Taxes, Ad Valorem

Plain English Breakdown

The official source material does not provide detailed information on the bill's impact on local government revenue and its potential effects on appeal numbers and equalization board workload.

Property Tax Appeal Changes

This bill changes how property owners can appeal their tax assessments in Tennessee by removing the need for assessor consent and setting rules for city or county officials to follow when declining disputed portions of taxes.

What This Bill Does

• Removes the requirement that a taxpayer obtain written consent from an assessor before appealing industrial or commercial property valuations directly to the state board of equalization.
• Requires city or county collecting officials to send written notice explaining why they declined to accept a disputed portion of tax within seven days if such a decline occurs.
• Specifies that interest does not accrue on the disputed portion of taxes from the delinquency date until 30 days after the state board issues its final assessment certificate and until the undisputed part is paid.
• Ensures that any declined disputed portion of tax is not considered overdue while an appeal is pending.

Who It Names or Affects

• Property owners who want to challenge their property valuations.
• City or county collecting officials responsible for accepting taxes.
• The state board of equalization handling appeals.

Terms To Know

Assessor

A person whose job is to determine the value of properties for tax purposes.

Equalization Board

An official body that reviews and adjusts property valuations to ensure fairness in taxation.

Limits and Unknowns

• The bill does not specify a precise impact on local government revenue.
• It is unclear how this change will affect the number of appeals or the workload for equalization boards.

Official Summary Text

APPEAL TO THE LOCAL BOARD OF EQUALIZATION

Present law authorizes a
taxpayer or owner
to
, with the written consent of the assessor, appeal the valuation of industrial a
nd commercial real and tangible personal property to the local board of equalization, or directly to the state board of equalization.
This bill removes the requirement that a taxpayer first must obtain consent of the assessor to appeal to the local board
of equalization.

PENALTIES AND INTEREST

Present law provides that any p
enalty and interest otherwise due on delinquent property taxes does not accrue while an appeal of the assessment is pending before the county or state boards of equalization if the
taxpayer, before the delinquency date, pays the undisputed portion or pays the full tax due.

If the full tax due is paid, the city or county collecting official may decline to accept the disputed portion of tax.
This bill adds that i
f
such official
decli
ne
s the disputed portion,
then the official
must
send a written notice to the taxpayer

that explains the reason for declining. If the city or county collecting official fails to send the required notice within seven calendar day
s,
then the official
must
a
ccept the disputed portion of tax tendered by the taxpayer. Any disputed portion declined by the city or county collecting official is not delinquent for any purpose while an appeal of the assessment is pending before the county or state boards of equali
z
ation.

Present law provides that a
ny additional tax due following the appeal will accrue interest from the delinquency date at the composite prime rate published by the federal reserve board as of the delinquency date, minus two points.

If the city or c
ounty collecting official declines to accept the disputed portion of the tax, then
this bill provides that
interest must not accrue on the disputed portion from the delinquency date until 30 days after issuance of the final assessment certificate of the st
ate board of equalization and until the undisputed portion is paid.

Current Bill Text

SENATE BILL 771
By Briggs

HOUSE BILL 733
By Crawford

HB0733
002828
- 1 -

AN ACT to amend Tennessee Code Annotated, Title 67,
Chapter 5, relative to property tax appeals.

BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF TENNESSEE:
SECTION 1. Tennessee Code Annotated, Section 67-5-1412(b)(2), is amended by
deleting the subdivision and substituting instead the following:
(2) Notwithstanding subdivision (b)(1) or another law to the contrary, a taxpayer
or owner may appeal the valuation of industrial and commercial real and tangible
personal property to the local board of equalization, or directly to the state board of
equalization. A direct appeal to the state board of equalization must be filed before
August 1 of the tax year, and the taxpayer shall indicate that the appeal is a direct
appeal to the state board of equalization.
SECTION 2. Tennessee Code Annotated, Section 67-5-1512(b)(3), is amended by
deleting the subdivision and substituting instead the following:
(3) If the full tax due is paid, the city or county collecting official may decline to
accept the disputed portion of tax. If a city or county collecting official declines to accept
the disputed portion of tax in accordance with this subdivision (b)(3), then the official
shall send a written notice to the taxpayer by registered or certified mail, with return
receipt requested, that explains the reason for declining to accept the disputed portion of
tax. If the city or county collecting official fails to send the required notice within seven
(7) calendar days of the decline to accept the disputed portion of tax, then the official
shall accept the disputed portion of tax tendered by the taxpayer. Any disputed portion
of tax declined by the city or county collecting official is not delinquent for any purpose

- 2 - 002828

while an appeal of the assessment is pending before the county or state boards of
equalization.
SECTION 3. Tennessee Code Annotated, Section 67-5-1512(c), is amended by
deleting the subsection and substituting instead the following:
(c) If the city or county collecting official declines to accept the disputed portion
of the tax, then interest must not accrue on the disputed portion from the delinquency
date until thirty (30) days after issuance of the final assessment certificate of the state
board of equalization and until the undisputed portion is paid.
SECTION 4. This act takes effect upon becoming a law, the public welfare requiring it.