Image Credit: Canva
The Tennessee Conservative [By Paula Gomes] –
A state lawmaker has filed a bill that would require all foreign purchases of land in Tennessee to be reported to the Commissioner of Agriculture. Failure to make the report could result in a civil penalty of twenty-five percent of the value of the land.
Representative Jay Reedy (R-Erin-District 74), is the sponsor of House Bill 0219 (HB0219).
The legislation would require that “foreign persons who purchase land in this state” who file a report of the purchase to the United States Department of Agriculture under the Agricultural Foreign Investment Disclosure Act to also file the report with the Commissioner of Agriculture within the same time period.
If a report is not filed, it would be the responsibility of the commissioner to notify the Attorney General who would then be authorized to impose a stiff civil penalty, as much as twenty-five percent of the fair market value of the land.
In 2023, Reedy sponsored House Bill 0040 which was signed into law by Governor Bill Lee.
This new law restricted foreign ownership of property within the borders of the state. Specifically, the legislation prohibits the purchase of Tennessee real estate by foreign entities and individuals if they reside in a country that is sanctioned by the United States government.
The following year, Reedy sponsored House Bill 2553 to amend the new law to specifically prohibit countries subject to the International Traffic in Arms Regulations from owning agricultural land in Tennessee. This includes China, Iran, and North Korea.
A suit was filed against the state last fall due to some believing the law would be retroactive, which it is not.
Two plaintiffs, investors of Walton Tennessee, claimed that foreign landowners would be required to sell or give up land they already owned. Walton owns interest in over 1,200 acres of land in the state.
One of the plaintiffs is an American who lives in China, and the other is an Italian citizen living in Hong Kong.
The Tennessee Attorney General’s Office argued last December that neither would be forced to divest ownership because of their respective claims of citizenship.
About the Author: Paula Gomes is a Tennessee resident and reporter for The Tennessee Conservative. You can reach Paula at paula@tennesseeconservativenews.com.
