VITAL POLICY – Senator Jessie Seal Urges Support for SB 1080, Potentially Over Six Million Dollars of Additional Revenue for District Eight
County governments in the 8th Senate District could get a financial shot in the arm if proposed legislation is enacted to return 50% of the Real Estate Transfer Tax to county governments where the tax is generated.
When real estate ownership is transferred and the deed is recorded at the Register of Deeds Office in each county, a fee of thirty-seven cents per hundred dollars is collected by the registrar’s office and submitted to the state coffers, less a small percentage that is kept by the registrar for administrative costs.
The 8th Senate District, represented by Senator Jessie Seal (R-Tazwell), would derive over six million dollars per year of extra revenue for roads, debt service, and capital improvements if Senate Bill 1080 / House Bill 649 were to be enacted as written and real estate sales remain level.
The real Estate Transfer Tax is expected to increase statewide by just under six percent in the next fiscal year according to the Fiscal Review Note that accompanies the proposed legislation.
A county-by-county breakdown of the amounts that could be realized annually by each of the counties that Seal represents are as follows.
Claiborne: $297,054
Grainger: $324,493
Hancock: $58,363
Jefferson: $949,595
Sevier: $4,249,202
Union: $332,180
Total: $6,210,894
For background information on the issue, a link is provided here to the Tennessee Conservative News. Tennessee Real Estate Transfer Tax Legislation Could Mean Extra Revenue For County Governments | Tennessee Conservative
The article linked above features a chart that shows the annual Real Estate Transfer Tax revenue for each county in Tennessee, 50% of which the proposed legislation would return to each county.
Senator Seal’s letter to the Senate Budget Committee Chair is pictured below.
In Jefferson County, Mayor Mark Potts supported the legislation by sending a letter to Governor Lee and the Tennessee State Funding Board urging that funding for the bill be included in the Governor’s Annual Budget Proposal. Most legislators concur that inclusion in the governor’s budget would give SB 1080 / HB 649 a very good chance of passage.
A link to coverage of Mayor Potts letter is linked below.
David Seal is a retired Jefferson County educator, recognized artist, local businessman, 917 Society Volunteer, and Immediate 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 a columnist for the Jefferson County Post and a staff writer for the Tennessee Conservative News.
