Prior to 2007, county governments got a share of real estate transfer taxes that were collected at the county level when deeds were registered. The local share was taken away during the Bredesen Administration, but legislators hope to return those funds to county governments.
With the dramatic increase in property values and the great need for additional local revenue, many people, including legislators and local officials, are saying the time has come to return at least a portion of the real estate transfer tax to the counties where the taxes are collected.
Montgomery County is one of many local jurisdictions asking the legislature to return 50% of the real estate transfer taxes that are collected by the local register of deeds offices across the state. Each time a real estate transaction is recorded, a fee of $.37/$100 of value is charged and sent to the state coffers, less a small percentage that is kept by the register of deeds to cover administrative costs.
