Amends TCA Title 26, Chapter 2, Part 3.

Present law establishes a homestead exemption on real property that is owned by an individual and used by the individual or the individual's spouse or dependent, as a principal place of residence. The homestead exemption is not subject to execution, attachment, or sale under legal proceedings during the life of the individual who holds the exemption. The amount of the exemption is as follows: (1) $5,000 for an individual; (2) $7,500 for individuals who jointly own and use real property as their principal place of residence; (3) $12,500 for an unmarried individual who is 62 years of age or older; (4) $20,000 for a married couple, one of whom is 62 years of age or older and the other of whom is younger than 62 years of age; (5) $25,000 for a married couple, both of whom are 62 years of age or older; and (6) $25,000 for an individual who has one or more minor children in the individual's custody. This bill removes the dollar limits to the aggregate value of homestead exemptions. Under this bill, an individual, whether a head of family or not, will be entitled to a homestead exemption upon real property which is owned by the individual and used by the individual or the individual's spouse or dependent, as a principal place of residence. This bill provides that, subject to state constitution, there will be no limit to the aggregate value of a homestead exemption. The state constitution provides that "there is a homestead exemption in an amount of $5,000 or such greater amount as the general assembly may establish." This bill limits the homestead exemption to a single parcel of land not to exceed five acres in area. ON APRIL 14, 2021, THE SENATE ADOPTED AMENDMENT #1 AND PASSED SENATE BILL 566, AS AMENDED. AMENDMENT #1 rewrites this bill to set the maximum homestead exemption at $35,000 for all persons described in (1) and (3)-(6) of the Bill Summary, and $52,500 for those described in (2).