Tenn. Code Ann. § 67-1-803 — TN Code / Title 67 / Chapter 1 / Section 67-1-803
Waiver of penalty
Status: in_force

(a) (1) The commissioner is authorized to waive, in whole or in part, any statutory penalty imposed under any revenue laws administered by the commissioner in any case of deficiency or delinquency tax collection made by the department, if the commissioner determines that the payment by a taxpayer of a tax in an amount less than that due under the applicable laws and regulations, or that the failure of a taxpayer to pay any tax by the due date is the result of one (1) or more of the good and reasonable causes enumerated in subsection (c) and is not a result of gross negligence or willful disregard of the law. (2) Under no circumstances, however, shall this authority be deemed to extend to any interest payable under the law in connection with any case of tax deficiency or delinquency. (3) The commissioner shall prescribe and publish rules and regulations governing the manner in which applications for a waiver of penalty shall be accepted and processed. (b) Initial receipt, review and recommendation for approval or disapproval of each application for waiver of penalty, as authorized in subsection (a), shall be made by the director, or the director's delegate, of the division or agency within the department charged by the commissioner with the enforcement of the tax involved. The commissioner or the commissioner's delegate shall thereafter review and approve or disapprove each application for waiver of penalty, as the commissioner or the commissioner's delegate may deem proper, and such determination by the commissioner or the commissioner's delegate shall constitute the determinative and final decision on the application. (c) (1) In the case of a tax deficiency, that is constituted by a failure to pay the full amount of tax due under the law, the following specific causes, if clearly established by the taxpayer, shall be acceptable as good and reasonable cause for the waiver of penalty: (A) The taxpayer incurred the deficiency as a result of having been misled by erroneous advice or action, that was not clearly in contravention of the law, on the part of officials charged with the enforcement of this state's tax statutes; (B) The taxpayer incurred the deficiency as a result of legal misadvice that was not clearly in contravention of the law, from an ostensibly competent and financially independent lawyer or accountant; (C) The provisions of the pertinent law or regulation were, at the time the deficiency was incurred, unsettled, unclear, and misleading to a reasonable person; and the taxpayer acted in good faith on a reasonable, though mistaken, application of such law or regulation, with the result that the tax deficiency in question was incurred; (D) The deficiency resulted from reliance by the taxpayer upon factual, but not legal, misrepresentations made by persons with whom the taxpayer dealt in the course of the taxpayer's business, other than the taxpayer's own agents or employees, the taxpayer having no reason to doubt or question such misrepresentations; or (E) The deficiency resulted from a mistake of fact on the part of the taxpayer, who thereafter voluntarily and without any kind of demand upon the part of the officials charged with the enforcement of the law, tenders the amount of the deficiency, plus accrued interest. (2) If the cause for the deficiency does not comport with any of the causes provided for in subdivision (c)(1), a determination may be made, nevertheless, as to whether the statement of facts submitted by the taxpayer, or known to the commissioner, establishes a good and reasonable cause. Any cause for a deficiency may be accepted as a good and reasonable cause that appears to the commissioner to justify a conclusion by the commissioner that the taxpayer has done everything the taxpayer could reasonably be expected to do as an ordinarily intelligent and reasonably prudent business person and that clearly negates either a willful disregard of the law or gross negligence. (d) (1) In the case of a tax delinquency of not more than thirty (30) days, which is constituted by a failure to file a return and pay the tax within not more than thirty (30) days after the time prescribed by law, the following specific causes, if clearly established by the taxpayer, shall be acceptable as good and reasonable cause for the waiver of penalty: (A) Return was timely mailed, but for reasons either known or unknown was not timely received or not received at all, and the taxpayer satisfactorily explains noncompliance within § 67-1-107 ; (B) Delinquency was due to erroneous information given the taxpayer by an official charged with the enforcement of this state's tax statutes; (C) Delinquency was attributable to an intervening providential cause, such as, but not limited to, the occurrence of a disabling injury, illness, or death of the taxpayer, or a member of the taxpayer's immediate family, or of a person upon whom the taxpayer has heretofore exclusively relied for the preparation of the taxpayer's returns, and such intervening cause occurred prior to the date on which the required return and payment would otherwise be deemed delinquent; (D) Delinquency was caused by unavoidable absence of the taxpayer or a person upon whom the taxpayer has heretofore exclusively relied for the preparation of the taxpayer's returns; (E) Delinquency was caused by the destruction by fire or other casualty of the taxpayer's place of business or business records; (F) The taxpayer proves that the taxpayer made timely application to the department for the proper tax forms, and these were not furnished the taxpayer in sufficient time to permit the executed return to be filed on or before the due date; (G) The taxpayer proves that the taxpayer personally visited an office of the department before the expiration of the time within which to file the required return for the purpose of securing information or aid to properly make out the taxpayer's return and, through no fault of the taxpayer, was unable to secure such information or aid; (H) Delinquency was a result of the taxpayer's failure to enclose a negotiable instrument, as defined by the Uniform Commercial Code, compiled in title 47, with the taxpayer's timely filed return, and the taxpayer promptly responds to a request for payment upon notification thereof, and satisfactorily demonstrates such failure was due to an inadvertent oversight or error; or (I) Delinquency becomes apparent when the taxpayer voluntarily pays the tax but, for any legal reason, the department would be unable to enforce collection, such as the collection would be barred by the statute of limitations, the lack of jurisdiction or other similar reason. (2) If the cause for the delinquency does not comport with any of the causes provided for in subdivision (d)(1), or if the delinquency is of more than thirty (30) days' duration, a determination may be made, nevertheless, as to whether the statement of facts submitted by the taxpayer, or known to the commissioner, establishes a good and reasonable cause. Any cause for a delinquency may be accepted as a good and reasonable cause that appears to the commissioner to justify a conclusion by the commissioner that the taxpayer has done everything the taxpayer could reasonably be expected to do as an ordinarily intelligent and reasonably prudent business person, and that clearly negates either a willful disregard of the law or gross negligence. (3) Notwithstanding subdivisions (d)(1) and (2), the commissioner may accept as good and reasonable cause for waiver of a delinquency penalty the fact that the taxpayer has timely filed and paid such tax for a period of at least two (2) years next preceding the due date of the delinquent return and payment, if the specific cause for the delinquency does not constitute a willful disregard of the law or gross negligence. If the taxpayer has filed estimated payments of franchise and excise taxes by the due date as required by § 67-4-2015 for a period of at least two (2) years, but the estimated payments resulted in an underpayment for which penalties and interest accrued, the commissioner may consider such estimated payments to be filed in a timely manner for purposes of establishing good and reasonable cause under this subdivision (d)(3). (e) (1) There shall be no judicial review of the commissioner's action upon applications for waiver of penalty as authorized in subsection (a) otherwise than as provided in part 9 of this chapter. (2) The commissioner's action upon all applications for waiver of penalty made under this section shall be deemed final. (3) Prior determinations of the attorney general and reporter as to what constitutes good and reasonable cause for a deficiency shall serve as a guide and standard of reference for future decisions whenever those determinations may be applicable to the specific cause established. (4) (A) The commissioner is authorized, in the commissioner's discretion, to designate subordinate officials in the department to waive, on the commissioner's behalf, penalties in amounts of five thousand dollars ($5,000) or less. (B) The commissioner is authorized, in the commissioner's discretion, to waive penalties in amounts of fifteen thousand dollars ($15,000) or less. (C) The commissioner is authorized, in the commissioner's discretion, to waive penalties in amounts of more than fifteen thousand dollars ($15,000); provided, that the attorney general and reporter may require that such waivers or any class of such waivers be subject to the attorney general and reporter's prior review and approval. Amended by 2016 Tenn. Acts, ch. 881,s 1, eff. 4/27/2016. Amended by 2015 Tenn. Acts, ch. 514,s 2, eff. 7/1/2016. Acts 1921, ch. 113, § 2; impl. am. Acts 1923, ch. 7, §§ 19, 24; Acts 1923, ch. 106, § 1; Shan. Supp., § 809a8; Code 1932, § 1478; impl. am. Acts 1937, ch. 33, § 50; impl. am. Acts 1959, ch. 9, § 14; Acts 1965, ch. 5, § 1; 1965, ch. 154, § 1; 1970, ch. 500, § 2; 1970, ch. 559, § 4; 1973, ch. 151, § 1; 1973, ch. 368, § 1; 1973, ch. 373, § 1; 1977, ch. 106, § 1; 1978, ch. 599, § 1; 1980, ch. 460, § 1; 1981, ch. 34, § 1; 1983, ch. 148, § 1; T.C.A. (orig. ed.), § 67-101(5); Acts 1984, ch. 550, § 1; 1984, ch. 832, § 2; 1988, ch. 526, § 8; 1992, ch. 626, § 1; 2011, ch. 467, § 9.
(a) (1) The commissioner is authorized to waive, in whole or in part, any statutory penalty imposed under any revenue laws administered by the commissioner in any case of deficiency or delinquency tax collection made by the department, if the commissioner determines that the payment by a taxpayer of a tax in an amount less than that due under the applicable laws and regulations, or that the failure of a taxpayer to pay any tax by the due date is the result of one (1) or more of the good and reasonable causes enumerated in subsection (c) and is not a result of gross negligence or willful disregard of the law. (2) Under no circumstances, however, shall this authority be deemed to extend to any interest payable under the law in connection with any case of tax deficiency or delinquency. (3) The commissioner shall prescribe and publish rules and regulations governing the manner in which applications for a waiver of penalty shall be accepted and processed.
(1) The commissioner is authorized to waive, in whole or in part, any statutory penalty imposed under any revenue laws administered by the commissioner in any case of deficiency or delinquency tax collection made by the department, if the commissioner determines that the payment by a taxpayer of a tax in an amount less than that due under the applicable laws and regulations, or that the failure of a taxpayer to pay any tax by the due date is the result of one (1) or more of the good and reasonable causes enumerated in subsection (c) and is not a result of gross negligence or willful disregard of the law.
(2) Under no circumstances, however, shall this authority be deemed to extend to any interest payable under the law in connection with any case of tax deficiency or delinquency.
(3) The commissioner shall prescribe and publish rules and regulations governing the manner in which applications for a waiver of penalty shall be accepted and processed.
(b) Initial receipt, review and recommendation for approval or disapproval of each application for waiver of penalty, as authorized in subsection (a), shall be made by the director, or the director's delegate, of the division or agency within the department charged by the commissioner with the enforcement of the tax involved. The commissioner or the commissioner's delegate shall thereafter review and approve or disapprove each application for waiver of penalty, as the commissioner or the commissioner's delegate may deem proper, and such determination by the commissioner or the commissioner's delegate shall constitute the determinative and final decision on the application.
(c) (1) In the case of a tax deficiency, that is constituted by a failure to pay the full amount of tax due under the law, the following specific causes, if clearly established by the taxpayer, shall be acceptable as good and reasonable cause for the waiver of penalty: (A) The taxpayer incurred the deficiency as a result of having been misled by erroneous advice or action, that was not clearly in contravention of the law, on the part of officials charged with the enforcement of this state's tax statutes; (B) The taxpayer incurred the deficiency as a result of legal misadvice that was not clearly in contravention of the law, from an ostensibly competent and financially independent lawyer or accountant; (C) The provisions of the pertinent law or regulation were, at the time the deficiency was incurred, unsettled, unclear, and misleading to a reasonable person; and the taxpayer acted in good faith on a reasonable, though mistaken, application of such law or regulation, with the result that the tax deficiency in question was incurred; (D) The deficiency resulted from reliance by the taxpayer upon factual, but not legal, misrepresentations made by persons with whom the taxpayer dealt in the course of the taxpayer's business, other than the taxpayer's own agents or employees, the taxpayer having no reason to doubt or question such misrepresentations; or (E) The deficiency resulted from a mistake of fact on the part of the taxpayer, who thereafter voluntarily and without any kind of demand upon the part of the officials charged with the enforcement of the law, tenders the amount of the deficiency, plus accrued interest. (2) If the cause for the deficiency does not comport with any of the causes provided for in subdivision (c)(1), a determination may be made, nevertheless, as to whether the statement of facts submitted by the taxpayer, or known to the commissioner, establishes a good and reasonable cause. Any cause for a deficiency may be accepted as a good and reasonable cause that appears to the commissioner to justify a conclusion by the commissioner that the taxpayer has done everything the taxpayer could reasonably be expected to do as an ordinarily intelligent and reasonably prudent business person and that clearly negates either a willful disregard of the law or gross negligence.
(1) In the case of a tax deficiency, that is constituted by a failure to pay the full amount of tax due under the law, the following specific causes, if clearly established by the taxpayer, shall be acceptable as good and reasonable cause for the waiver of penalty: (A) The taxpayer incurred the deficiency as a result of having been misled by erroneous advice or action, that was not clearly in contravention of the law, on the part of officials charged with the enforcement of this state's tax statutes; (B) The taxpayer incurred the deficiency as a result of legal misadvice that was not clearly in contravention of the law, from an ostensibly competent and financially independent lawyer or accountant; (C) The provisions of the pertinent law or regulation were, at the time the deficiency was incurred, unsettled, unclear, and misleading to a reasonable person; and the taxpayer acted in good faith on a reasonable, though mistaken, application of such law or regulation, with the result that the tax deficiency in question was incurred; (D) The deficiency resulted from reliance by the taxpayer upon factual, but not legal, misrepresentations made by persons with whom the taxpayer dealt in the course of the taxpayer's business, other than the taxpayer's own agents or employees, the taxpayer having no reason to doubt or question such misrepresentations; or (E) The deficiency resulted from a mistake of fact on the part of the taxpayer, who thereafter voluntarily and without any kind of demand upon the part of the officials charged with the enforcement of the law, tenders the amount of the deficiency, plus accrued interest.
(A) The taxpayer incurred the deficiency as a result of having been misled by erroneous advice or action, that was not clearly in contravention of the law, on the part of officials charged with the enforcement of this state's tax statutes;
(B) The taxpayer incurred the deficiency as a result of legal misadvice that was not clearly in contravention of the law, from an ostensibly competent and financially independent lawyer or accountant;
(C) The provisions of the pertinent law or regulation were, at the time the deficiency was incurred, unsettled, unclear, and misleading to a reasonable person; and the taxpayer acted in good faith on a reasonable, though mistaken, application of such law or regulation, with the result that the tax deficiency in question was incurred;
(D) The deficiency resulted from reliance by the taxpayer upon factual, but not legal, misrepresentations made by persons with whom the taxpayer dealt in the course of the taxpayer's business, other than the taxpayer's own agents or employees, the taxpayer having no reason to doubt or question such misrepresentations; or
(E) The deficiency resulted from a mistake of fact on the part of the taxpayer, who thereafter voluntarily and without any kind of demand upon the part of the officials charged with the enforcement of the law, tenders the amount of the deficiency, plus accrued interest.
(2) If the cause for the deficiency does not comport with any of the causes provided for in subdivision (c)(1), a determination may be made, nevertheless, as to whether the statement of facts submitted by the taxpayer, or known to the commissioner, establishes a good and reasonable cause. Any cause for a deficiency may be accepted as a good and reasonable cause that appears to the commissioner to justify a conclusion by the commissioner that the taxpayer has done everything the taxpayer could reasonably be expected to do as an ordinarily intelligent and reasonably prudent business person and that clearly negates either a willful disregard of the law or gross negligence.
(d) (1) In the case of a tax delinquency of not more than thirty (30) days, which is constituted by a failure to file a return and pay the tax within not more than thirty (30) days after the time prescribed by law, the following specific causes, if clearly established by the taxpayer, shall be acceptable as good and reasonable cause for the waiver of penalty: (A) Return was timely mailed, but for reasons either known or unknown was not timely received or not received at all, and the taxpayer satisfactorily explains noncompliance within § 67-1-107 ; (B) Delinquency was due to erroneous information given the taxpayer by an official charged with the enforcement of this state's tax statutes; (C) Delinquency was attributable to an intervening providential cause, such as, but not limited to, the occurrence of a disabling injury, illness, or death of the taxpayer, or a member of the taxpayer's immediate family, or of a person upon whom the taxpayer has heretofore exclusively relied for the preparation of the taxpayer's returns, and such intervening cause occurred prior to the date on which the required return and payment would otherwise be deemed delinquent; (D) Delinquency was caused by unavoidable absence of the taxpayer or a person upon whom the taxpayer has heretofore exclusively relied for the preparation of the taxpayer's returns; (E) Delinquency was caused by the destruction by fire or other casualty of the taxpayer's place of business or business records; (F) The taxpayer proves that the taxpayer made timely application to the department for the proper tax forms, and these were not furnished the taxpayer in sufficient time to permit the executed return to be filed on or before the due date; (G) The taxpayer proves that the taxpayer personally visited an office of the department before the expiration of the time within which to file the required return for the purpose of securing information or aid to properly make out the taxpayer's return and, through no fault of the taxpayer, was unable to secure such information or aid; (H) Delinquency was a result of the taxpayer's failure to enclose a negotiable instrument, as defined by the Uniform Commercial Code, compiled in title 47, with the taxpayer's timely filed return, and the taxpayer promptly responds to a request for payment upon notification thereof, and satisfactorily demonstrates such failure was due to an inadvertent oversight or error; or (I) Delinquency becomes apparent when the taxpayer voluntarily pays the tax but, for any legal reason, the department would be unable to enforce collection, such as the collection would be barred by the statute of limitations, the lack of jurisdiction or other similar reason. (2) If the cause for the delinquency does not comport with any of the causes provided for in subdivision (d)(1), or if the delinquency is of more than thirty (30) days' duration, a determination may be made, nevertheless, as to whether the statement of facts submitted by the taxpayer, or known to the commissioner, establishes a good and reasonable cause. Any cause for a delinquency may be accepted as a good and reasonable cause that appears to the commissioner to justify a conclusion by the commissioner that the taxpayer has done everything the taxpayer could reasonably be expected to do as an ordinarily intelligent and reasonably prudent business person, and that clearly negates either a willful disregard of the law or gross negligence. (3) Notwithstanding subdivisions (d)(1) and (2), the commissioner may accept as good and reasonable cause for waiver of a delinquency penalty the fact that the taxpayer has timely filed and paid such tax for a period of at least two (2) years next preceding the due date of the delinquent return and payment, if the specific cause for the delinquency does not constitute a willful disregard of the law or gross negligence. If the taxpayer has filed estimated payments of franchise and excise taxes by the due date as required by § 67-4-2015 for a period of at least two (2) years, but the estimated payments resulted in an underpayment for which penalties and interest accrued, the commissioner may consider such estimated payments to be filed in a timely manner for purposes of establishing good and reasonable cause under this subdivision (d)(3).
(1) In the case of a tax delinquency of not more than thirty (30) days, which is constituted by a failure to file a return and pay the tax within not more than thirty (30) days after the time prescribed by law, the following specific causes, if clearly established by the taxpayer, shall be acceptable as good and reasonable cause for the waiver of penalty: (A) Return was timely mailed, but for reasons either known or unknown was not timely received or not received at all, and the taxpayer satisfactorily explains noncompliance within § 67-1-107 ; (B) Delinquency was due to erroneous information given the taxpayer by an official charged with the enforcement of this state's tax statutes; (C) Delinquency was attributable to an intervening providential cause, such as, but not limited to, the occurrence of a disabling injury, illness, or death of the taxpayer, or a member of the taxpayer's immediate family, or of a person upon whom the taxpayer has heretofore exclusively relied for the preparation of the taxpayer's returns, and such intervening cause occurred prior to the date on which the required return and payment would otherwise be deemed delinquent; (D) Delinquency was caused by unavoidable absence of the taxpayer or a person upon whom the taxpayer has heretofore exclusively relied for the preparation of the taxpayer's returns; (E) Delinquency was caused by the destruction by fire or other casualty of the taxpayer's place of business or business records; (F) The taxpayer proves that the taxpayer made timely application to the department for the proper tax forms, and these were not furnished the taxpayer in sufficient time to permit the executed return to be filed on or before the due date; (G) The taxpayer proves that the taxpayer personally visited an office of the department before the expiration of the time within which to file the required return for the purpose of securing information or aid to properly make out the taxpayer's return and, through no fault of the taxpayer, was unable to secure such information or aid; (H) Delinquency was a result of the taxpayer's failure to enclose a negotiable instrument, as defined by the Uniform Commercial Code, compiled in title 47, with the taxpayer's timely filed return, and the taxpayer promptly responds to a request for payment upon notification thereof, and satisfactorily demonstrates such failure was due to an inadvertent oversight or error; or (I) Delinquency becomes apparent when the taxpayer voluntarily pays the tax but, for any legal reason, the department would be unable to enforce collection, such as the collection would be barred by the statute of limitations, the lack of jurisdiction or other similar reason.
(A) Return was timely mailed, but for reasons either known or unknown was not timely received or not received at all, and the taxpayer satisfactorily explains noncompliance within § 67-1-107 ;
(B) Delinquency was due to erroneous information given the taxpayer by an official charged with the enforcement of this state's tax statutes;
(C) Delinquency was attributable to an intervening providential cause, such as, but not limited to, the occurrence of a disabling injury, illness, or death of the taxpayer, or a member of the taxpayer's immediate family, or of a person upon whom the taxpayer has heretofore exclusively relied for the preparation of the taxpayer's returns, and such intervening cause occurred prior to the date on which the required return and payment would otherwise be deemed delinquent;
(D) Delinquency was caused by unavoidable absence of the taxpayer or a person upon whom the taxpayer has heretofore exclusively relied for the preparation of the taxpayer's returns;
(E) Delinquency was caused by the destruction by fire or other casualty of the taxpayer's place of business or business records;
(F) The taxpayer proves that the taxpayer made timely application to the department for the proper tax forms, and these were not furnished the taxpayer in sufficient time to permit the executed return to be filed on or before the due date;
(G) The taxpayer proves that the taxpayer personally visited an office of the department before the expiration of the time within which to file the required return for the purpose of securing information or aid to properly make out the taxpayer's return and, through no fault of the taxpayer, was unable to secure such information or aid;
(H) Delinquency was a result of the taxpayer's failure to enclose a negotiable instrument, as defined by the Uniform Commercial Code, compiled in title 47, with the taxpayer's timely filed return, and the taxpayer promptly responds to a request for payment upon notification thereof, and satisfactorily demonstrates such failure was due to an inadvertent oversight or error; or
(I) Delinquency becomes apparent when the taxpayer voluntarily pays the tax but, for any legal reason, the department would be unable to enforce collection, such as the collection would be barred by the statute of limitations, the lack of jurisdiction or other similar reason.
(2) If the cause for the delinquency does not comport with any of the causes provided for in subdivision (d)(1), or if the delinquency is of more than thirty (30) days' duration, a determination may be made, nevertheless, as to whether the statement of facts submitted by the taxpayer, or known to the commissioner, establishes a good and reasonable cause. Any cause for a delinquency may be accepted as a good and reasonable cause that appears to the commissioner to justify a conclusion by the commissioner that the taxpayer has done everything the taxpayer could reasonably be expected to do as an ordinarily intelligent and reasonably prudent business person, and that clearly negates either a willful disregard of the law or gross negligence.
(3) Notwithstanding subdivisions (d)(1) and (2), the commissioner may accept as good and reasonable cause for waiver of a delinquency penalty the fact that the taxpayer has timely filed and paid such tax for a period of at least two (2) years next preceding the due date of the delinquent return and payment, if the specific cause for the delinquency does not constitute a willful disregard of the law or gross negligence. If the taxpayer has filed estimated payments of franchise and excise taxes by the due date as required by § 67-4-2015 for a period of at least two (2) years, but the estimated payments resulted in an underpayment for which penalties and interest accrued, the commissioner may consider such estimated payments to be filed in a timely manner for purposes of establishing good and reasonable cause under this subdivision (d)(3).
(e) (1) There shall be no judicial review of the commissioner's action upon applications for waiver of penalty as authorized in subsection (a) otherwise than as provided in part 9 of this chapter. (2) The commissioner's action upon all applications for waiver of penalty made under this section shall be deemed final. (3) Prior determinations of the attorney general and reporter as to what constitutes good and reasonable cause for a deficiency shall serve as a guide and standard of reference for future decisions whenever those determinations may be applicable to the specific cause established. (4) (A) The commissioner is authorized, in the commissioner's discretion, to designate subordinate officials in the department to waive, on the commissioner's behalf, penalties in amounts of five thousand dollars ($5,000) or less. (B) The commissioner is authorized, in the commissioner's discretion, to waive penalties in amounts of fifteen thousand dollars ($15,000) or less. (C) The commissioner is authorized, in the commissioner's discretion, to waive penalties in amounts of more than fifteen thousand dollars ($15,000); provided, that the attorney general and reporter may require that such waivers or any class of such waivers be subject to the attorney general and reporter's prior review and approval.
(1) There shall be no judicial review of the commissioner's action upon applications for waiver of penalty as authorized in subsection (a) otherwise than as provided in part 9 of this chapter.
(2) The commissioner's action upon all applications for waiver of penalty made under this section shall be deemed final.
(3) Prior determinations of the attorney general and reporter as to what constitutes good and reasonable cause for a deficiency shall serve as a guide and standard of reference for future decisions whenever those determinations may be applicable to the specific cause established.
(4) (A) The commissioner is authorized, in the commissioner's discretion, to designate subordinate officials in the department to waive, on the commissioner's behalf, penalties in amounts of five thousand dollars ($5,000) or less. (B) The commissioner is authorized, in the commissioner's discretion, to waive penalties in amounts of fifteen thousand dollars ($15,000) or less. (C) The commissioner is authorized, in the commissioner's discretion, to waive penalties in amounts of more than fifteen thousand dollars ($15,000); provided, that the attorney general and reporter may require that such waivers or any class of such waivers be subject to the attorney general and reporter's prior review and approval.
(A) The commissioner is authorized, in the commissioner's discretion, to designate subordinate officials in the department to waive, on the commissioner's behalf, penalties in amounts of five thousand dollars ($5,000) or less.
(B) The commissioner is authorized, in the commissioner's discretion, to waive penalties in amounts of fifteen thousand dollars ($15,000) or less.
(C) The commissioner is authorized, in the commissioner's discretion, to waive penalties in amounts of more than fifteen thousand dollars ($15,000); provided, that the attorney general and reporter may require that such waivers or any class of such waivers be subject to the attorney general and reporter's prior review and approval.
Amended by 2016 Tenn. Acts, ch. 881,s 1, eff. 4/27/2016.
Amended by 2015 Tenn. Acts, ch. 514,s 2, eff. 7/1/2016.
Acts 1921, ch. 113, § 2; impl. am. Acts 1923, ch. 7, §§ 19, 24; Acts 1923, ch. 106, § 1; Shan. Supp., § 809a8; Code 1932, § 1478; impl. am. Acts 1937, ch. 33, § 50; impl. am. Acts 1959, ch. 9, § 14; Acts 1965, ch. 5, § 1; 1965, ch. 154, § 1; 1970, ch. 500, § 2; 1970, ch. 559, § 4; 1973, ch. 151, § 1; 1973, ch. 368, § 1; 1973, ch. 373, § 1; 1977, ch. 106, § 1; 1978, ch. 599, § 1; 1980, ch. 460, § 1; 1981, ch. 34, § 1; 1983, ch. 148, § 1; T.C.A. (orig. ed.), § 67-101(5); Acts 1984, ch. 550, § 1; 1984, ch. 832, § 2; 1988, ch. 526, § 8; 1992, ch. 626, § 1; 2011, ch. 467, § 9.
Tenn. Code Ann. § 67-5-1515 — TN Code / Title 67 / Chapter 5 / Section 67-5-1515
[Enactment contingent on county approval. See the Compiler's Notes.] Tax freezes for qualified senior citizens
Status: in_force

(a) As a matter of public function and for the purposes contained only in this section, the county trustee in any county having a population greater than eight hundred ninety thousand (890,000), according to the 2000 federal census or any subsequent federal census, is authorized to own property, enter into leases, and declare any property owned by it exempt from local property taxes. (b) (1) In any county having a population greater than eight hundred ninety thousand (890,000), according to the 2000 federal census or any subsequent federal census, any citizen who is a property owner and taxpayer, referred to as "applicant", designated in this section may apply to the county trustee of such county for senior citizen assessment status: (A) If the applicant has reached the age of seventy (70) years and has been a property owner and taxpayer for at least twenty (20) of the immediate past thirty (30) years during which the applicant's major domicile was located within the state; or (B) If the applicant has reached the age of seventy (70) years and has a combined household annual income of less than twenty-five thousand dollars ($25,000). (2) Upon receipt of the appropriate application and verification of the facts contained therein, the applicant shall be granted senior citizen assessment status by the county trustee of such county. Such status shall entitle the applicant to the right to transfer title and ownership of the applicant's major domicile to the county trustee of such county for a consideration of one dollar ($1.00). A lease for the domicile at an annual rental of one dollar ($1.00) shall be granted to the applicant along with an option to repurchase the domicile for consideration of one dollar ($1.00). The lease and option period shall extend no longer than twenty (20) years and the option may be exercised at any time during this period. If the applicant does not exercise the option to repurchase and the property is held during the entire term of the lease, the property shall revert to the applicant or the applicant's heirs at the end of the lease term. During the lease and option period, the applicant shall pay to the respective county and, if applicable, the municipality an annual sum in lieu of property taxes in an amount equal to the last full tax year's property taxes due immediately prior to the transfer of ownership to the county trustee of such county. (c) The county trustee of any county having a population greater than eight hundred ninety thousand (890,000), according to the 2000 federal census or any subsequent federal census, may charge an applicant a one-time fee to offset the administrative costs of this section, and such fee shall be proportionate to the value of the applicant's property as determined by the assessor of property, except that the fee shall not exceed two hundred fifty dollars ($250). No fees may be charged any applicant whose annual household income is less than twenty-five thousand dollars ($25,000). Acts 2004, ch. 797, § 1; 2005, ch. 342, §§ 1 - 3; 2006, ch. 572, § 1.
(a) As a matter of public function and for the purposes contained only in this section, the county trustee in any county having a population greater than eight hundred ninety thousand (890,000), according to the 2000 federal census or any subsequent federal census, is authorized to own property, enter into leases, and declare any property owned by it exempt from local property taxes.
(b) (1) In any county having a population greater than eight hundred ninety thousand (890,000), according to the 2000 federal census or any subsequent federal census, any citizen who is a property owner and taxpayer, referred to as "applicant", designated in this section may apply to the county trustee of such county for senior citizen assessment status: (A) If the applicant has reached the age of seventy (70) years and has been a property owner and taxpayer for at least twenty (20) of the immediate past thirty (30) years during which the applicant's major domicile was located within the state; or (B) If the applicant has reached the age of seventy (70) years and has a combined household annual income of less than twenty-five thousand dollars ($25,000). (2) Upon receipt of the appropriate application and verification of the facts contained therein, the applicant shall be granted senior citizen assessment status by the county trustee of such county. Such status shall entitle the applicant to the right to transfer title and ownership of the applicant's major domicile to the county trustee of such county for a consideration of one dollar ($1.00). A lease for the domicile at an annual rental of one dollar ($1.00) shall be granted to the applicant along with an option to repurchase the domicile for consideration of one dollar ($1.00). The lease and option period shall extend no longer than twenty (20) years and the option may be exercised at any time during this period. If the applicant does not exercise the option to repurchase and the property is held during the entire term of the lease, the property shall revert to the applicant or the applicant's heirs at the end of the lease term. During the lease and option period, the applicant shall pay to the respective county and, if applicable, the municipality an annual sum in lieu of property taxes in an amount equal to the last full tax year's property taxes due immediately prior to the transfer of ownership to the county trustee of such county.
(1) In any county having a population greater than eight hundred ninety thousand (890,000), according to the 2000 federal census or any subsequent federal census, any citizen who is a property owner and taxpayer, referred to as "applicant", designated in this section may apply to the county trustee of such county for senior citizen assessment status: (A) If the applicant has reached the age of seventy (70) years and has been a property owner and taxpayer for at least twenty (20) of the immediate past thirty (30) years during which the applicant's major domicile was located within the state; or (B) If the applicant has reached the age of seventy (70) years and has a combined household annual income of less than twenty-five thousand dollars ($25,000).
(A) If the applicant has reached the age of seventy (70) years and has been a property owner and taxpayer for at least twenty (20) of the immediate past thirty (30) years during which the applicant's major domicile was located within the state; or
(B) If the applicant has reached the age of seventy (70) years and has a combined household annual income of less than twenty-five thousand dollars ($25,000).
(2) Upon receipt of the appropriate application and verification of the facts contained therein, the applicant shall be granted senior citizen assessment status by the county trustee of such county. Such status shall entitle the applicant to the right to transfer title and ownership of the applicant's major domicile to the county trustee of such county for a consideration of one dollar ($1.00). A lease for the domicile at an annual rental of one dollar ($1.00) shall be granted to the applicant along with an option to repurchase the domicile for consideration of one dollar ($1.00). The lease and option period shall extend no longer than twenty (20) years and the option may be exercised at any time during this period. If the applicant does not exercise the option to repurchase and the property is held during the entire term of the lease, the property shall revert to the applicant or the applicant's heirs at the end of the lease term. During the lease and option period, the applicant shall pay to the respective county and, if applicable, the municipality an annual sum in lieu of property taxes in an amount equal to the last full tax year's property taxes due immediately prior to the transfer of ownership to the county trustee of such county.
(c) The county trustee of any county having a population greater than eight hundred ninety thousand (890,000), according to the 2000 federal census or any subsequent federal census, may charge an applicant a one-time fee to offset the administrative costs of this section, and such fee shall be proportionate to the value of the applicant's property as determined by the assessor of property, except that the fee shall not exceed two hundred fifty dollars ($250). No fees may be charged any applicant whose annual household income is less than twenty-five thousand dollars ($25,000).
Acts 2004, ch. 797, § 1; 2005, ch. 342, §§ 1 - 3; 2006, ch. 572, § 1.
Tenn. Code Ann. § 67-5-2501 — TN Code / Title 67 / Chapter 5 / Section 67-5-2501
Sale of land generally
Status: in_force

(a) (1) The court shall order a sale of the parcel for cash, certified funds, cashier's check, money order, or automated clearing house transfer, as applicable. All sales are subject to the equity of redemption. Such sale may be conducted by internet sale in lieu of public outcry. (2) At the sale, the clerk of the court, acting for the tax entity prosecuting the suit, shall bid the debt ascertained to be due for taxes, interest, and other costs and fees incident to the collection thereof, where no other bidder offers the same or larger bid; provided, that, when the legislative body of a tax entity determines that the environmental risks or financial liabilities associated with the property are such that it is not in the best interests of the tax entity for a minimum bid to be offered at the tax sale, the clerk shall not offer a bid on the property at the tax sale. (3) (A) The tax sale proceeds must be distributed according to the following priorities: (i) Amounts owing the delinquent tax attorneys prosecuting the cause; then (ii) The costs of the proceeding exceeding the attorneys' fees; then (iii) Amounts owing the taxing entities which are parties in the cause; then (iv) Amounts owing to tax entities filing a claim for current and other delinquent taxes and interest due them as stated in claims filed in response to notices sent them pursuant to § 26-5-108 and § 67-5-2416 and for which no action has been filed pursuant to this chapter, divided prorated upon the amount of the base taxes due each; then (v) Any other property taxes and expenses owing any taxing entity secured by a tax lien on the parcel; then (vi) Any remaining proceeds must be distributed in accordance with § 67-5-2702 . (B) If there are not sufficient funds to pay all of the amounts stated in subdivisions (a)(3)(A)(i)-(iii), the tax liens of the taxing entities securing such amounts must lapse upon expiration of the redemption period, it being the intent of the general assembly that a parcel sold at a tax sale be conveyed free of any remaining tax liens other than taxes levied for the current year. However, a taxing entity retains any personal right of action it may have against prior owners of the parcel. (C) If the tax sale is subsequently invalidated or declared void, the lapsed tax liens must be reinstated retroactively. (4) (A) If a taxing entity purchases a parcel pursuant to this section, the taxing entity shall pay to the clerk all amounts owing as court costs, including the amount owing the attorney prosecuting the case, within sixty (60) days after the order confirming the sale becomes final. The taxing entity may by motion request the court for an extension of time in which to pay such amount. The court may grant such extension for such period as the court determines proper not to exceed three (3) years and may award interest to accrue during such extension at a rate determined by the court. In making such determinations, the court shall consider the financial condition of the taxing entity. (B) If the taxing entity determines to retain the parcel, it shall within sixty (60) days of making such determination, pay to the clerk all remaining amounts owing on the parcel. (C) If the parcel is subsequently transferred pursuant to § 67-5-2507 for an amount greater than the court cost paid pursuant to subdivision (a)(4)(A), such excess must be distributed pursuant to § 67-5-2507(a)(6) to the extent funds are available. Any remaining amounts owing on the parcel must be dismissed by the court and the liens securing the same must terminate. (b) (1) The court may order the sale of all or a portion of the taxable personal property constituting a parcel secured by a tax lien. Such sale must be made according to such procedures as may be established by the court. (2) Upon a tax proceeding being filed to enforce a tax lien against real or personal property, any requirement mandating the confidentiality of records pertaining to the parcel terminates. (c) (1) Within five (5) business days after the conclusion of the sale, and prior to confirmation of the sale by the court, the clerk of the court shall immediately file in the case a report of sale or other notice reflecting the results of the tax sale. (2) The clerk of the court shall, concurrently with the filing, file the report or notice with the office of the register of deeds of the county in which the property is located. The report or notice shall set forth all results from the sale, or a separate report or notice may be created for each property sold. (3) The report or notice shall include, at a minimum, the identification of the property and defendants contained in the notice of sale as required by § 67-5-2502 , the name of the successful bidder, and the total successful price bid for each parcel together with the instrument number of the last conveyance of record. (4) The report or notice shall be for notice purposes only and shall not be evidence of transfer of title. (5) Failure to timely record the report or notice shall not provide grounds to set the sale aside. (6) The document shall be exempt from recording fees pursuant to § 8-21-1001 , and shall be indexed by the register under the name of the last owner of record. Amended by 2024 Tenn. Acts, ch. 967,s 17, eff. 9/1/2024. Amended by 2017 Tenn. Acts, ch. 299, s 8, eff. 7/1/2017. Amended by 2017 Tenn. Acts, ch. 299, s 7, eff. 7/1/2017. Amended by 2016 Tenn. Acts, ch. 1085, s 1, eff. 5/20/2016. Amended by 2015 Tenn. Acts, ch. 524, s 1, eff. 1/1/2016. Amended by 2013 Tenn. Acts, ch. 353, s 19, eff. 5/13/2013. Acts 1923, ch. 77, § 8; Shan. Supp., § 913b17; Code 1932, § 1951; Acts 1935, ch. 114, § 1; C. Supp. 1950, § 1591; Acts 1972, ch. 503, § 2; 1973, ch. 296, § 3; 1978, ch. 869, §§ 4, 6-8; 1981, ch. 125, § 1; 1983, ch. 307, § 1; T.C.A. (orig. ed.), § 67-2012; Acts 1996, ch. 787, § 7. This section is set out more than once due to postponed, multiple, or conflicting amendments.
(a) (1) The court shall order a sale of the parcel for cash, certified funds, cashier's check, money order, or automated clearing house transfer, as applicable. All sales are subject to the equity of redemption. Such sale may be conducted by internet sale in lieu of public outcry. (2) At the sale, the clerk of the court, acting for the tax entity prosecuting the suit, shall bid the debt ascertained to be due for taxes, interest, and other costs and fees incident to the collection thereof, where no other bidder offers the same or larger bid; provided, that, when the legislative body of a tax entity determines that the environmental risks or financial liabilities associated with the property are such that it is not in the best interests of the tax entity for a minimum bid to be offered at the tax sale, the clerk shall not offer a bid on the property at the tax sale. (3) (A) The tax sale proceeds must be distributed according to the following priorities: (i) Amounts owing the delinquent tax attorneys prosecuting the cause; then (ii) The costs of the proceeding exceeding the attorneys' fees; then (iii) Amounts owing the taxing entities which are parties in the cause; then (iv) Amounts owing to tax entities filing a claim for current and other delinquent taxes and interest due them as stated in claims filed in response to notices sent them pursuant to § 26-5-108 and § 67-5-2416 and for which no action has been filed pursuant to this chapter, divided prorated upon the amount of the base taxes due each; then (v) Any other property taxes and expenses owing any taxing entity secured by a tax lien on the parcel; then (vi) Any remaining proceeds must be distributed in accordance with § 67-5-2702 . (B) If there are not sufficient funds to pay all of the amounts stated in subdivisions (a)(3)(A)(i)-(iii), the tax liens of the taxing entities securing such amounts must lapse upon expiration of the redemption period, it being the intent of the general assembly that a parcel sold at a tax sale be conveyed free of any remaining tax liens other than taxes levied for the current year. However, a taxing entity retains any personal right of action it may have against prior owners of the parcel. (C) If the tax sale is subsequently invalidated or declared void, the lapsed tax liens must be reinstated retroactively. (4) (A) If a taxing entity purchases a parcel pursuant to this section, the taxing entity shall pay to the clerk all amounts owing as court costs, including the amount owing the attorney prosecuting the case, within sixty (60) days after the order confirming the sale becomes final. The taxing entity may by motion request the court for an extension of time in which to pay such amount. The court may grant such extension for such period as the court determines proper not to exceed three (3) years and may award interest to accrue during such extension at a rate determined by the court. In making such determinations, the court shall consider the financial condition of the taxing entity. (B) If the taxing entity determines to retain the parcel, it shall within sixty (60) days of making such determination, pay to the clerk all remaining amounts owing on the parcel. (C) If the parcel is subsequently transferred pursuant to § 67-5-2507 for an amount greater than the court cost paid pursuant to subdivision (a)(4)(A), such excess must be distributed pursuant to § 67-5-2507(a)(6) to the extent funds are available. Any remaining amounts owing on the parcel must be dismissed by the court and the liens securing the same must terminate.
(1) The court shall order a sale of the parcel for cash, certified funds, cashier's check, money order, or automated clearing house transfer, as applicable. All sales are subject to the equity of redemption. Such sale may be conducted by internet sale in lieu of public outcry.
(2) At the sale, the clerk of the court, acting for the tax entity prosecuting the suit, shall bid the debt ascertained to be due for taxes, interest, and other costs and fees incident to the collection thereof, where no other bidder offers the same or larger bid; provided, that, when the legislative body of a tax entity determines that the environmental risks or financial liabilities associated with the property are such that it is not in the best interests of the tax entity for a minimum bid to be offered at the tax sale, the clerk shall not offer a bid on the property at the tax sale.
(3) (A) The tax sale proceeds must be distributed according to the following priorities: (i) Amounts owing the delinquent tax attorneys prosecuting the cause; then (ii) The costs of the proceeding exceeding the attorneys' fees; then (iii) Amounts owing the taxing entities which are parties in the cause; then (iv) Amounts owing to tax entities filing a claim for current and other delinquent taxes and interest due them as stated in claims filed in response to notices sent them pursuant to § 26-5-108 and § 67-5-2416 and for which no action has been filed pursuant to this chapter, divided prorated upon the amount of the base taxes due each; then (v) Any other property taxes and expenses owing any taxing entity secured by a tax lien on the parcel; then (vi) Any remaining proceeds must be distributed in accordance with § 67-5-2702 . (B) If there are not sufficient funds to pay all of the amounts stated in subdivisions (a)(3)(A)(i)-(iii), the tax liens of the taxing entities securing such amounts must lapse upon expiration of the redemption period, it being the intent of the general assembly that a parcel sold at a tax sale be conveyed free of any remaining tax liens other than taxes levied for the current year. However, a taxing entity retains any personal right of action it may have against prior owners of the parcel. (C) If the tax sale is subsequently invalidated or declared void, the lapsed tax liens must be reinstated retroactively.
(A) The tax sale proceeds must be distributed according to the following priorities: (i) Amounts owing the delinquent tax attorneys prosecuting the cause; then (ii) The costs of the proceeding exceeding the attorneys' fees; then (iii) Amounts owing the taxing entities which are parties in the cause; then (iv) Amounts owing to tax entities filing a claim for current and other delinquent taxes and interest due them as stated in claims filed in response to notices sent them pursuant to § 26-5-108 and § 67-5-2416 and for which no action has been filed pursuant to this chapter, divided prorated upon the amount of the base taxes due each; then (v) Any other property taxes and expenses owing any taxing entity secured by a tax lien on the parcel; then (vi) Any remaining proceeds must be distributed in accordance with § 67-5-2702 .
(i) Amounts owing the delinquent tax attorneys prosecuting the cause; then
(ii) The costs of the proceeding exceeding the attorneys' fees; then
(iii) Amounts owing the taxing entities which are parties in the cause; then
(iv) Amounts owing to tax entities filing a claim for current and other delinquent taxes and interest due them as stated in claims filed in response to notices sent them pursuant to § 26-5-108 and § 67-5-2416 and for which no action has been filed pursuant to this chapter, divided prorated upon the amount of the base taxes due each; then
(v) Any other property taxes and expenses owing any taxing entity secured by a tax lien on the parcel; then
(vi) Any remaining proceeds must be distributed in accordance with § 67-5-2702 .
(B) If there are not sufficient funds to pay all of the amounts stated in subdivisions (a)(3)(A)(i)-(iii), the tax liens of the taxing entities securing such amounts must lapse upon expiration of the redemption period, it being the intent of the general assembly that a parcel sold at a tax sale be conveyed free of any remaining tax liens other than taxes levied for the current year. However, a taxing entity retains any personal right of action it may have against prior owners of the parcel.
(C) If the tax sale is subsequently invalidated or declared void, the lapsed tax liens must be reinstated retroactively.
(4) (A) If a taxing entity purchases a parcel pursuant to this section, the taxing entity shall pay to the clerk all amounts owing as court costs, including the amount owing the attorney prosecuting the case, within sixty (60) days after the order confirming the sale becomes final. The taxing entity may by motion request the court for an extension of time in which to pay such amount. The court may grant such extension for such period as the court determines proper not to exceed three (3) years and may award interest to accrue during such extension at a rate determined by the court. In making such determinations, the court shall consider the financial condition of the taxing entity. (B) If the taxing entity determines to retain the parcel, it shall within sixty (60) days of making such determination, pay to the clerk all remaining amounts owing on the parcel. (C) If the parcel is subsequently transferred pursuant to § 67-5-2507 for an amount greater than the court cost paid pursuant to subdivision (a)(4)(A), such excess must be distributed pursuant to § 67-5-2507(a)(6) to the extent funds are available. Any remaining amounts owing on the parcel must be dismissed by the court and the liens securing the same must terminate.
(A) If a taxing entity purchases a parcel pursuant to this section, the taxing entity shall pay to the clerk all amounts owing as court costs, including the amount owing the attorney prosecuting the case, within sixty (60) days after the order confirming the sale becomes final. The taxing entity may by motion request the court for an extension of time in which to pay such amount. The court may grant such extension for such period as the court determines proper not to exceed three (3) years and may award interest to accrue during such extension at a rate determined by the court. In making such determinations, the court shall consider the financial condition of the taxing entity.
(B) If the taxing entity determines to retain the parcel, it shall within sixty (60) days of making such determination, pay to the clerk all remaining amounts owing on the parcel.
(C) If the parcel is subsequently transferred pursuant to § 67-5-2507 for an amount greater than the court cost paid pursuant to subdivision (a)(4)(A), such excess must be distributed pursuant to § 67-5-2507(a)(6) to the extent funds are available. Any remaining amounts owing on the parcel must be dismissed by the court and the liens securing the same must terminate.
(b) (1) The court may order the sale of all or a portion of the taxable personal property constituting a parcel secured by a tax lien. Such sale must be made according to such procedures as may be established by the court. (2) Upon a tax proceeding being filed to enforce a tax lien against real or personal property, any requirement mandating the confidentiality of records pertaining to the parcel terminates.
(1) The court may order the sale of all or a portion of the taxable personal property constituting a parcel secured by a tax lien. Such sale must be made according to such procedures as may be established by the court.
(2) Upon a tax proceeding being filed to enforce a tax lien against real or personal property, any requirement mandating the confidentiality of records pertaining to the parcel terminates.
(c) (1) Within five (5) business days after the conclusion of the sale, and prior to confirmation of the sale by the court, the clerk of the court shall immediately file in the case a report of sale or other notice reflecting the results of the tax sale. (2) The clerk of the court shall, concurrently with the filing, file the report or notice with the office of the register of deeds of the county in which the property is located. The report or notice shall set forth all results from the sale, or a separate report or notice may be created for each property sold. (3) The report or notice shall include, at a minimum, the identification of the property and defendants contained in the notice of sale as required by § 67-5-2502 , the name of the successful bidder, and the total successful price bid for each parcel together with the instrument number of the last conveyance of record. (4) The report or notice shall be for notice purposes only and shall not be evidence of transfer of title. (5) Failure to timely record the report or notice shall not provide grounds to set the sale aside. (6) The document shall be exempt from recording fees pursuant to § 8-21-1001 , and shall be indexed by the register under the name of the last owner of record.
(1) Within five (5) business days after the conclusion of the sale, and prior to confirmation of the sale by the court, the clerk of the court shall immediately file in the case a report of sale or other notice reflecting the results of the tax sale.
(2) The clerk of the court shall, concurrently with the filing, file the report or notice with the office of the register of deeds of the county in which the property is located. The report or notice shall set forth all results from the sale, or a separate report or notice may be created for each property sold.
(3) The report or notice shall include, at a minimum, the identification of the property and defendants contained in the notice of sale as required by § 67-5-2502 , the name of the successful bidder, and the total successful price bid for each parcel together with the instrument number of the last conveyance of record.
(4) The report or notice shall be for notice purposes only and shall not be evidence of transfer of title.
(5) Failure to timely record the report or notice shall not provide grounds to set the sale aside.
(6) The document shall be exempt from recording fees pursuant to § 8-21-1001 , and shall be indexed by the register under the name of the last owner of record.
Amended by 2024 Tenn. Acts, ch. 967,s 17, eff. 9/1/2024.
Amended by 2017 Tenn. Acts, ch. 299, s 8, eff. 7/1/2017.
Amended by 2017 Tenn. Acts, ch. 299, s 7, eff. 7/1/2017.
Amended by 2016 Tenn. Acts, ch. 1085, s 1, eff. 5/20/2016.
Amended by 2015 Tenn. Acts, ch. 524, s 1, eff. 1/1/2016.
Amended by 2013 Tenn. Acts, ch. 353, s 19, eff. 5/13/2013.
Acts 1923, ch. 77, § 8; Shan. Supp., § 913b17; Code 1932, § 1951; Acts 1935, ch. 114, § 1; C. Supp. 1950, § 1591; Acts 1972, ch. 503, § 2; 1973, ch. 296, § 3; 1978, ch. 869, §§ 4, 6-8; 1981, ch. 125, § 1; 1983, ch. 307, § 1; T.C.A. (orig. ed.), § 67-2012; Acts 1996, ch. 787, § 7.
This section is set out more than once due to postponed, multiple, or conflicting amendments.
Tenn. Code Ann. § 67-5-1701 — TN Code / Title 67 / Chapter 5 / Section 67-5-1701
General provisions
Status: in_force

(a) (1) Upon a general reappraisal of property as determined by the state board of equalization, the county assessor of property shall certify to the governing bodies of the county and of each municipality within the county the total assessed value of taxable property within the jurisdiction of each governing body. (2) The assessor shall also furnish each governing body an estimate of the total assessed value of all new construction and improvements not included on the previous assessment roll and the assessed value of deletions from the previous assessment roll. (3) Exclusive of such new construction, improvements and deletions, each governing body, in the event of a general reappraisal as determined by the state board, shall determine and certify a tax rate which will provide the same ad valorem revenue for that jurisdiction as was levied during the previous year. (4) For the purpose of calculating the certified rate, the governing body shall use the taxable value appearing on the roll exclusive of taxable value of properties appearing for the first time on the assessment roll. The governing body may also exclude from the taxable value appearing on the roll: (A) The taxable value of properties subject to tax increment financing provisions adopted by the governing body pursuant to title 13, chapter 20, part 2; and (B) The taxable value of properties within an area for which an economic impact plan has been approved by the governing body pursuant to § 7-53-312 or § 7-53-314 . (5) In calculating the certified tax rate, the governing body of the county or municipality may adjust the calculation, according to a method approved by the state board of equalization, to reflect extraordinary assessment changes anticipated from appeals to the state or local boards of equalization. The state board of equalization shall order recapture of an excessive adjustment in the following year if the certified tax rate is found to have been overstated due to overestimation of the appeals adjustment, and in these cases the jurisdiction may exceed the recapture rate only after public hearing. (b) (1) The state board is authorized to establish policies providing a procedure or formula for calculating the certified tax rate. (2) Prior to final determination of the certified tax rate by the governing body, a proposed certified tax rate, including the calculations used to compute the proposed certified tax rate, shall be submitted to the executive secretary of the state board for review in accordance with policies established by the board. (3) The executive secretary shall immediately acknowledge receipt in writing of the proposed certified tax rate and supporting calculations. (4) The executive secretary may report to the governing body the results of such review. (5) After receiving the report of the executive secretary or after fifteen (15) days from the date the proposed certified tax rate and supporting calculations are received by the executive secretary, whichever occurs first, the governing body shall finally determine the proposed certified tax rate, which may be adjusted in accordance with the report, if any, of the executive secretary, as the certified tax rate. (c) This part shall be applicable upon the application of a current value index or other plan approved by the state board for general updating of real property values. Amended by 2018 Tenn. Acts, ch. 911,s 1, eff. 5/1/2018. Acts 1979, ch. 253, § 1; 1982, ch. 593, § 1; T.C.A., § 67-1016; Acts 1989, ch. 495, § 7; 1997, ch. 218, § 1.
(a) (1) Upon a general reappraisal of property as determined by the state board of equalization, the county assessor of property shall certify to the governing bodies of the county and of each municipality within the county the total assessed value of taxable property within the jurisdiction of each governing body. (2) The assessor shall also furnish each governing body an estimate of the total assessed value of all new construction and improvements not included on the previous assessment roll and the assessed value of deletions from the previous assessment roll. (3) Exclusive of such new construction, improvements and deletions, each governing body, in the event of a general reappraisal as determined by the state board, shall determine and certify a tax rate which will provide the same ad valorem revenue for that jurisdiction as was levied during the previous year. (4) For the purpose of calculating the certified rate, the governing body shall use the taxable value appearing on the roll exclusive of taxable value of properties appearing for the first time on the assessment roll. The governing body may also exclude from the taxable value appearing on the roll: (A) The taxable value of properties subject to tax increment financing provisions adopted by the governing body pursuant to title 13, chapter 20, part 2; and (B) The taxable value of properties within an area for which an economic impact plan has been approved by the governing body pursuant to § 7-53-312 or § 7-53-314 . (5) In calculating the certified tax rate, the governing body of the county or municipality may adjust the calculation, according to a method approved by the state board of equalization, to reflect extraordinary assessment changes anticipated from appeals to the state or local boards of equalization. The state board of equalization shall order recapture of an excessive adjustment in the following year if the certified tax rate is found to have been overstated due to overestimation of the appeals adjustment, and in these cases the jurisdiction may exceed the recapture rate only after public hearing.
(1) Upon a general reappraisal of property as determined by the state board of equalization, the county assessor of property shall certify to the governing bodies of the county and of each municipality within the county the total assessed value of taxable property within the jurisdiction of each governing body.
(2) The assessor shall also furnish each governing body an estimate of the total assessed value of all new construction and improvements not included on the previous assessment roll and the assessed value of deletions from the previous assessment roll.
(3) Exclusive of such new construction, improvements and deletions, each governing body, in the event of a general reappraisal as determined by the state board, shall determine and certify a tax rate which will provide the same ad valorem revenue for that jurisdiction as was levied during the previous year.
(4) For the purpose of calculating the certified rate, the governing body shall use the taxable value appearing on the roll exclusive of taxable value of properties appearing for the first time on the assessment roll. The governing body may also exclude from the taxable value appearing on the roll: (A) The taxable value of properties subject to tax increment financing provisions adopted by the governing body pursuant to title 13, chapter 20, part 2; and (B) The taxable value of properties within an area for which an economic impact plan has been approved by the governing body pursuant to § 7-53-312 or § 7-53-314 .
(A) The taxable value of properties subject to tax increment financing provisions adopted by the governing body pursuant to title 13, chapter 20, part 2; and
(B) The taxable value of properties within an area for which an economic impact plan has been approved by the governing body pursuant to § 7-53-312 or § 7-53-314 .
(5) In calculating the certified tax rate, the governing body of the county or municipality may adjust the calculation, according to a method approved by the state board of equalization, to reflect extraordinary assessment changes anticipated from appeals to the state or local boards of equalization. The state board of equalization shall order recapture of an excessive adjustment in the following year if the certified tax rate is found to have been overstated due to overestimation of the appeals adjustment, and in these cases the jurisdiction may exceed the recapture rate only after public hearing.
(b) (1) The state board is authorized to establish policies providing a procedure or formula for calculating the certified tax rate. (2) Prior to final determination of the certified tax rate by the governing body, a proposed certified tax rate, including the calculations used to compute the proposed certified tax rate, shall be submitted to the executive secretary of the state board for review in accordance with policies established by the board. (3) The executive secretary shall immediately acknowledge receipt in writing of the proposed certified tax rate and supporting calculations. (4) The executive secretary may report to the governing body the results of such review. (5) After receiving the report of the executive secretary or after fifteen (15) days from the date the proposed certified tax rate and supporting calculations are received by the executive secretary, whichever occurs first, the governing body shall finally determine the proposed certified tax rate, which may be adjusted in accordance with the report, if any, of the executive secretary, as the certified tax rate.
(1) The state board is authorized to establish policies providing a procedure or formula for calculating the certified tax rate.
(2) Prior to final determination of the certified tax rate by the governing body, a proposed certified tax rate, including the calculations used to compute the proposed certified tax rate, shall be submitted to the executive secretary of the state board for review in accordance with policies established by the board.
(3) The executive secretary shall immediately acknowledge receipt in writing of the proposed certified tax rate and supporting calculations.
(4) The executive secretary may report to the governing body the results of such review.
(5) After receiving the report of the executive secretary or after fifteen (15) days from the date the proposed certified tax rate and supporting calculations are received by the executive secretary, whichever occurs first, the governing body shall finally determine the proposed certified tax rate, which may be adjusted in accordance with the report, if any, of the executive secretary, as the certified tax rate.
(c) This part shall be applicable upon the application of a current value index or other plan approved by the state board for general updating of real property values.
Amended by 2018 Tenn. Acts, ch. 911,s 1, eff. 5/1/2018.
Acts 1979, ch. 253, § 1; 1982, ch. 593, § 1; T.C.A., § 67-1016; Acts 1989, ch. 495, § 7; 1997, ch. 218, § 1.
Tenn. Code Ann. § 67-1-118 — TN Code / Title 67 / Chapter 1 / Section 67-1-118
Review and report concerning credits found in sections 67-4-2009, 67-4-2109, and 67-6-224
Status: in_force

The commissioner of economic and community development, in consultation with the commissioner of revenue, shall conduct a review of the credits found in §§ 67-4-2009 , 67-4-2109 , and 67-6-224 . The review shall evaluate the previous four (4) fiscal years and may include an evaluation of the purpose of the credit, foregone revenue to the state as a result of the credit, any benefits provided to the state as a result of the credit, and the estimated indirect economic impact of the tax credit, where applicable. The report shall include a recommendation to modify, discontinue, or take no action with respect to each credit. The departments shall prepare a report of their findings and recommendations and shall deliver such report to the governor, the speakers of both houses, the finance, ways and means committees of both houses, and the office of legislative budget analysis no later than January 15, 2017. The review required by this section shall be conducted by the departments, and the report delivered to the governor, the speakers of both houses, the finance, ways and means committees of both houses, and the office of legislative budget analysis, each four (4) years thereafter. Added by 2015 Tenn. Acts, ch. 504, s 1, eff. 7/1/2015.
The commissioner of economic and community development, in consultation with the commissioner of revenue, shall conduct a review of the credits found in §§ 67-4-2009 , 67-4-2109 , and 67-6-224 . The review shall evaluate the previous four (4) fiscal years and may include an evaluation of the purpose of the credit, foregone revenue to the state as a result of the credit, any benefits provided to the state as a result of the credit, and the estimated indirect economic impact of the tax credit, where applicable. The report shall include a recommendation to modify, discontinue, or take no action with respect to each credit. The departments shall prepare a report of their findings and recommendations and shall deliver such report to the governor, the speakers of both houses, the finance, ways and means committees of both houses, and the office of legislative budget analysis no later than January 15, 2017. The review required by this section shall be conducted by the departments, and the report delivered to the governor, the speakers of both houses, the finance, ways and means committees of both houses, and the office of legislative budget analysis, each four (4) years thereafter.
Added by 2015 Tenn. Acts, ch. 504, s 1, eff. 7/1/2015.
Tenn. Code Ann. § 67-1-307 — TN Code / Title 67 / Chapter 1 / Section 67-1-307
Technical assistance to counties
Status: in_force

(a) (1) The board is authorized to contract with the governing body of any county, or the governing body of any incorporated city or town, to furnish to any county or incorporated city or town such personnel, supplies, funds and technical assistance as may be needed to carry out a program of assessment, reassessment or equalization of property taxes. (2) Upon the petition by a municipality that lies within the boundaries of two (2) or more counties, the board may enter into a contract with such municipality to provide the assessment services allowed under § 67-1-513 . (3) No contracts authorized by this section shall be entered into after January 1, 1974, by the board with any governing body other than those of counties, except that the board may enter into contracts with municipalities that lie within the boundaries of two (2) or more counties and who petition for assessment services allowed under § 67-1-513 . (b) The board shall establish rules and regulations that shall constitute a part of every contract of assistance. Such rules and regulations shall provide that the over-all cost incurred by the board shall be repaid to the board and shall state the terms and conditions on which such assistance shall be rendered including the interest charge, if any, on loans made, and such other rules and regulations as will adequately ensure the satisfactory completion of such programs. (c) All funds appropriated to the board for the purpose of carrying out this section shall be kept in a special account by the board from which assistance shall be rendered, and funds repaid to the board under any contract shall be credited to the account and applied to any lawful obligation of the account. (d) In the event of a default by a county, town or city in the payment or repayment of funds due under a contract, the board shall notify the comptroller of the treasury of the default and the amount of the default; it shall then be the duty of the comptroller of the treasury to have paid over to the board out of any state-shared taxes due the defaulting county, city or town sums sufficient to pay the amount in arrears under the contract. (e) The assistance authorized by this section shall be supplemental to and administered separately from that authorized by title 4, chapter 3, part 51. Acts 1973, ch. 226, § 2; impl. am. Acts 1978, ch. 934, §§ 7, 36; Acts 1983, ch. 236, § 2; T.C.A., §§ 67-207 -- 67-211; Acts 1984, ch. 832, § 3.
(a) (1) The board is authorized to contract with the governing body of any county, or the governing body of any incorporated city or town, to furnish to any county or incorporated city or town such personnel, supplies, funds and technical assistance as may be needed to carry out a program of assessment, reassessment or equalization of property taxes. (2) Upon the petition by a municipality that lies within the boundaries of two (2) or more counties, the board may enter into a contract with such municipality to provide the assessment services allowed under § 67-1-513 . (3) No contracts authorized by this section shall be entered into after January 1, 1974, by the board with any governing body other than those of counties, except that the board may enter into contracts with municipalities that lie within the boundaries of two (2) or more counties and who petition for assessment services allowed under § 67-1-513 .
(1) The board is authorized to contract with the governing body of any county, or the governing body of any incorporated city or town, to furnish to any county or incorporated city or town such personnel, supplies, funds and technical assistance as may be needed to carry out a program of assessment, reassessment or equalization of property taxes.
(2) Upon the petition by a municipality that lies within the boundaries of two (2) or more counties, the board may enter into a contract with such municipality to provide the assessment services allowed under § 67-1-513 .
(3) No contracts authorized by this section shall be entered into after January 1, 1974, by the board with any governing body other than those of counties, except that the board may enter into contracts with municipalities that lie within the boundaries of two (2) or more counties and who petition for assessment services allowed under § 67-1-513 .
(b) The board shall establish rules and regulations that shall constitute a part of every contract of assistance. Such rules and regulations shall provide that the over-all cost incurred by the board shall be repaid to the board and shall state the terms and conditions on which such assistance shall be rendered including the interest charge, if any, on loans made, and such other rules and regulations as will adequately ensure the satisfactory completion of such programs.
(c) All funds appropriated to the board for the purpose of carrying out this section shall be kept in a special account by the board from which assistance shall be rendered, and funds repaid to the board under any contract shall be credited to the account and applied to any lawful obligation of the account.
(d) In the event of a default by a county, town or city in the payment or repayment of funds due under a contract, the board shall notify the comptroller of the treasury of the default and the amount of the default; it shall then be the duty of the comptroller of the treasury to have paid over to the board out of any state-shared taxes due the defaulting county, city or town sums sufficient to pay the amount in arrears under the contract.
(e) The assistance authorized by this section shall be supplemental to and administered separately from that authorized by title 4, chapter 3, part 51.
Acts 1973, ch. 226, § 2; impl. am. Acts 1978, ch. 934, §§ 7, 36; Acts 1983, ch. 236, § 2; T.C.A., §§ 67-207 -- 67-211; Acts 1984, ch. 832, § 3.
Tenn. Code Ann. § 67-1-1601 — TN Code / Title 67 / Chapter 1 / Section 67-1-1601
Commissions disallowed on failure to settle or pay over
Status: in_force

Commissions shall not be allowed any collecting officer for collecting and paying over any public money, unless the officer makes settlement and payment as required by law. Code 1858, § 668; Shan., § 961; Code 1932, § 1671; T.C.A. (orig. ed.), § 67-1424.
Commissions shall not be allowed any collecting officer for collecting and paying over any public money, unless the officer makes settlement and payment as required by law.
Code 1858, § 668; Shan., § 961; Code 1932, § 1671; T.C.A. (orig. ed.), § 67-1424.
Tenn. Code Ann. § 67-4-2805 — TN Code / Title 67 / Chapter 4 / Section 67-4-2805
Issuance of stamps to indicate payment of tax - Report of seizure of unauthorized substances
Status: in_force

(a) The commissioner shall issue stamps to affix to unauthorized substances to indicate payment of the tax by the merchant required by this part. A merchant shall report the taxes payable under this part at the time and on the form prescribed by the commissioner. The merchant is not required to give the merchant's name, address, social security number, or any other identifying information on the form. Upon payment of the tax, the commissioner shall issue stamps in an amount equal to the amount of the tax paid. Taxes may be paid and stamps may be issued either by mail or in person. (b) Every local law enforcement agency and every state law enforcement agency must report to the department of revenue within forty-eight (48) hours after seizing an unauthorized substance from or making an arrest of a merchant under this part when the appropriate stamps as required by this part have not been affixed to the unauthorized substances. The report shall be in the manner prescribed by the commissioner and shall include the time and place of the arrest or seizure, the amount, location, and kind of substance, the identification of any merchant and such merchant's social security number, and any other information prescribed by the commissioner. Acts 2004, ch. 803, § 6; 2006, ch. 1019, § 53; 2010, ch. 962, § 1.
(a) The commissioner shall issue stamps to affix to unauthorized substances to indicate payment of the tax by the merchant required by this part. A merchant shall report the taxes payable under this part at the time and on the form prescribed by the commissioner. The merchant is not required to give the merchant's name, address, social security number, or any other identifying information on the form. Upon payment of the tax, the commissioner shall issue stamps in an amount equal to the amount of the tax paid. Taxes may be paid and stamps may be issued either by mail or in person.
(b) Every local law enforcement agency and every state law enforcement agency must report to the department of revenue within forty-eight (48) hours after seizing an unauthorized substance from or making an arrest of a merchant under this part when the appropriate stamps as required by this part have not been affixed to the unauthorized substances. The report shall be in the manner prescribed by the commissioner and shall include the time and place of the arrest or seizure, the amount, location, and kind of substance, the identification of any merchant and such merchant's social security number, and any other information prescribed by the commissioner.
Acts 2004, ch. 803, § 6; 2006, ch. 1019, § 53; 2010, ch. 962, § 1.
Tenn. Code Ann. § 67-6-801 — TN Code / Title 67 / Chapter 6 / Section 67-6-801
Short title
Status: in_force

This part shall be known and may be cited as the "Simplified Sales and Use Tax Administration Act." Acts 2001, ch. 312, § 1.
This part shall be known and may be cited as the "Simplified Sales and Use Tax Administration Act."
Acts 2001, ch. 312, § 1.