A Resolution requesting the Davidson County Delegation to the Tennessee General Assembly to support the adoption of legislation SB1235/HB0295 that would enable local governments to impose real estate transfer taxes.

WHEREAS, the Metropolitan Government is limited primarily to property and sales taxes as major sources of revenue; and

WHEREAS, the Metropolitan Government should be seeking measures to broaden the local tax base to give a reduction in the amount of property and sales taxes needed in the future; and

WHEREAS, government officials at all levels are acutely aware of the erosion of the sales tax revenues by catalog and internet sales, which will put more pressure on the property tax in funding government services; and

WHEREAS, a growing number of households living on fixed incomes are concerned about the likelihood of future increases in property and/or sales taxes to fund the level of services our community desires and needs; and

WHEREAS, state law presently imposes a tax on the transfer of real estate which is collected when deeds and other instruments conveying an interest in real property are recorded with the register of deeds in the various counties; and

WHEREAS, SB1235/HB0295, sponsored by Senator Jerry Cooper and Representative Tommy Head, would enable local governments to impose a local real estate transfer tax; and

WHEREAS, SB1235/HB0295 are currently in committees of the General Assembly and are supported by the Tennessee County Services Association, as well as a large group of other statewide organizations; and

WHEREAS, the pending state legislation is permissive and would not levy any tax, but would merely authorize local governments to levy a transfer tax at such time it is deemed to be in their best interest to gain additional revenue, which can only be applied to the school debt fund for school construction and renovation; and

WHEREAS, two amendments to the proposed state legislation exempt low income first-time homebuyers from any such local real estate transfer tax and limit the tax to a rate not to exceed the rate of the current state transfer tax; and

WHEREAS, pursuant to the proposed state legislation, local governments would be required to adopt by two-thirds majority on two consecutive meetings any legislation imposing a local real estate transfer tax.

NOW, THEREFORE, BE IT RESOLVED BY THE COUNCIL OF THE METROPOLITAN GOVERNMENT OF NASHVILLE AND DAVIDSON COUNTY:

SECTION 1. That the Metropolitan County Council hereby goes on record as requesting the Davidson County Delegation to the Tennessee General Assembly to support the adoption of legislation SB1235/HB0295 that would enable local governments to impose real estate transfer taxes.

SECTION 2. That an ad hoc committee of seven members of the Metropolitan Council who support this Resolution be formed to request an appearance at a meeting of the Davidson County Delegation in order to testify to the rationale for the support of the enabling legislation. Such committee members are to be appointed by the Vice Mayor within two weeks of the adoption of this Resolution.

SECTION 3. That the Metropolitan Clerk is directed to send a certified copy of this Resolution to each member of the Davidson County Delegation to the Tennessee General Assembly.

SECTION 4. That this Resolution shall take effect from and after its adoption, the welfare of the Metropolitan Government of Nashville and Davidson County requiring it.

Sponsored By: Bob Bogen