TN SB2416

Amends Tennessee Code Annotated, Section 67-5-502(d) regarding property tax assessments on leasehold interests in real property

Creates an exemption from separate property tax assessment for lessees who are corporate instrumentalities of housing authorities (created under § 13-20-104(b)) for leases entered into or amended on or after April 30, 2026, when improvements are used to promote affordable housing

Maintains existing exemption for lessee interests subject to payment-in-lieu-of-taxes agreements with state or local governments entered into or amended on or after April 30, 2019

Requires qualifying properties to be assessed solely to the governmental entity or housing authority, with all applicable exemptions applied

Takes effect immediately upon becoming law