Taxes, Exemption and Credits - As introduced, creates tax exemption for portions of property that provide tree canopy cover in counties whose local governing bodies elect to create the exemption. - Amends TCA Title 5; Title 6 and Title 67, Chapter 5.

HB 402 would allow property owners in Tennessee counties that choose to adopt the program to apply for a property tax exemption on portions of their land covered by tree canopy. The exemption applies only to the canopy-covered area (measured via study, aerial imagery, or field survey), not the entire property, and requires county approval to implement. County agencies would determine eligibility, process applications, and set exemption values, with the exemption lasting up to seven years. This bill does not change current tax rates but offers a limited, targeted reduction for properties meeting specific tree canopy criteria.