Foreign Investors Object To State Law Forbidding Their Ownership Of Land In Tennessee

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The Tennessee Conservative [By Paula Gomes] –

Foreign investors are objecting to a state law that forbids their ownership of land in Tennessee.

According to the law, a foreign party or foreign-party-controlled business from a country currently sanctioned by the United States government that must divest ownership of any agricultural land in Tennessee on or after January 1st, 2025. If they do not, they can be charged with a Class A misdemeanor, punishable by a fine of $1,500 or by serving up to 11 months and 29 days, or both.

Walton Tennessee, called a “shell company” by Representative Jason Zachary (R-Knoxville-District 14), is suing the state on behalf of 3 of its investors, a United States citizen who lives in Shanghai, an Italian citizen residing in Hong Kong, and a United States citizen in South Carolina.

The law, passed earlier this year, prohibits countries subject to the International Traffic in Arms Regulations from owning Tennessee land, this includes residents of China, Iran, and North Korea.

The plaintiffs in the suit, and Walton Tennessee, have ownership interest in more than 1,200 acres across the state and stand to lose their land without compensation if they do not divest by the beginning of next year. According to their arguments, they stand to lose more than $100 million if the state takes the land.

According to public records that WATE obtained earlier this year, Walton Tennessee owns approximately 500 acres just in Loudon County. The company has been selling off parcels of the land to foreign investors over the last few years. In some cases, for as little as $10.

Loudon County Mayor Buddy Bradshaw has expressed concern that the sizable piece of property is in proximity to Oak Ridge National Laboratory. While Zachary pointed out that ownership by foreign entities means less land for Tennesseans to farm.

Last year, the Tennessee General Assembly passed a law that took effect July 1st, 2023, that required every “nonresident alien, foreign business, or foreign government, or an agent, trustee, or fiduciary thereof” who owned an interest in property in the state to register with the Secretary of State within 60 days of purchase. However, this law was not retroactive, so it did not apply to any land already held by foreign investors before that date.

The law passed this year takes the intent of the legislature to protect land within the state from foreign ownership to the next level, requiring entities that are potentially hostile to the United States to sell their interest or risk the state taking it.

About the Author: Paula Gomes is a Tennessee resident and reporter for The Tennessee Conservative. You can reach Paula at paula@tennesseeconservativenews.com.