Taxes, Ad Valorem

Plain English Breakdown

The official source material does not provide specific details on how the tax relief programs will be set up or run, leaving this as an unknown.

Property Tax Penalty for Elderly and Disabled

This bill adds a new penalty on delinquent property taxes to be used for tax relief programs for elderly low-income homeowners, disabled individuals, or disabled veterans and their widows.

What This Bill Does

• Adds a 5% penalty on all overdue property taxes before interest or other penalties are added.
• Requires this penalty money to be used for tax relief programs for certain groups of people.
• Specifies that the penalty applies when someone files a lawsuit to enforce unpaid property taxes.
• Exempts specific counties from applying this new penalty and allows Knox County to set its own higher penalty.

Who It Names or Affects

• Homeowners who are elderly, low-income, disabled, or disabled veterans and their widows.
• People with overdue property taxes facing legal action.
• Counties and municipalities collecting delinquent property taxes.

Terms To Know

Delinquent Taxes

Taxes that are owed but not paid on time.

Tax Lien

A legal claim placed on a property because taxes have not been paid.

Limits and Unknowns

• The bill does not specify how the tax relief programs will be set up or run.
• Some counties are exempt from this new penalty, and Knox County can choose to add its own higher penalty.

Official Summary Text

Upon the filing of
a law
suit to enforce
a
tax lien against real or personal property,
present law adds certain penalties to the base amount of delinquent taxes. A penalty of 10%, computed on
the base amount of delinquent ta
xes, not including accrued interest or penalties
, is added to
delinquent taxes owed to cover the prosecution of the suit. However, (i) such 10% penalty does not apply in Clay, Davidson, Jackson, Macon, Pickett, Scott, Smith, Sumner, and Wilson counties

an
d

(ii) Knox County is authorized to impose a 20% penalty if approved by two-thirds vote of the municipal legislative body. Another 10% is added to cover the cost of the attorney filing the suit, calculated in the same way, with the same counties excluded.
A penalty of $7.50 is added
to be paid to the sheriff for serving process. The court also adds any court costs to the total.

This bill adds a
penalty of 5% upon all delinquent taxes
, calculated on the base amount owed before accrued interest or penalt
ies. This 5%
penalty must be devoted to providing tax relief for homeowners who are elderly low-income, disabled, or a disabled veteran or widow of a disabled veteran.

Current Bill Text

HOUSE BILL 766
By Wright

SENATE BILL 774
By Briggs

SB0774
002349
- 1 -

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

BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF TENNESSEE:
SECTION 1. Tennessee Code Annotated, Section 67-5-2410, is amended by adding
the following as a new subsection (c) and redesignating the existing subsections accordingly:
(c) Upon the filing of suits to enforce the tax lien against real or personal
property, an additional penalty of five percent (5%) upon all delinquent taxes accrues,
and the penalty is imposed upon the amount due from any defendant to the state,
county, or municipality, which penalty must be devoted to providing tax relief for the
homeowners who are elderly low-income, disabled, or a disabled veteran or widow of a
disabled veteran, pursuant to part 7 of this chapter. Such penalty must be computed on
the base amount of delinquent taxes, not including accrued interest or penalties.
SECTION 2. This act takes effect July 1, 2025, the public welfare requiring it.