Taxes, Ad Valorem - As introduced, revises the definition of "residential property" for purposes of classification and assessment of property taxes to include property that can be sold and purchased as a single unit fee simple title, regardless of whether it is vacant, owner-occupied, rented, or detached or attached. - Amends TCA Title 67, Chapter 5.

SB 327 revises Tennessee's definition of "residential property" for property tax purposes. It expands the current definition to include any property that can be sold as a single unit (fee simple title), regardless of whether it's vacant, owner-occupied, rented, detached, or attached - provided it contains no more than one rental unit. This change directly affects property owners and assessors by broadening which properties qualify as residential for tax classification. The key mechanism replaces the previous requirement that properties must be "used for dwelling purposes" with a focus on the property's saleability as a single unit. This adjustment aims to simplify classification while ensuring properties meeting the new criteria are assessed under residential tax rates.