Taxes, Personal Property

Plain English Breakdown

The bill's impact on specific financial outcomes is uncertain.

Hamilton County Property Tax Changes

This bill allows Hamilton County to not charge or collect personal property taxes under $20 if approved by local laws and two-thirds of the legislative body.

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.
• Permits the trustee to stop trying to collect these small taxes or forgive any penalties if they are late.
• Requires the trustee to keep a record of all such small taxes by taxpayer and year.
• Allows collection of these small taxes later when other related taxes for the same account are paid.

Who It Names or Affects

• Taxpayers in Hamilton County who have personal property tax bills under $20.
• The county trustee or other officials responsible for collecting property taxes in Hamilton County.

Terms To Know

de minimis

Very small amounts that are usually not important enough to consider.

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 if the county's legislative body votes to approve it with at least two-thirds support.
• It is not clear exactly how much money Hamilton County will save or lose from this change.

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

HOUSE BILL 1083
By Martin G

SENATE BILL 1061
By Gardenhire

SB1061
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

- 2 - 003216

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.