking the legislature and governor to prioritize funding for the same. County commissioners in multiple counties have stated that this has been a statewide effort, mainly because officials believe the funds generated by the tax are better used by local governments. For decades, the Real Estate Transfer Tax revenue has been placed in the state coffers with only a small percentage retained by the local register of deeds office to cover administrative costs.
State legislators have weighed in on the effort as well over the past year. SB 1080 sponsored by Senator Johnson has 10 of 33 senators as co-sponsors. The house companion bill HB 649, sponsored by Representative Marsh, has 30 of 99 house members as co-sponsors. The bill is a bipartisan effort.
Representative Elaine Davis (R-Knoxville) was one of the first legislators to join the letter writing campaign to Governor Lee and members of leadership.
A copy of Fritts’ letter is provided below.
If you would like to express your opinion on bringing a portion of the Real Estate Transfer Tax revenue back to your county. The names and contact information for the House Finance, Ways, and Means Subcommittee and the Senate Finance, Ways, and Means Committee are provided below.
House Finance, Ways, and Means Subcommittee – HB0649 hearing date TBD
HB0649 requires 50 percent of collections of the recordation tax levied on transfers of realty to be remitted to each county; requires counties to use such funds for transportation infrastructure, schools, and other nonrecurring expenses.
Rep.ryan.williams@capitol.tn.gov; rep.kip.capley@capitol.tn.gov; rep.jesse.chism@capitol.tn.gov; rep.mark.cochran@capitol.tn.gov; rep.john.crawford@capitol.tn.gov; rep.ron.gant@capitol.tn.gov; rep.john.gillespie@capitol.tn.gov; rep.gary.hicks@capitol.tn.gov; rep.tim.hicks@capitol.tn.gov; rep.antonio.parkinson@capitol.tn.gov; rep.lee.reeves@capitol.tn.gov; rep.johnny.shaw@capitol.tn.gov; rep.jason.zachary@capitol.tn.gov
Senate Finance, Ways, and Means Committee – SB1080 hearing date TBD
SB1080 requires 50 percent of collections of the recordation tax levied on transfers of realty to be remitted to each county; requires counties to use such funds for transportation infrastructure, schools, and other nonrecurring expenses.
Sen.bo.watson@capitol.tn.gov; sen.john.stevens@capitol.tn.gov; sen.joey.hensley@capitol.tn.gov; sen.ferrell.haile@capitol.tn.gov; sen.jack.johnson@capitol.tn.gov; sen.london.lamar@capitol.tn.gov; sen.bill.powers@capitol.tn.gov; sen.paul.rose@capitol.tn.gov; sen.page.walley@capitol.tn.gov; sen.ken.yager@capitol.tn.gov; sen.jeff.yarbro@capitol.tn.gov
About the Author: David Seal is a retired Jefferson County educator, recognized artist, local businessman, 917 Society Volunteer, and past Chairman of the Jefferson County Republican Party. He has also served Jefferson County as a County Commissioner and is a citizen lobbyist for the people on issues such as eminent domain, property rights, education, and broadband accessibility on the state level. David is also a 2024 winner of The Tennessee Conservative Flame Award & has received an accolade from the Institute For Justice for successfully lobbing the TN legislature to protect property rights. David can be reached at david@tennesseeconservativenews.com.
