Taxes

Plain English Breakdown

The official summary text does not provide information about extending deadlines from 30 days to 180 days for disaster relief applications.

Tennessee Property Tax Exemptions and Disaster Relief

This bill changes rules for property tax exemptions for religious and nonprofit organizations and disaster relief applications, updates interest rates for tax appeals based on federal reserve's composite prime rate minus two points annually, and modifies the size of metropolitan boards of equalization.

What This Bill Does

• Extends the deadline from 30 days to 180 days for religious and nonprofit organizations to apply for property tax exemption after starting exempt use of their property.
• Requires local governing bodies to approve disaster relief applications by resolution, not just a two-thirds vote.
• Updates interest rates annually for tax appeals based on the federal reserve's composite prime rate minus two points.
• Allows metropolitan boards of equalization to have up to 12 members instead of five or seven.

Who It Names or Affects

• Religious, charitable, scientific, and nonprofit educational organizations
• Local government bodies in Tennessee
• Taxpayers who appeal tax assessments

Terms To Know

Exemption

A situation where a property is not taxed.

Disaster declaration

An official statement by the president that an area has experienced a disaster, allowing for special tax relief measures.

Limits and Unknowns

• The bill does not specify how much longer it will take local governing bodies to approve disaster relief applications.
• It is unclear if extending the exemption application period from 30 days to 180 days will lead to more or fewer organizations applying for exemptions.

Official Summary Text

ON APRIL 13, 2026, THE SENATE ADOPTED AMENDMENT #1 AND PASSED SENATE BILL 2537, AS AMENDED.

AMENDMENT #1 rewrites the bill to, instead, provide that an application for an exemption from property taxation for property owned by a religious, charitable, scientific, or nonprofit educational organization that is filed within 180 days after the exemp
t use of the property began will be effective as of the date the exempt use began, if the application is made after May 20th of the year for which the exemption is sought, but prior to the end of the year. Present law provides that an application that is
f
iled within 30 days after the exempt use of the property began will be effective as of the date the exempt use began. This amendment provides that, for an application filed more than 180 days after the exempt use began, the exemption will be effective as
of the date of the application.

Present law provides that, in the case of property damage that has occurred as a result of a disaster declared by the president of the United States, the annual assessment of an affected building or improvement in a county included in the presidential de
claration must be prorated for the actual time the building or improvement is destroyed and not replaced, or the actual time the building or improvement is substantially damaged. The owner of such property must apply for this relief to the assessor of pr
op
erty by September 1st. However, these provisions do not take effect as to any particular county or municipality unless approved by a 2/3 vote of its governing body following the disaster declaration. This amendment requires such an approval to be done b
y resolution of the governing body.

Present law provides that, in the case of damage to commercial and industrial tangible personal property that has occurred as a result of a disaster declared by the president of the United States, the annual assessment must be prorated for the actual tim
e the qualifying personal property is not replaced or restored. The owner must apply for this relief to the assessor of property. However, these provisions do not take effect as to any particular county or municipality unless approved by 2/3 vote of its
g
overning body following the disaster declaration. This amendment requires such an approval to be done by resolution of the governing body.

Present law authorizes the state board of equalization to receive, hear, consider, and act upon complaints and appeals made to the board regarding the valuation, classification, and assessment of taxes on all properties in this state. Following an appea
l to the board of equalization, any additional tax due will accrue interest from the delinquency date at the composite prime rate published by the federal reserve as of the delinquency date, minus two points. This amendment requires the interest rate to
be
updated annually each subsequent year. Further, the interest rate of any tax found refundable following the appeal must be updated annually each subsequent year.

Present law provides that, in a county with a metropolitan form of government, the charter for the metropolitan government may provide for the creation of a metropolitan board of equalization consisting of either five or seven members. This amendment pr
ovides that such a metropolitan board of equalization may consist of either five or 12 members.

Current Bill Text

HOUSE BILL 2207
By Hicks G

SENATE BILL 2537
By Hatcher
SB2537
012277
- 1 -

AN ACT to amend Tennessee Code Annotated, Title 67,
relative to taxation.

BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF TENNESSEE:
SECTION 1. Tennessee Code Annotated, Section 67-5-701(d)(1), is amended by
deleting the language "thirty-five (35) days" and substituting instead the language "forty-five (45)
days".
SECTION 2. This act takes effect upon becoming a law, the public welfare requiring it.