Official Summary Text
UPPER LIMIT
Present law requires
that
certain low-income taxpayers
,
65
or older
, are paid
from the general funds to
reimburse such taxpayers for all or part of the local property taxes paid for
the
taxpayer's residence.
For this purpose,
the taxpayer's annual income from all sources
must
not exceed $24,000
.
Such reimbursement
must
be paid on the first $27,000, or such other amount as set forth in the general appropriations act or as adjusted
to reflect inflation after 2018
, of the full market value of such property.
This bill revises th
ese provisions so that r
eimbursement must be paid on the assessed value of the property
, as defined below. However, the
reimbursement must not be paid if the assessed value of the property exceeds $400,000, or such other amount as set forth in the general
appropriations act or as adjusted
for inflation,
in the first year tax relief for the property is claimed by the taxpayer. If the assessed value of the property of a taxpayer who received
this
tax relief in the previous year exceeds the upper limit set o
r adjusted in the subsequent year, then reimbursement must be paid on the upper limit.
INFLATION ASSESSMENT
Present law requires
the amount on which reimbursement
is paid to be
increased annually to reflect inflation, as measured by the United States b
ureau of labor statistics consumer price index for all urban consumers
,
rounded to the nearest $100.
This bill revises this provision so that, instead, b
eginning
with
tax year 2027, the upper limit on the assessed value must be increased annually to refle
ct inflation, as measured by the United States bureau of labor statistics consumer price index for all urban consumers, and rounded to the nearest $100.
REIMBURSEMENT
In determining the amount of relief to a taxpayer,
present law provides that
the eff
ective assessed value on the first $27,000, or such other amount as set forth in the general appropriations act or as adjusted
for inflation,
of full market value
must
be multiplied by a tax rate that has been adjusted to reflect the relationship between a
ppraised value and market value in that jurisdiction, as determined by the state board of equalization.
This bill revises this provision to provide, instead, that the r
eimbursement is based on the taxpayer's age and must be calculated as a percentage of t
he property tax owed and paid on the assessed value
.
The assessed value must be multiplied by a tax rate that has been adjusted to reflect the relationship between appraised value and market value in that jurisdiction, as determined by the state board of
equalization.
ASSESSED VALUE
Present law requires t
he effective assessed value
to
be determined by multiplying the full market value of the property up to
$27,000, or such other amount as set forth in the general appropriations act or as adjusted
for inflation,
by 25%.
This bill removes this provision and requires, instead, that t
he assessed value is determined by multiplying the full market value of the property by 25%.
T
he amount of property tax relief available to a taxpayer is as follows:
If the taxpayer is 65, then the reimbursement is 10% of the property tax paid
.
Each additional year results in an additional 10
%
of property tax reimbursement
.
If the taxpayer is 74 or older, then the reimbursement is 100% of the property tax paid.
Current Bill Text
Read the full stored bill text
SENATE BILL 1173
By Akbari
HOUSE BILL 941
By Mitchell
HB0941
001982
- 1 -
AN ACT to amend Tennessee Code Annotated, Title 67,
Chapter 5, Part 7, relative to elderly, low-income
homeowners.
BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF TENNESSEE:
SECTION 1. Tennessee Code Annotated, Section 67-5-702(a), is amended by deleting
subdivision (3) and substituting instead the following:
(A) Reimbursement must be paid on the assessed value of the property and in
accordance with subsection (b); provided, that reimbursement must not be paid if the
assessed value of the property exceeds four hundred thousand dollars ($400,000), or
such other amount as set forth in the general appropriations act or as adjusted pursuant
to subdivision (a)(3)(B), in the first year tax relief for the property is claimed by the
taxpayer. If the assessed value of the property of a taxpayer who received tax relief
pursuant to this section in the previous year exceeds the upper limit set or adjusted
pursuant to this subdivision (a)(3) in the subsequent year, then reimbursement must be
paid on the upper limit.
(B) Beginning for tax year 2027, and each subsequent tax year, the upper limit
on the assessed value under subdivision (a)(3)(A) must be increased annually to reflect
inflation, as measured by the United States bureau of labor statistics consumer price
index for all urban consumers, and rounded to the nearest one hundred dollars ($100).
The comptroller of the treasury shall notify taxpayers of any change in dollar amounts
made pursuant to this subdivision (a)(3)(B) and post the information in a readily
identifiable location on the comptroller's website. The annual percentage changes used
- 2 - 001982
in this calculation must be not less than zero percent (0%) and not more than three
percent (3%).
SECTION 2. Tennessee Code Annotated, Section 67-5-702(b), is amended by deleting
the subsection and substituting instead the following:
(1) In determining the amount of relief to a taxpayer:
(A) Reimbursement is based on the taxpayer's age and must be
calculated as a percentage of the property tax owed and paid on the assessed
value; and
(B) The assessed value must be multiplied by a tax rate that has been
adjusted to reflect the relationship between appraised value and market value in
that jurisdiction, as determined by the state board of equalization.
(2) The assessed value is determined by multiplying the full market value of the
property by twenty-five percent (25%).
(3) The full market value of the property is determined by adjusting the
appraised value of the property as shown on the records of the assessor of property by a
factor that reflects the relationship between appraised value and market value in that
jurisdiction, as determined by the state board of equalization.
(4) The amount of property tax relief available to a taxpayer is as follows:
(A) If the taxpayer is sixty-five (65) years of age, then the reimbursement
is ten percent (10%) of the property tax paid;
(B) Each additional year of age results in an additional ten percent (10%)
of property tax reimbursement; and
(C) If the taxpayer is seventy-four (74) years of age or older, then the
reimbursement is one hundred percent (100%) of the property tax paid.
- 3 - 001982
SECTION 3. This act takes effect July 1, 2025, the public welfare requiring it, and
applies to tax years beginning on or after that date.