Taxes, Personal Property

Plain English Breakdown

The bill's exact fiscal impact on the county is uncertain and cannot be determined with reasonable certainty.

Tennessee Property Tax Bill

This bill allows Hamilton County to not charge or collect personal property taxes under $20 if approved by local officials.

What This Bill Does

• Allows the county trustee in Hamilton County to choose not to send bills for personal property taxes that are less than $20, if authorized by a private act, resolution, or ordinance and approved by a two-thirds majority of the legislative body.
• Permits the trustee to stop trying to collect these small taxes and forgive any late fees or interest on them under the same conditions.
• Requires the trustee to keep a record of all such small taxes by taxpayer account and year.
• States that if someone pays another tax for their property later, they must also pay the small tax from before.

Who It Names or Affects

• Taxpayers in Hamilton County who owe less than $20 in personal property taxes.
• The county trustee and other officials responsible for collecting these taxes.

Terms To Know

de minimis

Very small or insignificant, often used to describe tiny amounts of tax that are not worth collecting.

statute of limitations

A law that sets a time limit for how long after an event someone can take legal action about it.

Limits and Unknowns

• The bill only applies to Hamilton County and requires approval by local officials.
• It is not clear exactly how much money the county will save or lose from this change.
• This law does not apply to other counties in Tennessee unless they pass similar laws.

Official Summary Text

With respect to
de minimus personal property tax totaling less than $20 as calculated with respect to a specific taxpayer,
this bill authorizes
the county
trustee or other property tax collecting official
in Hamilton County
, if authorized by a private act, resolution, or ordin
ance to decline to bill the tax and if the legislative body approves this bill by a two-thirds majority, to decline to refer the tax f
or further collection, or abate any penalty or interest otherwise due for late payment of the tax. This bill provides that the tax collecting official must maintain a list of de minimus personal property taxes by a taxpayer account and by year, and the t
a
x may be collected when a tax related to the same account is tendered for a later year. S
uch collection is not barred by any applicable statute of limitations.

Current Bill Text

SENATE BILL 1061
By Gardenhire

HOUSE BILL 1083
By Martin G

HB1083
003216
- 1 -

AN ACT to amend Tennessee Code Annotated, Section
67-5-2013, relative to collection of property taxes.

BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF TENNESSEE:
SECTION 1. Tennessee Code Annotated, Section 67-5-2013, is amended by
designating the existing language as subsection (a) and adding the following new subsection
(b):
(1) With respect to a de minimus personal property tax totaling less than twenty
dollars ($20.00) as calculated with respect to a specific taxpayer, the county trustee or
other property tax collecting official may, if authorized by a private act, resolution, or
ordinance:
(A) Decline to bill the tax;
(B) Decline to refer the tax for further collection; or
(C) Abate any penalty or interest otherwise due for late payment of the
tax.
(2) The tax collecting official shall maintain a list of de minimus personal property
taxes by taxpayer account and by year, and the tax may be collected when a tax related
to the same account is tendered for a later year; provided, that such collection is not
barred by any applicable statute of limitations.
(3) This subsection (b) applies in a county having a population of not less than
three hundred sixty-six thousand two hundred (366,200) and not more than three
hundred sixty-six thousand three hundred (366,300), according to the 2020 or a

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subsequent federal census, if this subsection (b) is adopted by a two-thirds (2/3) vote of
the legislative body of such county.
SECTION 2. This act takes effect upon becoming a law, the public welfare requiring it.