Taxes, Ad Valorem

Plain English Breakdown

The candidate explanation included a claim about ensuring that declined disputed tax payments are not considered overdue, which was not explicitly supported by the official source material. The bill text implies this indirectly but does not state it directly.

Property Tax Appeal Changes

This bill changes how property owners can appeal their tax valuations and sets rules for when taxes are paid during an appeal process.

What This Bill Does

• Removes the need for a taxpayer to get permission from the assessor before appealing industrial or commercial property valuation directly to the state board of equalization.
• Requires city or county officials to send written notice explaining why they declined to accept disputed tax payments within seven days if such payment is refused during an appeal period.
• Specifies that no interest will accrue on disputed taxes from the delinquency date until 30 days after a final assessment by the state board of equalization, provided the undisputed portion is paid.

Who It Names or Affects

• Property owners and taxpayers who want to challenge their property valuations.
• City or county officials responsible for collecting taxes.

Terms To Know

Assessor

A person appointed by the government 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 how much money it will save or cost local governments.
• It is unclear what happens if the city or county collecting official fails to send the required notice within seven days as mandated by the bill.

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

HOUSE BILL 733
By Crawford

SENATE BILL 771
By Briggs

SB0771
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.