Tenn. Code Ann. § 67-5-2003 — TN Code / Title 67 / Chapter 5 / Section 67-5-2003
Collection by distraint and sale of personalty - Actions at law or garnishment
Status: in_force

(a) All delinquent personal property taxes, including but not limited to, public utility personal property taxes, may be immediately collected by the county trustee or collector, with the assistance of the delinquent tax attorney selected pursuant to § 67-5-2404 or § 67-5-2001 , if such delinquent tax attorney's assistance is requested by the trustee or collector. The tax books in the hands of the trustee or collector and the delinquent lists furnished to deputy trustees or the collector's deputies, or the sheriff or constables in any county where the taxpayer or any property liable for the taxes may be found, or the delinquent tax attorney, shall have the force and effect of a judgment and execution from a court of record, and shall be ample authority for the officers or delinquent tax attorney having such taxes for collection to distrain and sell a sufficient amount of the personal property to satisfy the delinquent taxes, interest, penalties, costs and attorneys' fees. However, leased personal property assessed to a lessee shall not be distrained and sold pursuant to this section. (b) These delinquent personal property taxes may be immediately collected by distraint (distress warrant) and sale of any personal property liable therefor, by suit at law against the taxpayer, and/or by garnishment. (c) Prior to distraint (seizure) of any personal property, the trustee, deputy trustee or delinquent tax attorney shall give not less than ten (10) days' written notice of the intended distraint (seizure) by either: (1) Delivering such notice in person; (2) Leaving such notice at the dwelling place or usual place of business of the taxpayer; or (3) By mailing such notice to the taxpayer's last known address. (d) Ten (10) days' notice of the time and place of any sale of personalty shall be given by advertisement posted in three (3) public places in the county, one (1) of which shall be at the courthouse door. In addition, at least ten (10) days' written notice of the sale shall be given to the taxpayer by any of the methods outlined in subsection (c). (e) The officers shall in all cases have the personal property present when sold and shall be allowed to retain in addition to the taxes, interest, penalties, costs, and attorney's fees, all commissions, costs and necessary expenses of removing and keeping the property distrained (expenses of seizure, preservation and storage of the property). (f) Any delinquent tax attorney assisting the trustee shall be allowed attorney's fees, computed as are attorney's fees for collection of real property taxes in § 67-5-2410 . (g) (1) The trustee or collector may turn over the delinquent list thirty (30) days after such taxes become delinquent to the delinquent tax attorney, selected pursuant to § 67-5-2404 or § 67-5-2001 , to file suit to collect delinquent personal property taxes, as part of any pending suit to collect real property taxes, as part of a separate mass lawsuit pursuant to the procedures set forth in this chapter, or as a separate lawsuit. Such can be done without having first issued a distress warrant. (2) In the event the trustee or collector turns over the delinquent list prior to the mailing of the notice pursuant to § 67-5-2402 , the trustee or collector shall be required to forward written notice by first class mail to the last known property owner at least ten (10) days before the delinquent list is turned over to the delinquent tax attorney. (3) If the procedure in this subsection (g) is used, the trustee or collector is also authorized, as with real property tax records, to turn over records to the clerk of court. (4) A judgment of personal liability for unpaid personal property taxes may be enforced as any other judgment, through garnishment, execution, or otherwise, and may also be recorded as a lien in one (1) or more offices of registers of deeds. Any judgment recorded pursuant to this subdivision (g)(4) shall be subject to the same requirements and attributes of judgment liens, including durability, priority, and renewal, and shall thereafter no longer be subject to the statute of limitation established by this chapter for unpaid property taxes. However, the rates of penalty and interest shall continue as established by this chapter, and upon recording of such judgment, the tax entity shall retain the alternative of enforcing its tax lien against the assessed personal property according to the priority and procedures set forth in this chapter. (5) Following entry of a personal judgment for delinquent personal property taxes, a tax entity may enter into a written agreement for the payment of such judgment in installments, pursuant to § 26-2-218 , on such terms as the tax entity may deem appropriate; provided, that such agreement must provide for payment of all taxes, interest, penalties, fees, and costs in full, including any interest and penalties that accrue during the term of the installment payments. (6) Any tax entity may file suit to collect any other taxes it is authorized by law to collect thirty (30) days after such taxes become delinquent, as part of any pending suit to collect property taxes, or as a separate mass lawsuit pursuant to the procedures set forth in this chapter. (h) If any individual, partnership, joint venture, corporation or other legal entity has personal property, tangible or intangible, assessable by the county assessor or other authority, that is sold pursuant to title 47, chapter 9, the party possessing the security interest shall withhold and pay from the proceeds of the sale an amount sufficient to satisfy the personal property taxes assessed under § 67-5-2101 and subject to § 67-5-1805 . A secured party selling the property who fails to withhold and pay such amount shall be held to be personally liable for such amount to the trustee or other collecting official to which these personal property taxes are due, and any action to enforce this subsection (h) must commence against the secured party as a named defendant within four (4) years of the assessment date. Any amount paid by or collected from a secured party pursuant to this subsection (h) shall reduce by that same amount the balance due by the taxpayer to the trustee or other collecting official who has been paid, and such amount shall also become a new obligation of payment by the delinquent taxpayer to the secured party, regardless of contractual limitations to the contrary. The application of § 67-5-1805 to a secured party, and the mechanisms described in this subsection (h), shall be construed as remedial legislation designed to clarify and bring uniformity to existing law regarding the procedure of the apportionment and collection of taxes pursuant to this subsection (h). (i) Delinquent public utility taxes and taxes owed by modern market telecommunications providers shall not be immediately collected under this section if the local assessment includes any real property. The trustee or collector shall confirm with the comptroller of the treasury whether such taxpayer's local assessment includes any real property. Amended by 2017 Tenn. Acts, ch. 490,s 10, eff. 6/6/2017. Amended by 2015 Tenn. Acts, ch. 414,s 4, eff. 5/8/2015. Amended by 2013 Tenn. Acts, ch. 353,Secs.s9, s10, s11 eff. 5/13/2013. Acts 1907, ch. 602, § 49; Shan., §§ 877a1, 877a2; Acts 1923, ch. 77, § 3; Shan. Supp., § 913b2; mod. Code 1932, §§ 1574-1576; C. Supp. 1950, § 1574; T.C.A. (orig. ed.), §§ 67-1305 -- 67-1307; Acts 1987, ch. 346, §§ 6, 17; 1990, ch. 1075, § 11; 2010, ch. 1007, § 2.
(a) All delinquent personal property taxes, including but not limited to, public utility personal property taxes, may be immediately collected by the county trustee or collector, with the assistance of the delinquent tax attorney selected pursuant to § 67-5-2404 or § 67-5-2001 , if such delinquent tax attorney's assistance is requested by the trustee or collector. The tax books in the hands of the trustee or collector and the delinquent lists furnished to deputy trustees or the collector's deputies, or the sheriff or constables in any county where the taxpayer or any property liable for the taxes may be found, or the delinquent tax attorney, shall have the force and effect of a judgment and execution from a court of record, and shall be ample authority for the officers or delinquent tax attorney having such taxes for collection to distrain and sell a sufficient amount of the personal property to satisfy the delinquent taxes, interest, penalties, costs and attorneys' fees. However, leased personal property assessed to a lessee shall not be distrained and sold pursuant to this section.
(b) These delinquent personal property taxes may be immediately collected by distraint (distress warrant) and sale of any personal property liable therefor, by suit at law against the taxpayer, and/or by garnishment.
(c) Prior to distraint (seizure) of any personal property, the trustee, deputy trustee or delinquent tax attorney shall give not less than ten (10) days' written notice of the intended distraint (seizure) by either: (1) Delivering such notice in person; (2) Leaving such notice at the dwelling place or usual place of business of the taxpayer; or (3) By mailing such notice to the taxpayer's last known address.
(1) Delivering such notice in person;
(2) Leaving such notice at the dwelling place or usual place of business of the taxpayer; or
(3) By mailing such notice to the taxpayer's last known address.
(d) Ten (10) days' notice of the time and place of any sale of personalty shall be given by advertisement posted in three (3) public places in the county, one (1) of which shall be at the courthouse door. In addition, at least ten (10) days' written notice of the sale shall be given to the taxpayer by any of the methods outlined in subsection (c).
(e) The officers shall in all cases have the personal property present when sold and shall be allowed to retain in addition to the taxes, interest, penalties, costs, and attorney's fees, all commissions, costs and necessary expenses of removing and keeping the property distrained (expenses of seizure, preservation and storage of the property).
(f) Any delinquent tax attorney assisting the trustee shall be allowed attorney's fees, computed as are attorney's fees for collection of real property taxes in § 67-5-2410 .
(g) (1) The trustee or collector may turn over the delinquent list thirty (30) days after such taxes become delinquent to the delinquent tax attorney, selected pursuant to § 67-5-2404 or § 67-5-2001 , to file suit to collect delinquent personal property taxes, as part of any pending suit to collect real property taxes, as part of a separate mass lawsuit pursuant to the procedures set forth in this chapter, or as a separate lawsuit. Such can be done without having first issued a distress warrant. (2) In the event the trustee or collector turns over the delinquent list prior to the mailing of the notice pursuant to § 67-5-2402 , the trustee or collector shall be required to forward written notice by first class mail to the last known property owner at least ten (10) days before the delinquent list is turned over to the delinquent tax attorney. (3) If the procedure in this subsection (g) is used, the trustee or collector is also authorized, as with real property tax records, to turn over records to the clerk of court. (4) A judgment of personal liability for unpaid personal property taxes may be enforced as any other judgment, through garnishment, execution, or otherwise, and may also be recorded as a lien in one (1) or more offices of registers of deeds. Any judgment recorded pursuant to this subdivision (g)(4) shall be subject to the same requirements and attributes of judgment liens, including durability, priority, and renewal, and shall thereafter no longer be subject to the statute of limitation established by this chapter for unpaid property taxes. However, the rates of penalty and interest shall continue as established by this chapter, and upon recording of such judgment, the tax entity shall retain the alternative of enforcing its tax lien against the assessed personal property according to the priority and procedures set forth in this chapter. (5) Following entry of a personal judgment for delinquent personal property taxes, a tax entity may enter into a written agreement for the payment of such judgment in installments, pursuant to § 26-2-218 , on such terms as the tax entity may deem appropriate; provided, that such agreement must provide for payment of all taxes, interest, penalties, fees, and costs in full, including any interest and penalties that accrue during the term of the installment payments. (6) Any tax entity may file suit to collect any other taxes it is authorized by law to collect thirty (30) days after such taxes become delinquent, as part of any pending suit to collect property taxes, or as a separate mass lawsuit pursuant to the procedures set forth in this chapter.
(1) The trustee or collector may turn over the delinquent list thirty (30) days after such taxes become delinquent to the delinquent tax attorney, selected pursuant to § 67-5-2404 or § 67-5-2001 , to file suit to collect delinquent personal property taxes, as part of any pending suit to collect real property taxes, as part of a separate mass lawsuit pursuant to the procedures set forth in this chapter, or as a separate lawsuit. Such can be done without having first issued a distress warrant.
(2) In the event the trustee or collector turns over the delinquent list prior to the mailing of the notice pursuant to § 67-5-2402 , the trustee or collector shall be required to forward written notice by first class mail to the last known property owner at least ten (10) days before the delinquent list is turned over to the delinquent tax attorney.
(3) If the procedure in this subsection (g) is used, the trustee or collector is also authorized, as with real property tax records, to turn over records to the clerk of court.
(4) A judgment of personal liability for unpaid personal property taxes may be enforced as any other judgment, through garnishment, execution, or otherwise, and may also be recorded as a lien in one (1) or more offices of registers of deeds. Any judgment recorded pursuant to this subdivision (g)(4) shall be subject to the same requirements and attributes of judgment liens, including durability, priority, and renewal, and shall thereafter no longer be subject to the statute of limitation established by this chapter for unpaid property taxes. However, the rates of penalty and interest shall continue as established by this chapter, and upon recording of such judgment, the tax entity shall retain the alternative of enforcing its tax lien against the assessed personal property according to the priority and procedures set forth in this chapter.
(5) Following entry of a personal judgment for delinquent personal property taxes, a tax entity may enter into a written agreement for the payment of such judgment in installments, pursuant to § 26-2-218 , on such terms as the tax entity may deem appropriate; provided, that such agreement must provide for payment of all taxes, interest, penalties, fees, and costs in full, including any interest and penalties that accrue during the term of the installment payments.
(6) Any tax entity may file suit to collect any other taxes it is authorized by law to collect thirty (30) days after such taxes become delinquent, as part of any pending suit to collect property taxes, or as a separate mass lawsuit pursuant to the procedures set forth in this chapter.
(h) If any individual, partnership, joint venture, corporation or other legal entity has personal property, tangible or intangible, assessable by the county assessor or other authority, that is sold pursuant to title 47, chapter 9, the party possessing the security interest shall withhold and pay from the proceeds of the sale an amount sufficient to satisfy the personal property taxes assessed under § 67-5-2101 and subject to § 67-5-1805 . A secured party selling the property who fails to withhold and pay such amount shall be held to be personally liable for such amount to the trustee or other collecting official to which these personal property taxes are due, and any action to enforce this subsection (h) must commence against the secured party as a named defendant within four (4) years of the assessment date. Any amount paid by or collected from a secured party pursuant to this subsection (h) shall reduce by that same amount the balance due by the taxpayer to the trustee or other collecting official who has been paid, and such amount shall also become a new obligation of payment by the delinquent taxpayer to the secured party, regardless of contractual limitations to the contrary. The application of § 67-5-1805 to a secured party, and the mechanisms described in this subsection (h), shall be construed as remedial legislation designed to clarify and bring uniformity to existing law regarding the procedure of the apportionment and collection of taxes pursuant to this subsection (h).
(i) Delinquent public utility taxes and taxes owed by modern market telecommunications providers shall not be immediately collected under this section if the local assessment includes any real property. The trustee or collector shall confirm with the comptroller of the treasury whether such taxpayer's local assessment includes any real property.
Amended by 2017 Tenn. Acts, ch. 490,s 10, eff. 6/6/2017.
Amended by 2015 Tenn. Acts, ch. 414,s 4, eff. 5/8/2015.
Amended by 2013 Tenn. Acts, ch. 353,Secs.s9, s10, s11 eff. 5/13/2013.
Acts 1907, ch. 602, § 49; Shan., §§ 877a1, 877a2; Acts 1923, ch. 77, § 3; Shan. Supp., § 913b2; mod. Code 1932, §§ 1574-1576; C. Supp. 1950, § 1574; T.C.A. (orig. ed.), §§ 67-1305 -- 67-1307; Acts 1987, ch. 346, §§ 6, 17; 1990, ch. 1075, § 11; 2010, ch. 1007, § 2.
Tenn. Code Ann. § 67-4-2207 — TN Code / Title 67 / Chapter 4 / Section 67-4-2207
Construction
Status: in_force

Nothing in this part, including payment of the taxes or fees provided for in this part, shall be construed to make legal an otherwise illegal device, or to authorize or permit gambling on any device whatsoever. Acts 2002, ch. 856, § 2b.
Nothing in this part, including payment of the taxes or fees provided for in this part, shall be construed to make legal an otherwise illegal device, or to authorize or permit gambling on any device whatsoever.
Acts 2002, ch. 856, § 2b.
Tenn. Code Ann. § 67-5-1208 — TN Code / Title 67 / Chapter 5 / Section 67-5-1208
Nonseverability
Status: in_force

If any provision of this part and the 1968 amendments to [former] § 67-5-1101 [repealed] and § 67-2-104 or the application thereof to any person or circumstance is held invalid, such provision shall not be severable from this part and the 1968 amendments to [former] § 67-5-1101 [repealed] and § 67-2-104 and the whole of such provisions shall fail and be inoperative. Acts 1968, ch. 431, § 9; T.C.A., § 67-736.
If any provision of this part and the 1968 amendments to [former] § 67-5-1101 [repealed] and § 67-2-104 or the application thereof to any person or circumstance is held invalid, such provision shall not be severable from this part and the 1968 amendments to [former] § 67-5-1101 [repealed] and § 67-2-104 and the whole of such provisions shall fail and be inoperative.
Acts 1968, ch. 431, § 9; T.C.A., § 67-736.
Tenn. Code Ann. § 67-5-1509 — TN Code / Title 67 / Chapter 5 / Section 67-5-1509
Equalization action by state board
Status: in_force

(a) Upon its consideration of reports made to it, together with the evidence submitted with a report or other information available, the state board shall take whatever steps it deems are necessary to effect the assessment of property in accordance with the constitution and the laws of this state. The board shall by order or rule direct that commercial and industrial tangible personal property assessments be equalized using the appraisal ratios adopted by the board in each jurisdiction; provided, that an equalization factor for purposes of this section does not exceed a factor of one (1.000). The equalization described is available only to taxpayers who have timely filed the reporting schedule required by law. (b) Equalization may be made by the board by reducing or increasing the appraised values of properties within a taxing jurisdiction, or any part of the jurisdiction, in such manner as is determined by the state board of equalization will enable the board to justly and equitably equalize assessments in accordance with law. (c) If the state board of equalization deems it necessary to increase or decrease appraised values of properties of a taxing jurisdiction, or any part of the jurisdiction, in a manner that affects properties in general rather than individual properties, it is not necessary that the state board notify each individual property owner as provided in § 67-5-1510 ; provided, that the board shall cause to be published at least once, in a newspaper of general circulation within the taxing jurisdiction affected by the action of the board, a notice of the action of the state board. Amended by 2023 Tenn. Acts, ch. 184, s 8, eff. 7/1/2023. Amended by 2013 Tenn. Acts, ch. 209, s 14, eff. 4/23/2013. Acts 1973, ch. 226, § 10; 1975, ch. 171, § 8; T.C.A., § 67-838; Acts 1990, ch. 1075, § 10; 2009 , ch. 163, § 2.
(a) Upon its consideration of reports made to it, together with the evidence submitted with a report or other information available, the state board shall take whatever steps it deems are necessary to effect the assessment of property in accordance with the constitution and the laws of this state. The board shall by order or rule direct that commercial and industrial tangible personal property assessments be equalized using the appraisal ratios adopted by the board in each jurisdiction; provided, that an equalization factor for purposes of this section does not exceed a factor of one (1.000). The equalization described is available only to taxpayers who have timely filed the reporting schedule required by law.
(b) Equalization may be made by the board by reducing or increasing the appraised values of properties within a taxing jurisdiction, or any part of the jurisdiction, in such manner as is determined by the state board of equalization will enable the board to justly and equitably equalize assessments in accordance with law.
(c) If the state board of equalization deems it necessary to increase or decrease appraised values of properties of a taxing jurisdiction, or any part of the jurisdiction, in a manner that affects properties in general rather than individual properties, it is not necessary that the state board notify each individual property owner as provided in § 67-5-1510 ; provided, that the board shall cause to be published at least once, in a newspaper of general circulation within the taxing jurisdiction affected by the action of the board, a notice of the action of the state board.
Amended by 2023 Tenn. Acts, ch. 184, s 8, eff. 7/1/2023.
Amended by 2013 Tenn. Acts, ch. 209, s 14, eff. 4/23/2013.
Acts 1973, ch. 226, § 10; 1975, ch. 171, § 8; T.C.A., § 67-838; Acts 1990, ch. 1075, § 10; 2009 , ch. 163, § 2.
Tenn. Code Ann. § 67-4-1105 — TN Code / Title 67 / Chapter 4 / Section 67-4-1105
Tax rate
Status: in_force

The rate of the tax levied pursuant to § 67-4-1102 shall be as follows: (1) The production of special nuclear material shall be taxed in the amount of thirty cents (30¢) for every separative work unit expended within a county of this state; (2) In addition to the amount of tax computed in subdivision (1), the production of special nuclear material shall be taxed in the amount of one dollar ($1.00) for every separative work unit expended within a municipality of this state. Acts 1981, ch. 206, § 4; T.C.A., § 67-6203.
The rate of the tax levied pursuant to § 67-4-1102 shall be as follows:
(1) The production of special nuclear material shall be taxed in the amount of thirty cents (30¢) for every separative work unit expended within a county of this state;
(2) In addition to the amount of tax computed in subdivision (1), the production of special nuclear material shall be taxed in the amount of one dollar ($1.00) for every separative work unit expended within a municipality of this state.
Acts 1981, ch. 206, § 4; T.C.A., § 67-6203.
Tenn. Code Ann. § 67-4-2115 — TN Code / Title 67 / Chapter 4 / Section 67-4-2115
Filing of return
Status: in_force

(a) The franchise tax return shall be filed as provided in § 67-4-2015 . On any return covering less than a twelve-month period, including the return of a taxpayer in final return status, but excluding any return based on a fifty-two to fifty-three-week year, the franchise tax shall be prorated to cover the proportionate part of the year covered by the return. In the event the taxpayer's taxable year is closed within less than twelve (12) months of incorporation, formation, domestication, or commencing of business, the franchise tax of a domestic entity shall be prorated to cover the proportionate part of the year since the date of incorporation or formation, or the date of commencing business, whichever occurred first. The franchise tax of a taxpayer formed outside of Tennessee shall be prorated to cover the proportionate part of the year since beginning business in this state. Proration of the franchise tax shall be computed by a fraction based on a days method. (b) If a person or taxpayer in final return status effects a complete liquidation that is initiated and completed on the same date, then the franchise tax shall be computed utilizing net worth on the date immediately preceding the liquidating event; otherwise, on any return of a taxpayer in final return status, the franchise tax shall be computed by using the average monthly value of net worth. Such average monthly value shall be determined by totaling the value of net worth as of the final day of each month of the tax period and then dividing that total by the number of months in the tax period. In the event the taxpayer is part of an affiliated group that has elected to compute its net worth on a consolidated basis, such election shall not apply to the taxpayer while it is in final return status unless the entire affiliated group is in final return status during the same tax period, in which case the election shall continue to apply to the taxpayer. Amended by 2024 Tenn. Acts, ch. 950,s 14, eff. 5/10/2024. Amended by 2024 Tenn. Acts, ch. 950,s 13, eff. 5/10/2024. Amended by 2024 Tenn. Acts, ch. 950,s 12, eff. 5/10/2024. Amended by 2024 Tenn. Acts, ch. 950,s 11, eff. 5/10/2024. Amended by 2024 Tenn. Acts, ch. 950,s 10, eff. 5/10/2024. Amended by 2013 Tenn. Acts, ch. 321, s 7, eff. 5/13/2013. Acts 1999, ch. 406, § 4; 2005, ch. 499, § 82.
(a) The franchise tax return shall be filed as provided in § 67-4-2015 . On any return covering less than a twelve-month period, including the return of a taxpayer in final return status, but excluding any return based on a fifty-two to fifty-three-week year, the franchise tax shall be prorated to cover the proportionate part of the year covered by the return. In the event the taxpayer's taxable year is closed within less than twelve (12) months of incorporation, formation, domestication, or commencing of business, the franchise tax of a domestic entity shall be prorated to cover the proportionate part of the year since the date of incorporation or formation, or the date of commencing business, whichever occurred first. The franchise tax of a taxpayer formed outside of Tennessee shall be prorated to cover the proportionate part of the year since beginning business in this state. Proration of the franchise tax shall be computed by a fraction based on a days method.
(b) If a person or taxpayer in final return status effects a complete liquidation that is initiated and completed on the same date, then the franchise tax shall be computed utilizing net worth on the date immediately preceding the liquidating event; otherwise, on any return of a taxpayer in final return status, the franchise tax shall be computed by using the average monthly value of net worth. Such average monthly value shall be determined by totaling the value of net worth as of the final day of each month of the tax period and then dividing that total by the number of months in the tax period. In the event the taxpayer is part of an affiliated group that has elected to compute its net worth on a consolidated basis, such election shall not apply to the taxpayer while it is in final return status unless the entire affiliated group is in final return status during the same tax period, in which case the election shall continue to apply to the taxpayer.
Amended by 2024 Tenn. Acts, ch. 950,s 14, eff. 5/10/2024.
Amended by 2024 Tenn. Acts, ch. 950,s 13, eff. 5/10/2024.
Amended by 2024 Tenn. Acts, ch. 950,s 12, eff. 5/10/2024.
Amended by 2024 Tenn. Acts, ch. 950,s 11, eff. 5/10/2024.
Amended by 2024 Tenn. Acts, ch. 950,s 10, eff. 5/10/2024.
Amended by 2013 Tenn. Acts, ch. 321, s 7, eff. 5/13/2013.
Acts 1999, ch. 406, § 4; 2005, ch. 499, § 82.
Tenn. Code Ann. § 67-6-504 — TN Code / Title 67 / Chapter 6 / Section 67-6-504
Returns and payment
Status: in_force

(a) The taxes levied under this chapter shall be due and payable monthly, on the first day of each month, and for the purpose of ascertaining the amount of tax payable under this chapter, it shall be the duty of all dealers on or before the twentieth day of each month to transmit to the commissioner, upon forms prescribed, prepared and furnished by the commissioner, returns, showing the gross sales, or purchases, as the case may be, arising from all sales or purchases taxable under this chapter during the preceding calendar month. (b) At the time of transmitting the return required in this chapter to the commissioner, the dealer shall remit to the commissioner therewith the amount of tax due under the applicable provisions of this chapter, and failure to so remit such tax shall cause the tax to become delinquent. (c) Gross proceeds from rentals or leases of tangible personal property shall be reported and the tax shall be paid with respect thereto in accordance with such rules and regulations as the commissioner may prescribe. (d) Gross proceeds from the furnishing of things or services taxable under this chapter shall be reported and the tax shall be paid with respect thereto in the same manner as gross proceeds from the sale, rental or lease of tangible personal property and in accordance with such rules and regulations as the commissioner may prescribe. (e) Any dealer who is liable for the tax imposed by this chapter may round off all figures used on the sales and use tax return to the nearest dollar amount. (f) Notwithstanding any law to the contrary, when a taxpayer is required to remit payments electronically as set forth in § 67-1-703(b) , then all returns required by this chapter that are associated with such payments shall be filed electronically using a method approved by the commissioner. When any taxpayer is required to file returns and remit payments electronically for any one (1) outlet, location or other place of business, the commissioner may require the taxpayer to file returns and remit payments electronically for each place of business of the taxpayer. The requirement to file electronically shall continue thereafter until such time as the commissioner advises the taxpayer to file by another method. In extenuating circumstances, the commissioner is authorized to waive the electronic payment and filing requirements under this subsection (f) and under § 67-1-703(b) and permit the taxpayer to file the return in paper form. The commissioner is authorized to require that any such paper filing be accompanied by a manual handling fee, not to exceed twenty-five dollars ($25.00), that is reasonably calculated by the department to account for the additional cost of preparing, printing, receiving, reviewing and processing any paper filing so permitted. (g) In addition to any other penalty provided by law, the commissioner is authorized to assess any taxpayer required to file returns by electronic means under subsection (f) a penalty, not to exceed five hundred dollars ($500), for each instance of filing a return by any other means. Such penalty shall be subject to waiver under § 67-1-803 . (h) In computing the tax due or to be collected as the result of any transaction, the tax rate shall be the sum of the applicable state and local rate, if any, and the tax computation shall be carried to the third decimal place. Whenever the third decimal place is greater than four, the tax shall be rounded to the next whole cent. (i) A seller may elect to compute the tax due on a transaction on either an item or an invoice basis, and may apply the rounding rule provided for in subsection (h) to the aggregated state and local taxes. A seller shall not be required to collect the tax on a bracket system. (j) (1) Any dealer making sales subject to the tax imposed by this chapter may choose to collect and remit taxes as a Model 1 or Model 2 seller, subject to this subsection (j). For purposes of this subsection (j), tax includes any associated interest and penalty. (2) (A) A dealer choosing Model 1 shall contract with a certified service provider and shall permit the certified service provider to determine the tax due, collect the tax, file returns, and remit the tax to the appropriate state on all of its sales, leases, or rentals of tangible personal property or services that are subject to the tax levied by this chapter. A Model 1 seller's liability to this state for the tax levied by this chapter is limited to the tax due on its own purchases, the tax due on any of its sales, leases, or rentals made outside the system provided by the certified service provider, and the tax due in the event of fraud by the Model 1 seller. The certified service provider shall not have any additional liability for state or local option taxes imposed by this chapter, if: (i) The Model 1 seller charged and collected an incorrect amount of sales or use tax in reliance on erroneous data made available for review but not discovered during the certification of the certified service provider's automated system; provided, that the error is corrected within ten (10) days of the date of notification by the commissioner to correct the automated system. The commissioner may allot additional time upon a showing by the certified service provider of the need for additional time to correct the automated system; or (ii) An item or transaction is incorrectly classified as to its taxability within the certified service provider's automated system that was certified by this state; provided, that the taxability error is corrected within ten (10) days of the date of the notification by the commissioner to correct the automated system. (B) Beginning on the first day after the allotted period of time to correct the certified service provider's automated system, the certified service provider shall be liable for the tax, penalty and interest resulting from the failure to correct the certified service provider's automated system. This subdivision (j)(2) does not apply to errors in charging and collecting or remitting sales or use tax that are the result of classifying the item or transaction within a defined term or other classification within the certified service provider's automated system. (3) A dealer choosing Model 2 shall use a certified automated system to determine the tax due on all of its sales, leases, or rentals of tangible personal property or services that are subject to the tax levied by this chapter. Model 2 sellers shall not have any additional liability for state or local option taxes imposed by this chapter, if the Model 2 seller charged and collected or remitted an incorrect amount of sales or use tax in reliance on the certification of the certified automated system; provided, that the error is corrected within ten (10) days of the date of notification by the commissioner to correct or notification by the provider of the certified automated system of the availability of updates to correct the certified automated system. Beginning on the eleventh day, the Model 2 seller shall be liable for the tax, penalty, and interest resulting from the failure to correct or update the certified automated system for errors resulting from reliance on the certification. (k) A certified service provider has, and is subject to, all of the rights, liabilities, duties and responsibilities imposed by this chapter as if it were the Model 1 seller for whom the certified service provider has agreed to perform all sales and use tax functions, except the Model 1 seller's obligation to remit tax on its own purchases. (l) The commissioner may enter into contracts with certified service providers for the collection and reporting of the tax imposed under this chapter. The commissioner may enter into the contracts in conjunction with other states. (m) When reporting the local sales and use tax levied under part 7 of this chapter, out of state dealers shall provide sufficient information as prescribed by the commissioner to indicate the incorporated municipality or unincorporated area of a county into which the sale is shipped or delivered, even if the local tax rates of the municipality and unincorporated area of the county are the same. (n) Notwithstanding any law to the contrary, a dealer who owns and operates multiple micro markets in the state may file a single return for all sales or purchases made at micro markets within this state and report on a consolidated basis all sales and purchases made at micro markets within each local jurisdiction owned and operated by the dealer and taxable under this chapter. Acts 1947, ch. 3, §§ 8, 10; C. Supp. 1950, §§ 1248.64, 1248.75 (Williams, §§ 1328.30, 1328.32); modified; Acts 1955, ch. 51, § 12; T.C.A. (orig. ed.), §§ 67-3022 - 67-3024; Acts 1985, ch. 251, § 1; 2003, ch. 241, § 1; 2003, ch. 357, § 58; 2004, ch. 959, § 68; 2005, ch. 131, § 2; 2005, ch. 311, § 1; 2007, ch. 602, §§ 51, 105, 106, 158, 159, 187; 2008, ch. 1106, § 32; 2009, ch. 530, §§ 35, 46; 2011, ch. 72, §§ 1, 12; 2012, ch. 657, §§ 7, 8; 2019, ch. 491, § 1; 2021, ch. 289, § 4.
(a) The taxes levied under this chapter shall be due and payable monthly, on the first day of each month, and for the purpose of ascertaining the amount of tax payable under this chapter, it shall be the duty of all dealers on or before the twentieth day of each month to transmit to the commissioner, upon forms prescribed, prepared and furnished by the commissioner, returns, showing the gross sales, or purchases, as the case may be, arising from all sales or purchases taxable under this chapter during the preceding calendar month.
(b) At the time of transmitting the return required in this chapter to the commissioner, the dealer shall remit to the commissioner therewith the amount of tax due under the applicable provisions of this chapter, and failure to so remit such tax shall cause the tax to become delinquent.
(c) Gross proceeds from rentals or leases of tangible personal property shall be reported and the tax shall be paid with respect thereto in accordance with such rules and regulations as the commissioner may prescribe.
(d) Gross proceeds from the furnishing of things or services taxable under this chapter shall be reported and the tax shall be paid with respect thereto in the same manner as gross proceeds from the sale, rental or lease of tangible personal property and in accordance with such rules and regulations as the commissioner may prescribe.
(e) Any dealer who is liable for the tax imposed by this chapter may round off all figures used on the sales and use tax return to the nearest dollar amount.
(f) Notwithstanding any law to the contrary, when a taxpayer is required to remit payments electronically as set forth in § 67-1-703(b) , then all returns required by this chapter that are associated with such payments shall be filed electronically using a method approved by the commissioner. When any taxpayer is required to file returns and remit payments electronically for any one (1) outlet, location or other place of business, the commissioner may require the taxpayer to file returns and remit payments electronically for each place of business of the taxpayer. The requirement to file electronically shall continue thereafter until such time as the commissioner advises the taxpayer to file by another method. In extenuating circumstances, the commissioner is authorized to waive the electronic payment and filing requirements under this subsection (f) and under § 67-1-703(b) and permit the taxpayer to file the return in paper form. The commissioner is authorized to require that any such paper filing be accompanied by a manual handling fee, not to exceed twenty-five dollars ($25.00), that is reasonably calculated by the department to account for the additional cost of preparing, printing, receiving, reviewing and processing any paper filing so permitted.
(g) In addition to any other penalty provided by law, the commissioner is authorized to assess any taxpayer required to file returns by electronic means under subsection (f) a penalty, not to exceed five hundred dollars ($500), for each instance of filing a return by any other means. Such penalty shall be subject to waiver under § 67-1-803 .
(h) In computing the tax due or to be collected as the result of any transaction, the tax rate shall be the sum of the applicable state and local rate, if any, and the tax computation shall be carried to the third decimal place. Whenever the third decimal place is greater than four, the tax shall be rounded to the next whole cent.
(i) A seller may elect to compute the tax due on a transaction on either an item or an invoice basis, and may apply the rounding rule provided for in subsection (h) to the aggregated state and local taxes. A seller shall not be required to collect the tax on a bracket system.
(j) (1) Any dealer making sales subject to the tax imposed by this chapter may choose to collect and remit taxes as a Model 1 or Model 2 seller, subject to this subsection (j). For purposes of this subsection (j), tax includes any associated interest and penalty. (2) (A) A dealer choosing Model 1 shall contract with a certified service provider and shall permit the certified service provider to determine the tax due, collect the tax, file returns, and remit the tax to the appropriate state on all of its sales, leases, or rentals of tangible personal property or services that are subject to the tax levied by this chapter. A Model 1 seller's liability to this state for the tax levied by this chapter is limited to the tax due on its own purchases, the tax due on any of its sales, leases, or rentals made outside the system provided by the certified service provider, and the tax due in the event of fraud by the Model 1 seller. The certified service provider shall not have any additional liability for state or local option taxes imposed by this chapter, if: (i) The Model 1 seller charged and collected an incorrect amount of sales or use tax in reliance on erroneous data made available for review but not discovered during the certification of the certified service provider's automated system; provided, that the error is corrected within ten (10) days of the date of notification by the commissioner to correct the automated system. The commissioner may allot additional time upon a showing by the certified service provider of the need for additional time to correct the automated system; or (ii) An item or transaction is incorrectly classified as to its taxability within the certified service provider's automated system that was certified by this state; provided, that the taxability error is corrected within ten (10) days of the date of the notification by the commissioner to correct the automated system. (B) Beginning on the first day after the allotted period of time to correct the certified service provider's automated system, the certified service provider shall be liable for the tax, penalty and interest resulting from the failure to correct the certified service provider's automated system. This subdivision (j)(2) does not apply to errors in charging and collecting or remitting sales or use tax that are the result of classifying the item or transaction within a defined term or other classification within the certified service provider's automated system. (3) A dealer choosing Model 2 shall use a certified automated system to determine the tax due on all of its sales, leases, or rentals of tangible personal property or services that are subject to the tax levied by this chapter. Model 2 sellers shall not have any additional liability for state or local option taxes imposed by this chapter, if the Model 2 seller charged and collected or remitted an incorrect amount of sales or use tax in reliance on the certification of the certified automated system; provided, that the error is corrected within ten (10) days of the date of notification by the commissioner to correct or notification by the provider of the certified automated system of the availability of updates to correct the certified automated system. Beginning on the eleventh day, the Model 2 seller shall be liable for the tax, penalty, and interest resulting from the failure to correct or update the certified automated system for errors resulting from reliance on the certification.
(1) Any dealer making sales subject to the tax imposed by this chapter may choose to collect and remit taxes as a Model 1 or Model 2 seller, subject to this subsection (j). For purposes of this subsection (j), tax includes any associated interest and penalty.
(2) (A) A dealer choosing Model 1 shall contract with a certified service provider and shall permit the certified service provider to determine the tax due, collect the tax, file returns, and remit the tax to the appropriate state on all of its sales, leases, or rentals of tangible personal property or services that are subject to the tax levied by this chapter. A Model 1 seller's liability to this state for the tax levied by this chapter is limited to the tax due on its own purchases, the tax due on any of its sales, leases, or rentals made outside the system provided by the certified service provider, and the tax due in the event of fraud by the Model 1 seller. The certified service provider shall not have any additional liability for state or local option taxes imposed by this chapter, if: (i) The Model 1 seller charged and collected an incorrect amount of sales or use tax in reliance on erroneous data made available for review but not discovered during the certification of the certified service provider's automated system; provided, that the error is corrected within ten (10) days of the date of notification by the commissioner to correct the automated system. The commissioner may allot additional time upon a showing by the certified service provider of the need for additional time to correct the automated system; or (ii) An item or transaction is incorrectly classified as to its taxability within the certified service provider's automated system that was certified by this state; provided, that the taxability error is corrected within ten (10) days of the date of the notification by the commissioner to correct the automated system. (B) Beginning on the first day after the allotted period of time to correct the certified service provider's automated system, the certified service provider shall be liable for the tax, penalty and interest resulting from the failure to correct the certified service provider's automated system. This subdivision (j)(2) does not apply to errors in charging and collecting or remitting sales or use tax that are the result of classifying the item or transaction within a defined term or other classification within the certified service provider's automated system.
(A) A dealer choosing Model 1 shall contract with a certified service provider and shall permit the certified service provider to determine the tax due, collect the tax, file returns, and remit the tax to the appropriate state on all of its sales, leases, or rentals of tangible personal property or services that are subject to the tax levied by this chapter. A Model 1 seller's liability to this state for the tax levied by this chapter is limited to the tax due on its own purchases, the tax due on any of its sales, leases, or rentals made outside the system provided by the certified service provider, and the tax due in the event of fraud by the Model 1 seller. The certified service provider shall not have any additional liability for state or local option taxes imposed by this chapter, if: (i) The Model 1 seller charged and collected an incorrect amount of sales or use tax in reliance on erroneous data made available for review but not discovered during the certification of the certified service provider's automated system; provided, that the error is corrected within ten (10) days of the date of notification by the commissioner to correct the automated system. The commissioner may allot additional time upon a showing by the certified service provider of the need for additional time to correct the automated system; or (ii) An item or transaction is incorrectly classified as to its taxability within the certified service provider's automated system that was certified by this state; provided, that the taxability error is corrected within ten (10) days of the date of the notification by the commissioner to correct the automated system.
(i) The Model 1 seller charged and collected an incorrect amount of sales or use tax in reliance on erroneous data made available for review but not discovered during the certification of the certified service provider's automated system; provided, that the error is corrected within ten (10) days of the date of notification by the commissioner to correct the automated system. The commissioner may allot additional time upon a showing by the certified service provider of the need for additional time to correct the automated system; or
(ii) An item or transaction is incorrectly classified as to its taxability within the certified service provider's automated system that was certified by this state; provided, that the taxability error is corrected within ten (10) days of the date of the notification by the commissioner to correct the automated system.
(B) Beginning on the first day after the allotted period of time to correct the certified service provider's automated system, the certified service provider shall be liable for the tax, penalty and interest resulting from the failure to correct the certified service provider's automated system. This subdivision (j)(2) does not apply to errors in charging and collecting or remitting sales or use tax that are the result of classifying the item or transaction within a defined term or other classification within the certified service provider's automated system.
(3) A dealer choosing Model 2 shall use a certified automated system to determine the tax due on all of its sales, leases, or rentals of tangible personal property or services that are subject to the tax levied by this chapter. Model 2 sellers shall not have any additional liability for state or local option taxes imposed by this chapter, if the Model 2 seller charged and collected or remitted an incorrect amount of sales or use tax in reliance on the certification of the certified automated system; provided, that the error is corrected within ten (10) days of the date of notification by the commissioner to correct or notification by the provider of the certified automated system of the availability of updates to correct the certified automated system. Beginning on the eleventh day, the Model 2 seller shall be liable for the tax, penalty, and interest resulting from the failure to correct or update the certified automated system for errors resulting from reliance on the certification.
(k) A certified service provider has, and is subject to, all of the rights, liabilities, duties and responsibilities imposed by this chapter as if it were the Model 1 seller for whom the certified service provider has agreed to perform all sales and use tax functions, except the Model 1 seller's obligation to remit tax on its own purchases.
(l) The commissioner may enter into contracts with certified service providers for the collection and reporting of the tax imposed under this chapter. The commissioner may enter into the contracts in conjunction with other states.
(m) When reporting the local sales and use tax levied under part 7 of this chapter, out of state dealers shall provide sufficient information as prescribed by the commissioner to indicate the incorporated municipality or unincorporated area of a county into which the sale is shipped or delivered, even if the local tax rates of the municipality and unincorporated area of the county are the same.
(n) Notwithstanding any law to the contrary, a dealer who owns and operates multiple micro markets in the state may file a single return for all sales or purchases made at micro markets within this state and report on a consolidated basis all sales and purchases made at micro markets within each local jurisdiction owned and operated by the dealer and taxable under this chapter.
Acts 1947, ch. 3, §§ 8, 10; C. Supp. 1950, §§ 1248.64, 1248.75 (Williams, §§ 1328.30, 1328.32); modified; Acts 1955, ch. 51, § 12; T.C.A. (orig. ed.), §§ 67-3022 - 67-3024; Acts 1985, ch. 251, § 1; 2003, ch. 241, § 1; 2003, ch. 357, § 58; 2004, ch. 959, § 68; 2005, ch. 131, § 2; 2005, ch. 311, § 1; 2007, ch. 602, §§ 51, 105, 106, 158, 159, 187; 2008, ch. 1106, § 32; 2009, ch. 530, §§ 35, 46; 2011, ch. 72, §§ 1, 12; 2012, ch. 657, §§ 7, 8; 2019, ch. 491, § 1; 2021, ch. 289, § 4.
Tenn. Code Ann. § 67-5-702 — TN Code / Title 67 / Chapter 5 / Section 67-5-702
Elderly low-income homeowners
Status: in_force

(a) (1) There shall be paid from the general funds of the state to certain low-income taxpayers sixty-five (65) years of age or older the amount necessary to pay or reimburse such taxpayers for all or part of the local property taxes paid for a given year on that property that the taxpayer owned and used as the taxpayer's residence as provided in this part. (2) For tax year 2007 and thereafter, the taxpayer's annual income from all sources shall not exceed twenty-four thousand dollars ($24,000), or such other amount as set forth in the general appropriations act. This annual income limit shall be adjusted each tax year to reflect the cost of living adjustment for social security recipients as determined by the social security administration and shall be rounded to the nearest ten dollars ($10.00). The income attributable to the applicant for tax relief shall be the income of all owners of the property, the income of applicant's spouse and the income of any owner of a remainder or reversion in the property if the property constituted the person's legal residence at any time during the year for which tax relief is claimed. Any portion of social security income, social security equivalent railroad retirement benefits, and veterans entitlements required to be paid to a nursing home for nursing home care by federal regulations shall not be considered income to an owner who relocates to a nursing home. (3) (A) Such reimbursement shall be paid on the first twenty-seven thousand dollars ($27,000), or such other amount as set forth in the general appropriations act or as adjusted pursuant to subdivision (a)(3)(B), of the full market value of such property. (B) Beginning for tax year 2018, and each subsequent tax year, the amount on which reimbursement shall be paid under subdivision (a)(3)(A) shall be increased annually to reflect inflation, as measured by the United States bureau of labor statistics consumer price index for all urban consumers and shall be rounded to the nearest one hundred dollars ($100). The comptroller of the treasury shall notify taxpayers of any change in dollar amounts made pursuant to this subdivision (a)(3)(B) and post the information in a readily identifiable location on the comptroller's website. The annual percentage changes used in this calculation shall be no less than zero percent (0%) and no more than three percent (3%). (b) (1) In determining the amount of relief to a taxpayer, the effective assessed value on the first twenty-seven thousand dollars ($27,000), or such other amount as set forth in the general appropriations act or as adjusted pursuant to subdivision (a)(3)(B), of full market value shall be multiplied by a tax rate that has been adjusted to reflect the relationship between appraised value and market value in that jurisdiction, as determined by the state board of equalization. (2) The effective assessed value shall be determined by multiplying the full market value of the property up to twenty-seven thousand dollars ($27,000), or such other amount as set forth in the general appropriations act or as adjusted pursuant to subdivision (a)(3)(B), by twenty-five percent (25%). (3) The full market value of the property shall be determined by adjusting the appraised value of the property as shown on the records of the assessor of property by a factor that reflects the relationship between appraised value and market value in that jurisdiction, as determined by the state board of equalization. (c) Taxpayers who become sixty-five (65) years of age on or before December 31 of the year for which application is made for property tax relief and are otherwise eligible shall be qualified as elderly low-income homeowners. (d) Elderly low-income homeowners shall continue to qualify for property tax relief while the taxpayer is temporarily relocated for health care to the home of a friend or relative, or to a hospital or skilled or intermediate care facility if the taxpayer indicates an intent to return to the residence when recovered sufficiently. (e) For purposes of this section, an elderly low-income homeowner's residence shall be determined in accordance with the principles set forth by § 2-2-122 . (f) Elderly low-income homeowners who were temporarily relocated for health care to the home of a friend or relative, or to a hospital or skilled or intermediate care facility during the period beginning on or after October 3, 2017, and prior to April 12, 2018, and whose reimbursement under this section ceased during such period as a result of such temporary relocation, shall receive reimbursement retroactively for such period, and shall continue to receive such reimbursement in accordance with this section on or after April 12, 2018. Amended by 2018 Tenn. Acts, ch. 710, s 1, eff. 4/12/2018. Amended by 2017 Tenn. Acts, ch. 181, s 32, eff. 7/1/2017. Amended by 2017 Tenn. Acts, ch. 181, s 31, eff. 7/1/2017. Amended by 2016 Tenn. Acts, ch. 1065, s 2, eff. 5/20/2016. Amended by 2015 Tenn. Acts, ch. 481, s 2, eff. 5/18/2015. Acts 1973, ch. 226, § 6; 1974, ch. 771, § 9; 1978, ch. 936, § 1; 1979, ch. 388, §§ 1, 3; T.C.A., § 67-645; Acts 1983, ch. 127, § 1; T.C.A., § 67-670; Acts 1988, ch. 496, § 1; 1988, ch. 522, §§ 4-6; 1992, ch. 964, § 1; 1992, ch. 1021, § 1; 1993, ch. 500, § 1; 1996, ch. 967, § 2; 1998, ch. 726, § 1; 1998, ch. 1031, § 1; 2006, ch. 1019, §§ 61 - 63; 2007 , ch. 539, § 1; 2009 , ch. 68, § 1.
(a) (1) There shall be paid from the general funds of the state to certain low-income taxpayers sixty-five (65) years of age or older the amount necessary to pay or reimburse such taxpayers for all or part of the local property taxes paid for a given year on that property that the taxpayer owned and used as the taxpayer's residence as provided in this part. (2) For tax year 2007 and thereafter, the taxpayer's annual income from all sources shall not exceed twenty-four thousand dollars ($24,000), or such other amount as set forth in the general appropriations act. This annual income limit shall be adjusted each tax year to reflect the cost of living adjustment for social security recipients as determined by the social security administration and shall be rounded to the nearest ten dollars ($10.00). The income attributable to the applicant for tax relief shall be the income of all owners of the property, the income of applicant's spouse and the income of any owner of a remainder or reversion in the property if the property constituted the person's legal residence at any time during the year for which tax relief is claimed. Any portion of social security income, social security equivalent railroad retirement benefits, and veterans entitlements required to be paid to a nursing home for nursing home care by federal regulations shall not be considered income to an owner who relocates to a nursing home. (3) (A) Such reimbursement shall be paid on the first twenty-seven thousand dollars ($27,000), or such other amount as set forth in the general appropriations act or as adjusted pursuant to subdivision (a)(3)(B), of the full market value of such property. (B) Beginning for tax year 2018, and each subsequent tax year, the amount on which reimbursement shall be paid under subdivision (a)(3)(A) shall be increased annually to reflect inflation, as measured by the United States bureau of labor statistics consumer price index for all urban consumers and shall be rounded to the nearest one hundred dollars ($100). The comptroller of the treasury shall notify taxpayers of any change in dollar amounts made pursuant to this subdivision (a)(3)(B) and post the information in a readily identifiable location on the comptroller's website. The annual percentage changes used in this calculation shall be no less than zero percent (0%) and no more than three percent (3%).
(1) There shall be paid from the general funds of the state to certain low-income taxpayers sixty-five (65) years of age or older the amount necessary to pay or reimburse such taxpayers for all or part of the local property taxes paid for a given year on that property that the taxpayer owned and used as the taxpayer's residence as provided in this part.
(2) For tax year 2007 and thereafter, the taxpayer's annual income from all sources shall not exceed twenty-four thousand dollars ($24,000), or such other amount as set forth in the general appropriations act. This annual income limit shall be adjusted each tax year to reflect the cost of living adjustment for social security recipients as determined by the social security administration and shall be rounded to the nearest ten dollars ($10.00). The income attributable to the applicant for tax relief shall be the income of all owners of the property, the income of applicant's spouse and the income of any owner of a remainder or reversion in the property if the property constituted the person's legal residence at any time during the year for which tax relief is claimed. Any portion of social security income, social security equivalent railroad retirement benefits, and veterans entitlements required to be paid to a nursing home for nursing home care by federal regulations shall not be considered income to an owner who relocates to a nursing home.
(3) (A) Such reimbursement shall be paid on the first twenty-seven thousand dollars ($27,000), or such other amount as set forth in the general appropriations act or as adjusted pursuant to subdivision (a)(3)(B), of the full market value of such property. (B) Beginning for tax year 2018, and each subsequent tax year, the amount on which reimbursement shall be paid under subdivision (a)(3)(A) shall be increased annually to reflect inflation, as measured by the United States bureau of labor statistics consumer price index for all urban consumers and shall be rounded to the nearest one hundred dollars ($100). The comptroller of the treasury shall notify taxpayers of any change in dollar amounts made pursuant to this subdivision (a)(3)(B) and post the information in a readily identifiable location on the comptroller's website. The annual percentage changes used in this calculation shall be no less than zero percent (0%) and no more than three percent (3%).
(A) Such reimbursement shall be paid on the first twenty-seven thousand dollars ($27,000), or such other amount as set forth in the general appropriations act or as adjusted pursuant to subdivision (a)(3)(B), of the full market value of such property.
(B) Beginning for tax year 2018, and each subsequent tax year, the amount on which reimbursement shall be paid under subdivision (a)(3)(A) shall be increased annually to reflect inflation, as measured by the United States bureau of labor statistics consumer price index for all urban consumers and shall be rounded to the nearest one hundred dollars ($100). The comptroller of the treasury shall notify taxpayers of any change in dollar amounts made pursuant to this subdivision (a)(3)(B) and post the information in a readily identifiable location on the comptroller's website. The annual percentage changes used in this calculation shall be no less than zero percent (0%) and no more than three percent (3%).
(b) (1) In determining the amount of relief to a taxpayer, the effective assessed value on the first twenty-seven thousand dollars ($27,000), or such other amount as set forth in the general appropriations act or as adjusted pursuant to subdivision (a)(3)(B), of full market value shall be multiplied by a tax rate that has been adjusted to reflect the relationship between appraised value and market value in that jurisdiction, as determined by the state board of equalization. (2) The effective assessed value shall be determined by multiplying the full market value of the property up to twenty-seven thousand dollars ($27,000), or such other amount as set forth in the general appropriations act or as adjusted pursuant to subdivision (a)(3)(B), by twenty-five percent (25%). (3) The full market value of the property shall be determined by adjusting the appraised value of the property as shown on the records of the assessor of property by a factor that reflects the relationship between appraised value and market value in that jurisdiction, as determined by the state board of equalization.
(1) In determining the amount of relief to a taxpayer, the effective assessed value on the first twenty-seven thousand dollars ($27,000), or such other amount as set forth in the general appropriations act or as adjusted pursuant to subdivision (a)(3)(B), of full market value shall be multiplied by a tax rate that has been adjusted to reflect the relationship between appraised value and market value in that jurisdiction, as determined by the state board of equalization.
(2) The effective assessed value shall be determined by multiplying the full market value of the property up to twenty-seven thousand dollars ($27,000), or such other amount as set forth in the general appropriations act or as adjusted pursuant to subdivision (a)(3)(B), by twenty-five percent (25%).
(3) The full market value of the property shall be determined by adjusting the appraised value of the property as shown on the records of the assessor of property by a factor that reflects the relationship between appraised value and market value in that jurisdiction, as determined by the state board of equalization.
(c) Taxpayers who become sixty-five (65) years of age on or before December 31 of the year for which application is made for property tax relief and are otherwise eligible shall be qualified as elderly low-income homeowners.
(d) Elderly low-income homeowners shall continue to qualify for property tax relief while the taxpayer is temporarily relocated for health care to the home of a friend or relative, or to a hospital or skilled or intermediate care facility if the taxpayer indicates an intent to return to the residence when recovered sufficiently.
(e) For purposes of this section, an elderly low-income homeowner's residence shall be determined in accordance with the principles set forth by § 2-2-122 .
(f) Elderly low-income homeowners who were temporarily relocated for health care to the home of a friend or relative, or to a hospital or skilled or intermediate care facility during the period beginning on or after October 3, 2017, and prior to April 12, 2018, and whose reimbursement under this section ceased during such period as a result of such temporary relocation, shall receive reimbursement retroactively for such period, and shall continue to receive such reimbursement in accordance with this section on or after April 12, 2018.
Amended by 2018 Tenn. Acts, ch. 710, s 1, eff. 4/12/2018.
Amended by 2017 Tenn. Acts, ch. 181, s 32, eff. 7/1/2017.
Amended by 2017 Tenn. Acts, ch. 181, s 31, eff. 7/1/2017.
Amended by 2016 Tenn. Acts, ch. 1065, s 2, eff. 5/20/2016.
Amended by 2015 Tenn. Acts, ch. 481, s 2, eff. 5/18/2015.
Acts 1973, ch. 226, § 6; 1974, ch. 771, § 9; 1978, ch. 936, § 1; 1979, ch. 388, §§ 1, 3; T.C.A., § 67-645; Acts 1983, ch. 127, § 1; T.C.A., § 67-670; Acts 1988, ch. 496, § 1; 1988, ch. 522, §§ 4-6; 1992, ch. 964, § 1; 1992, ch. 1021, § 1; 1993, ch. 500, § 1; 1996, ch. 967, § 2; 1998, ch. 726, § 1; 1998, ch. 1031, § 1; 2006, ch. 1019, §§ 61 - 63; 2007 , ch. 539, § 1; 2009 , ch. 68, § 1.
Tenn. Code Ann. § 67-5-212 — TN Code / Title 67 / Chapter 5 / Section 67-5-212
Religious, charitable, scientific, educational institutions - Assessment Act
Status: in_force

(a) (1) There shall be exempt from property taxation the real and personal property, or any part of the real and personal property, owned by any religious, charitable, scientific, or nonprofit educational institution that is occupied and actually used by the institution or its officers purely and exclusively for carrying out one (1) or more of the exempt purposes for which the institution was created or exists. There shall further be exempt from property taxation the real and personal property, or any part of the real and personal property, owned by an exempt institution, but occupied and actually used by: (A) Another religious, charitable, scientific, or nonprofit educational institution or its officers purely and exclusively for carrying out one (1) or more of the exempt purposes for which the occupying institution was created or exists; (B) An exempt institution that originated as part of a single exempt institution and that continues to use the property for the same religious, charitable, scientific, or nonprofit educational purposes, whether by charter, contract, or other agreement or arrangement; or (C) The United States government, the state of Tennessee, or any agency or political subdivision thereof. (2) In determining the exemption applicable to a post-secondary educational institution, there shall be a presumption that the entire original campus of an institution chartered before 1930 is an historical and integral entity, and is exempt so long as no particular portion of such campus is used for nonexempt purposes. (3) (A) The property of such institution shall not be exempt, if: (i) The owner, or any stockholder, officer, member, or employee of such institution shall receive or may be lawfully entitled to receive any pecuniary profit from the operations of that property in competition with like property owned by others that is not exempt, except reasonable compensation for services in effecting one (1) or more of such purposes, or as proper beneficiaries of its strictly religious, charitable, scientific, or educational purposes; or (ii) The organization thereof for any such avowed purpose be a guise or pretense for directly or indirectly making any other pecuniary profit for such institution, or for any of its members or employees, or if it be not in good faith organized or conducted exclusively for one (1) or more of these purposes. (B) The real property of any such institution not so used exclusively for carrying out thereupon one (1) or more of such purposes, but leased or otherwise used for other purposes, whether the income received therefrom be used for one (1) or more of such purposes or not, shall not be exempt; but, if a portion only of any lot or building of any such institution is used purely and exclusively for carrying out thereupon one (1) or more of such purposes of such institution, then such lot or building shall be so exempt only to the extent of the value of the portion so used, and the remaining or other portion shall be subject to taxation. (4) No church shall be granted an exemption on more than one (1) parsonage, and an exempt parsonage may not include within the exemption more than three (3) acres. (5) For property owned by a corporation organized for the exclusive purpose of holding title to property for use by any organization that itself qualifies for exemption under this section, only such property of the corporation, or such parts thereof, as would be entitled to an exemption under this section if owned directly by such organization shall be exempt from property taxation. (b) (1) Any owner of real or personal property claiming exemption under this section or § 67-5-207 , § 67-5-213 , § 67-5-219 , or as otherwise required by law, shall file an application for the exemption with the state board of equalization on a form prescribed by the board and supply such further information as the board may require to determine whether the property qualifies for exemption. No property that is subject to these application requirements shall be exempted from property taxes unless the application has been approved in writing by the board. An application shall be deemed filed on the date it is received by the board or, if mailed, on the postmark date. The applicant shall provide a copy of the application with any supporting materials to the assessor of property of the county in which the property is located. An application for exemption pursuant to this section or any other section referring to these procedures shall be treated as an appeal for purposes of § 67-5-1512 . (2) The board shall make an initial determination granting or denying exemption through its staff designee, who shall send written notice of the initial determination to the applicant and the assessor of property. Written notice includes notification by electronic means and notice may be preserved in digital or electronic format. Either the assessor of property or the applicant may appeal the initial determination to the board and shall be entitled to a hearing prior to any final determination of exemption. The assessor shall retain copies of any approved exemptions in paper, electronic, or digital format. Upon approval of exemption, it is not necessary that the applicant reapply each year, but the exemption shall not be transferable or assignable and the applicant shall promptly report to the assessor any change in the use or ownership of the property that might affect its exempt status. The board may by rule impose a filing fee for processing applications for exemption. Such filing fee shall not exceed one hundred twenty dollars ($120) and shall be proportionate to the value of the property at issue. For purposes of this section, "filing" means one (1) submission that may include multiple parcels, including real and personal property, with a clear nexus to one (1) exemption determination. (3) (A) Any institution claiming an exemption under this section that has not previously filed an application for and been granted an exemption for a parcel must file an application for exemption with the state board of equalization by May 20 of the year for which exemption is sought. If the application is approved, the exemption will be effective as of January 1 of the year of application or as of the date the exempt use of such parcel began, whichever is later. If application is made after May 20 of the year for which exemption is sought, but prior to the end of the year, the application may be approved but will be effective for only a portion of the year determined as follows: (i) If application is filed within thirty (30) days after the exempt use of the property began, exemption will be effective as of the date the exempt use began; or (ii) If application is filed more than thirty (30) days after the exempt use began, the exemption will be effective as of the date of application. (B) If a religious institution acquires property that was duly exempt at the time of transfer from a transferor who had previously been approved for a religious use exemption of the property, or if a religious institution acquires property to replace its own exempt property, then the effective date of exemption shall be three (3) years prior to the date of application, or the date the acquiring institution began to use the property for religious purposes, whichever is later. The purpose of this subdivision (b)(3) is to provide continuity of exempt status for property transferred from one exempt religious institution to another in the specified circumstances. For purposes of this subdivision (b)(3), property transferred by a lender following foreclosure shall be deemed to have been transferred by the foreclosed debtor, whether or not the property was assessed in the name of the lender during the lender's possession. (C) In any county having a metropolitan form of government and a population in excess of five hundred thousand (500,000), according to the 2010 federal census or any subsequent federal census, if a nonprofit educational institution which is a medical college acquires one (1) or more parcels of land or portions thereof for the purpose of carrying out one (1) or more of the exempt purposes for which the institution was created or exists, the institution may claim and file an application for exemption under this section or § 67-5-213 , and the effective date of such exemption shall be up to three (3) years prior to the date of application, or the date the institution began to use the property for exempt purposes, whichever is later. This subdivision (b)(3)(C) shall apply to properties acquired before May 25, 2017, so that such properties are not subject to taxation under this chapter while owned by the exempt educational institution and used for one (1) or more of the exempt purposes for which the institution was created or exists; provided, however, that nothing in this subdivision (b)(3)(C) requires a county to refund any taxes that were collected prior to May 25, 2017. (D) In any county with a population of not less than four hundred thirty-two thousand two hundred (432,200) nor more than four-hundred thirty-two thousand three hundred (432,300), according to the 2010 federal census or any subsequent federal census, or within a municipality located within such county, if a nonprofit children's hospital changes the use of one (1) or more parcels of land or portions thereof for the purpose of carrying out one (1) or more of the exempt purposes for which the institution was created or exists, the institution may claim and file an application for exemption under this section or § 67-5-213 , and the effective date of such exemption shall be up to three (3) years prior to the date of application, or the date the institution began to use the property for exempt purposes, whichever is later. In determining the date that a qualifying institution begins using property for an exempt purpose, subsection (g) applies to the full extent of both improvements and underlying real property so that the entire property, to the extent that the full value of underlying land and any improvements thereon, is considered to be occupied and used by the qualifying institution or its officers purely and exclusively for the institution's purposes from and after the commencement of construction of improvements. This subdivision (b)(3)(D) applies to properties acquired before May 15, 2018, so that such properties are not subject to taxation under this chapter while owned by the qualifying institution and used for one (1) or more of the exempt purposes for which the institution was created or exists, and any property taxes paid on such property that were collected prior to May 15, 2018, shall be refunded. (E) In any county with a population of not less than four hundred seventy-eight thousand nine hundred (478,900) nor more than four-hundred seventy-nine thousand (479,000), according to the 2020 federal census or a subsequent federal census, or within a municipality located within the county, if a charitable nonprofit corporation acquires property for use as a licensed residential home for the aged to replace its own exempt property that was used as a licensed residential home for the aged, then the charitable nonprofit corporation may claim and file an application for exemption under this section, and the effective date of exemption is up to three (3) years prior to the date of application, or the date the corporation began to use the property for exempt purposes, whichever is later. In determining the date that a qualifying corporation begins using property for an exempt purpose, subsection (g) applies to the full extent of both improvements and underlying real property so that the entire property, to the extent that the full value of underlying land and any improvements thereon, is considered to be occupied and used by the qualifying corporation or its officers purely and exclusively for the corporation's purposes from and after the commencement of construction of improvements. This subdivision (b)(3)(E) applies to properties acquired before May 28, 2024, so that the properties are not subject to taxation under this chapter while owned by the qualifying corporation and used for one (1) or more of the exempt purposes for which the corporation was created or exists, and any property taxes, interest, fees, penalties, postage, expenses, and all other related costs paid on the property that were collected prior to May 28, 2024 must be refunded. (4) All questions of exemption under this section shall be subject to review and final determination by the board; provided, that any determination by the board is subject to judicial review by petition of certiorari to the appropriate chancery court. All other provisions of law notwithstanding, no property shall be entitled to judicial review of its status under this statute, except as provided by the Uniform Administrative Procedures Act, compiled in title 4, chapter 5, and only after the exhaustion of administrative remedies as provided in this section. (5) Revocation of tax-exempt status. (A) The state board of equalization may revoke any exemption approved under this section, either in whole or in part, if it determines the exemption was approved on the basis of fraud, misrepresentation, or erroneous information; the current owner of the property does not qualify for exemption; or the property is not actually being used for an exempt purpose. Property is not occupied and used for an exempt purpose if the property is not currently in use, has been abandoned, is not suitable for human habitation, or is being used for a nonexempt purpose. (B) The board may initiate proceedings for revocation of a property's tax-exempt status on its own motion or upon the written complaint of any person. Revocation is not retroactive unless the order of revocation incorporates a finding of fraud or misrepresentation on the part of the applicant or failure of the applicant to give notice of a change in the use or ownership of the property as required by this section. (C) The board, the executive secretary, or the executive secretary's designee may determine that property no longer qualifies for property tax exemption or may modify the tax-exempt status of a property. The board shall revoke a property's tax-exempt status through its staff designee. Written notice of the revocation must be sent to the property owner, the county assessor of property, and the county trustee, specifying the date the property's tax-exempt status ends. Written notice includes notification by electronic means, and the record of notice may be preserved in digital or electronic format. Either the county assessor of property or the property owner may appeal the initial determination to the board and is entitled to a hearing prior to any final determination. (D) A revocation is final ninety (90) days after the date the written notice is sent, absent an appeal filed pursuant to § 67-5-1501(c) . An appeal of a revocation of a property's tax-exempt status must be treated as an appeal for purposes of § 67-5-1512 . (c) As used in this section, "charitable institution" includes any nonprofit organization or association devoting its efforts and property, or any portion thereof, exclusively to the improvement of human rights and/or conditions in the community. (d) (1) The property, or any part thereof, owned by any religious, charitable, scientific or educational membership nonprofit organization chartered by the United States congress shall not be denied exemption because administrative, social or recreational activities of such organization are conducted thereon, where the activities are: (A) Agencies for the advancement and enlargement of the purposes for which the organizations exist; (B) In furtherance of the general purposes of such organization; or (C) To promote the interest of its membership in such organizations. (2) When property is owned by corporations organized for the exclusive purpose of holding title to property for use of any organization that itself qualifies for such exemption from taxation under this subsection (d), only such property of the corporation, or such parts thereof, as would be entitled to an exemption under this subsection (d) if owned directly by such organization shall not be denied exemptions. (3) The exemption of property or parts thereof under this subsection (d) shall be applicable only to such part of the property on which such organization conducts administrative, social or recreational activities, if it is less than the entire property. (e) (1) There shall be exempt from property taxation the property of labor organizations exempted from the payment of federal income taxes by the United States Internal Revenue Code ( 26 U.S.C. § 501(c)(5) ), when such property is not used for revenue producing profit, but is used by such organization for charitable or educational meetings; but, if part of the property is used for revenue producing profit, then the part so used shall not be exempt from property taxation; provided, that the real property on which the building is situated shall be exempt from property taxation. (2) No such organization that discriminates against any person based upon race, sex, religious beliefs or national origin shall be eligible for the property tax exemption authorized by subdivision (e)(1). (f) In the case of property that is owned by any religious, charitable, scientific, or educational institution and on which such institution constructs improvements to be occupied and used by such institution or its officers purely and exclusively for carrying out thereupon one (1) or more of the purposes for which the institution was created or exists, the property may be exempt as follows: (1) If construction of the improvements is completed within twelve (12) months of its commencement, the property, to the extent of the value of the land and the value of the improvements constructed thereon, shall be considered to be occupied and used by the institution or its officers purely and exclusively for the institution's purposes from and after, but not before, the commencement of construction of the improvements. Land shall be considered occupied and used by the institution to the extent it is reasonably necessary to support structures or site improvements associated with structures; (2) If construction of the improvements is completed more than twelve (12) months after commencement, the property, to the extent of the value of the improvements constructed thereon for these purposes, shall be considered to be occupied and used by the institution or its officers purely and exclusively for the institution's purposes from and after, but not before, the commencement of construction of the improvements and to the extent of such value shall be exempt from taxation; (3) If the improvements upon completion are not so occupied and used, then no part of the value of the property shall be exempt from taxation during the construction of the improvements; (4) If upon completion of the improvements a portion thereof is not so used and occupied, such portion shall not be exempt from taxation during construction of the improvements; and (5) If the improvements upon completion are not occupied and used by such institution or its officers for a period of ten (10) years, purely and exclusively for carrying out thereupon one (1) or more of the purposes for which such institution was created or exists, the institution shall be liable for the full amount of property taxes that would otherwise have been due and payable during the period of construction, plus penalties and interest as provided in this title. (g) There shall be exempt from property taxation the property or any part thereof of fraternal organizations exempted from the payment of federal income taxes by the United States Internal Revenue Code ( 26 U.S.C. § 501(c) ), to the extent that such property is used not for revenue-producing profit, but directly, physically and exclusively for religious, charitable, scientific and educational activities. (h) There shall be exempt from property taxation the property, or any part thereof, of nonprofit county fair associations. (i) There shall be exempt from property taxation the property or any portion thereof containing one (1) residential dwelling located in a community park that is open to entry by the general public, if such dwelling is owned by a nonprofit religious, charitable, educational or scientific organization that does not receive income from the resident thereof, if such resident does not occupy the dwelling in lieu of a salary, and if such resident, by such resident's presence, would discourage or prohibit damage or destruction by vandalism of the organization's property. (j) There shall be exempt from property taxation any property upon which a caretaker's dwelling is located, if: (1) The dwelling is located upon land owned by a nonprofit member organization chartered by the United States congress; (2) The land immediately surrounding the dwelling is used by such organization for nonprofit religious, charitable, educational or scientific purposes; and (3) The caretaker's presence is required for the physical security of the users of the property as well as to discourage or prohibit damage or destruction of the organization's property by vandalism. (k) The general assembly finds that public radio broadcasting serves a valid educational purpose so long as the broadcaster holds an educational broadcast license issued by the federal communications commission; and, therefore, that property, or any part thereof, owned by a public radio station that is an affiliate member of the public broadcasting network, and that is organized as a nonprofit charitable or educational institution, shall be exempt from property taxation to the extent the property is used in a manner consistent with the license. (l) The general assembly finds that public television broadcasting serves a valid educational purpose so long as the broadcaster holds a noncommercial educational broadcast license issued by the federal communications commission. Therefore, that property, or any part thereof, owned by a public television station that is an affiliate member of the public broadcasting network, and that is organized as a nonprofit charitable or educational institution, shall be exempt from property taxation to the extent the property is used in a manner consistent with the license. (m) There shall be exempt from property taxation the real and personal property, or any part thereof, that is owned by a religious or charitable institution and that is occupied and used by such institution for a thrift shop; provided, that: (1) The institution is exempt from payment of federal income taxes under Section 501(c)(3) of the Internal Revenue Code ( 26 U.S.C. § 501(c)(3) ); (2) (A) The thrift shop is operated as a training venue for persons in need of occupational rehabilitation; or (B) The thrift shop is operated primarily by volunteers; (3) The inventory of the thrift shop is obtained by donation to the institution that owns and operates the shop; (4) Goods are priced at levels generally ascribed to used property; (5) Goods are given to persons whose financial situations preclude payment; and (6) The net proceeds of the thrift shop are used solely for the charitable purposes of the institution that owns and operates the shop. (n) Land not necessary to support exempt structures or site improvements associated with exempt structures, including land used for recreation, retreats or sanctuaries, shall not be eligible for exemption beyond a maximum of one hundred (100) acres per county for each religious, charitable, scientific or nonprofit educational institution qualified for exemption pursuant to this section. For purposes of applying this limit, land owned by an exempt institution shall be aggregated with land owned by related exempt institutions having common ownership or control. Qualifying land in excess of the limit shall be classified as forest land upon application submitted pursuant to § 67-5-1006 , or as open space land upon application submitted pursuant to § 67-5-1007 , and the effective date of the classification shall be the date the property might otherwise have qualified for exemption. Amended by 2024 Tenn. Acts, ch. 1028,s 1, eff. 5/28/2024. Amended by 2022 Tenn. Acts, ch. 698, s 2, eff. 3/18/2022. Amended by 2019 Tenn. Acts, ch. 355, Secs.s 2, s 3, s 4, s 5 eff. 5/10/2019. Amended by 2018 Tenn. Acts, ch. 957, s 1, eff. 5/15/2018. Amended by 2018 Tenn. Acts, ch. 527, s 1, eff. 3/7/2018. Amended by 2017 Tenn. Acts, ch. 465, s 1, eff. 5/25/2017. Amended by 2017 Tenn. Acts, ch. 155, s 1, eff. 7/1/2017. Amended by 2013 Tenn. Acts, ch. 209, s 5, eff. 4/23/2013. Acts 1973, ch. 226, § 5; 1974, ch. 771, §§ 5-7; 1974, ch. 774, §§ 1, 2; 1975, ch. 322, § 1; 1976, ch. 670, §§ 1, 2; 1976, ch. 849, § 1; 1977, ch. 255, §§ 1, 2; 1977, ch. 421, §§ 1-5; 1979, ch. 22, § 1; 1981, ch. 96, § 1; 1981, ch. 218, § 1; 1981, ch. 306, §§ 1, 2; 1982, ch. 713, § 1; 1983, ch. 460, § 1; T.C.A., § 67-513; Acts 1984, ch. 507, § 1; 1984, ch. 651, § 1; 1984, ch. 749, § 1; 1984, ch. 766, § 1; 1984, ch. 809, § 1; 1984, ch. 832, § 4; 1985, ch. 68, § 1; 1994, ch. 541, §§ 2-8; 1997 , ch. 467, § 1; 2000, ch. 628, § 1; 2000, ch. 793, § 1; 2000, ch. 938, § 2; 2000, ch. 993, § 2; 2002, ch. 687, §§ 1, 2; 2003 , ch. 251, § 1; 2004, ch. 531, § 2; 2004, ch. 635, § 1; 2004, ch. 732, §§ 1, 2; 2005, ch. 500, § 12(a); 2006, ch. 740, § 1; 2006, ch. 861, § 1; 2007 , ch. 292, § 2; 2008 , ch. 1104, §§ 2-4; 2010 , ch. 1036, § 2; 2010 , ch. 1074, § 1; 2011 , ch. 415, § 1.
(a) (1) There shall be exempt from property taxation the real and personal property, or any part of the real and personal property, owned by any religious, charitable, scientific, or nonprofit educational institution that is occupied and actually used by the institution or its officers purely and exclusively for carrying out one (1) or more of the exempt purposes for which the institution was created or exists. There shall further be exempt from property taxation the real and personal property, or any part of the real and personal property, owned by an exempt institution, but occupied and actually used by: (A) Another religious, charitable, scientific, or nonprofit educational institution or its officers purely and exclusively for carrying out one (1) or more of the exempt purposes for which the occupying institution was created or exists; (B) An exempt institution that originated as part of a single exempt institution and that continues to use the property for the same religious, charitable, scientific, or nonprofit educational purposes, whether by charter, contract, or other agreement or arrangement; or (C) The United States government, the state of Tennessee, or any agency or political subdivision thereof. (2) In determining the exemption applicable to a post-secondary educational institution, there shall be a presumption that the entire original campus of an institution chartered before 1930 is an historical and integral entity, and is exempt so long as no particular portion of such campus is used for nonexempt purposes. (3) (A) The property of such institution shall not be exempt, if: (i) The owner, or any stockholder, officer, member, or employee of such institution shall receive or may be lawfully entitled to receive any pecuniary profit from the operations of that property in competition with like property owned by others that is not exempt, except reasonable compensation for services in effecting one (1) or more of such purposes, or as proper beneficiaries of its strictly religious, charitable, scientific, or educational purposes; or (ii) The organization thereof for any such avowed purpose be a guise or pretense for directly or indirectly making any other pecuniary profit for such institution, or for any of its members or employees, or if it be not in good faith organized or conducted exclusively for one (1) or more of these purposes. (B) The real property of any such institution not so used exclusively for carrying out thereupon one (1) or more of such purposes, but leased or otherwise used for other purposes, whether the income received therefrom be used for one (1) or more of such purposes or not, shall not be exempt; but, if a portion only of any lot or building of any such institution is used purely and exclusively for carrying out thereupon one (1) or more of such purposes of such institution, then such lot or building shall be so exempt only to the extent of the value of the portion so used, and the remaining or other portion shall be subject to taxation. (4) No church shall be granted an exemption on more than one (1) parsonage, and an exempt parsonage may not include within the exemption more than three (3) acres. (5) For property owned by a corporation organized for the exclusive purpose of holding title to property for use by any organization that itself qualifies for exemption under this section, only such property of the corporation, or such parts thereof, as would be entitled to an exemption under this section if owned directly by such organization shall be exempt from property taxation.
(1) There shall be exempt from property taxation the real and personal property, or any part of the real and personal property, owned by any religious, charitable, scientific, or nonprofit educational institution that is occupied and actually used by the institution or its officers purely and exclusively for carrying out one (1) or more of the exempt purposes for which the institution was created or exists. There shall further be exempt from property taxation the real and personal property, or any part of the real and personal property, owned by an exempt institution, but occupied and actually used by: (A) Another religious, charitable, scientific, or nonprofit educational institution or its officers purely and exclusively for carrying out one (1) or more of the exempt purposes for which the occupying institution was created or exists; (B) An exempt institution that originated as part of a single exempt institution and that continues to use the property for the same religious, charitable, scientific, or nonprofit educational purposes, whether by charter, contract, or other agreement or arrangement; or (C) The United States government, the state of Tennessee, or any agency or political subdivision thereof.
(A) Another religious, charitable, scientific, or nonprofit educational institution or its officers purely and exclusively for carrying out one (1) or more of the exempt purposes for which the occupying institution was created or exists;
(B) An exempt institution that originated as part of a single exempt institution and that continues to use the property for the same religious, charitable, scientific, or nonprofit educational purposes, whether by charter, contract, or other agreement or arrangement; or
(C) The United States government, the state of Tennessee, or any agency or political subdivision thereof.
(2) In determining the exemption applicable to a post-secondary educational institution, there shall be a presumption that the entire original campus of an institution chartered before 1930 is an historical and integral entity, and is exempt so long as no particular portion of such campus is used for nonexempt purposes.
(3) (A) The property of such institution shall not be exempt, if: (i) The owner, or any stockholder, officer, member, or employee of such institution shall receive or may be lawfully entitled to receive any pecuniary profit from the operations of that property in competition with like property owned by others that is not exempt, except reasonable compensation for services in effecting one (1) or more of such purposes, or as proper beneficiaries of its strictly religious, charitable, scientific, or educational purposes; or (ii) The organization thereof for any such avowed purpose be a guise or pretense for directly or indirectly making any other pecuniary profit for such institution, or for any of its members or employees, or if it be not in good faith organized or conducted exclusively for one (1) or more of these purposes. (B) The real property of any such institution not so used exclusively for carrying out thereupon one (1) or more of such purposes, but leased or otherwise used for other purposes, whether the income received therefrom be used for one (1) or more of such purposes or not, shall not be exempt; but, if a portion only of any lot or building of any such institution is used purely and exclusively for carrying out thereupon one (1) or more of such purposes of such institution, then such lot or building shall be so exempt only to the extent of the value of the portion so used, and the remaining or other portion shall be subject to taxation.
(A) The property of such institution shall not be exempt, if: (i) The owner, or any stockholder, officer, member, or employee of such institution shall receive or may be lawfully entitled to receive any pecuniary profit from the operations of that property in competition with like property owned by others that is not exempt, except reasonable compensation for services in effecting one (1) or more of such purposes, or as proper beneficiaries of its strictly religious, charitable, scientific, or educational purposes; or (ii) The organization thereof for any such avowed purpose be a guise or pretense for directly or indirectly making any other pecuniary profit for such institution, or for any of its members or employees, or if it be not in good faith organized or conducted exclusively for one (1) or more of these purposes.
(i) The owner, or any stockholder, officer, member, or employee of such institution shall receive or may be lawfully entitled to receive any pecuniary profit from the operations of that property in competition with like property owned by others that is not exempt, except reasonable compensation for services in effecting one (1) or more of such purposes, or as proper beneficiaries of its strictly religious, charitable, scientific, or educational purposes; or
(ii) The organization thereof for any such avowed purpose be a guise or pretense for directly or indirectly making any other pecuniary profit for such institution, or for any of its members or employees, or if it be not in good faith organized or conducted exclusively for one (1) or more of these purposes.
(B) The real property of any such institution not so used exclusively for carrying out thereupon one (1) or more of such purposes, but leased or otherwise used for other purposes, whether the income received therefrom be used for one (1) or more of such purposes or not, shall not be exempt; but, if a portion only of any lot or building of any such institution is used purely and exclusively for carrying out thereupon one (1) or more of such purposes of such institution, then such lot or building shall be so exempt only to the extent of the value of the portion so used, and the remaining or other portion shall be subject to taxation.
(4) No church shall be granted an exemption on more than one (1) parsonage, and an exempt parsonage may not include within the exemption more than three (3) acres.
(5) For property owned by a corporation organized for the exclusive purpose of holding title to property for use by any organization that itself qualifies for exemption under this section, only such property of the corporation, or such parts thereof, as would be entitled to an exemption under this section if owned directly by such organization shall be exempt from property taxation.
(b) (1) Any owner of real or personal property claiming exemption under this section or § 67-5-207 , § 67-5-213 , § 67-5-219 , or as otherwise required by law, shall file an application for the exemption with the state board of equalization on a form prescribed by the board and supply such further information as the board may require to determine whether the property qualifies for exemption. No property that is subject to these application requirements shall be exempted from property taxes unless the application has been approved in writing by the board. An application shall be deemed filed on the date it is received by the board or, if mailed, on the postmark date. The applicant shall provide a copy of the application with any supporting materials to the assessor of property of the county in which the property is located. An application for exemption pursuant to this section or any other section referring to these procedures shall be treated as an appeal for purposes of § 67-5-1512 . (2) The board shall make an initial determination granting or denying exemption through its staff designee, who shall send written notice of the initial determination to the applicant and the assessor of property. Written notice includes notification by electronic means and notice may be preserved in digital or electronic format. Either the assessor of property or the applicant may appeal the initial determination to the board and shall be entitled to a hearing prior to any final determination of exemption. The assessor shall retain copies of any approved exemptions in paper, electronic, or digital format. Upon approval of exemption, it is not necessary that the applicant reapply each year, but the exemption shall not be transferable or assignable and the applicant shall promptly report to the assessor any change in the use or ownership of the property that might affect its exempt status. The board may by rule impose a filing fee for processing applications for exemption. Such filing fee shall not exceed one hundred twenty dollars ($120) and shall be proportionate to the value of the property at issue. For purposes of this section, "filing" means one (1) submission that may include multiple parcels, including real and personal property, with a clear nexus to one (1) exemption determination. (3) (A) Any institution claiming an exemption under this section that has not previously filed an application for and been granted an exemption for a parcel must file an application for exemption with the state board of equalization by May 20 of the year for which exemption is sought. If the application is approved, the exemption will be effective as of January 1 of the year of application or as of the date the exempt use of such parcel began, whichever is later. If application is made after May 20 of the year for which exemption is sought, but prior to the end of the year, the application may be approved but will be effective for only a portion of the year determined as follows: (i) If application is filed within thirty (30) days after the exempt use of the property began, exemption will be effective as of the date the exempt use began; or (ii) If application is filed more than thirty (30) days after the exempt use began, the exemption will be effective as of the date of application. (B) If a religious institution acquires property that was duly exempt at the time of transfer from a transferor who had previously been approved for a religious use exemption of the property, or if a religious institution acquires property to replace its own exempt property, then the effective date of exemption shall be three (3) years prior to the date of application, or the date the acquiring institution began to use the property for religious purposes, whichever is later. The purpose of this subdivision (b)(3) is to provide continuity of exempt status for property transferred from one exempt religious institution to another in the specified circumstances. For purposes of this subdivision (b)(3), property transferred by a lender following foreclosure shall be deemed to have been transferred by the foreclosed debtor, whether or not the property was assessed in the name of the lender during the lender's possession. (C) In any county having a metropolitan form of government and a population in excess of five hundred thousand (500,000), according to the 2010 federal census or any subsequent federal census, if a nonprofit educational institution which is a medical college acquires one (1) or more parcels of land or portions thereof for the purpose of carrying out one (1) or more of the exempt purposes for which the institution was created or exists, the institution may claim and file an application for exemption under this section or § 67-5-213 , and the effective date of such exemption shall be up to three (3) years prior to the date of application, or the date the institution began to use the property for exempt purposes, whichever is later. This subdivision (b)(3)(C) shall apply to properties acquired before May 25, 2017, so that such properties are not subject to taxation under this chapter while owned by the exempt educational institution and used for one (1) or more of the exempt purposes for which the institution was created or exists; provided, however, that nothing in this subdivision (b)(3)(C) requires a county to refund any taxes that were collected prior to May 25, 2017. (D) In any county with a population of not less than four hundred thirty-two thousand two hundred (432,200) nor more than four-hundred thirty-two thousand three hundred (432,300), according to the 2010 federal census or any subsequent federal census, or within a municipality located within such county, if a nonprofit children's hospital changes the use of one (1) or more parcels of land or portions thereof for the purpose of carrying out one (1) or more of the exempt purposes for which the institution was created or exists, the institution may claim and file an application for exemption under this section or § 67-5-213 , and the effective date of such exemption shall be up to three (3) years prior to the date of application, or the date the institution began to use the property for exempt purposes, whichever is later. In determining the date that a qualifying institution begins using property for an exempt purpose, subsection (g) applies to the full extent of both improvements and underlying real property so that the entire property, to the extent that the full value of underlying land and any improvements thereon, is considered to be occupied and used by the qualifying institution or its officers purely and exclusively for the institution's purposes from and after the commencement of construction of improvements. This subdivision (b)(3)(D) applies to properties acquired before May 15, 2018, so that such properties are not subject to taxation under this chapter while owned by the qualifying institution and used for one (1) or more of the exempt purposes for which the institution was created or exists, and any property taxes paid on such property that were collected prior to May 15, 2018, shall be refunded. (E) In any county with a population of not less than four hundred seventy-eight thousand nine hundred (478,900) nor more than four-hundred seventy-nine thousand (479,000), according to the 2020 federal census or a subsequent federal census, or within a municipality located within the county, if a charitable nonprofit corporation acquires property for use as a licensed residential home for the aged to replace its own exempt property that was used as a licensed residential home for the aged, then the charitable nonprofit corporation may claim and file an application for exemption under this section, and the effective date of exemption is up to three (3) years prior to the date of application, or the date the corporation began to use the property for exempt purposes, whichever is later. In determining the date that a qualifying corporation begins using property for an exempt purpose, subsection (g) applies to the full extent of both improvements and underlying real property so that the entire property, to the extent that the full value of underlying land and any improvements thereon, is considered to be occupied and used by the qualifying corporation or its officers purely and exclusively for the corporation's purposes from and after the commencement of construction of improvements. This subdivision (b)(3)(E) applies to properties acquired before May 28, 2024, so that the properties are not subject to taxation under this chapter while owned by the qualifying corporation and used for one (1) or more of the exempt purposes for which the corporation was created or exists, and any property taxes, interest, fees, penalties, postage, expenses, and all other related costs paid on the property that were collected prior to May 28, 2024 must be refunded. (4) All questions of exemption under this section shall be subject to review and final determination by the board; provided, that any determination by the board is subject to judicial review by petition of certiorari to the appropriate chancery court. All other provisions of law notwithstanding, no property shall be entitled to judicial review of its status under this statute, except as provided by the Uniform Administrative Procedures Act, compiled in title 4, chapter 5, and only after the exhaustion of administrative remedies as provided in this section. (5) Revocation of tax-exempt status. (A) The state board of equalization may revoke any exemption approved under this section, either in whole or in part, if it determines the exemption was approved on the basis of fraud, misrepresentation, or erroneous information; the current owner of the property does not qualify for exemption; or the property is not actually being used for an exempt purpose. Property is not occupied and used for an exempt purpose if the property is not currently in use, has been abandoned, is not suitable for human habitation, or is being used for a nonexempt purpose. (B) The board may initiate proceedings for revocation of a property's tax-exempt status on its own motion or upon the written complaint of any person. Revocation is not retroactive unless the order of revocation incorporates a finding of fraud or misrepresentation on the part of the applicant or failure of the applicant to give notice of a change in the use or ownership of the property as required by this section. (C) The board, the executive secretary, or the executive secretary's designee may determine that property no longer qualifies for property tax exemption or may modify the tax-exempt status of a property. The board shall revoke a property's tax-exempt status through its staff designee. Written notice of the revocation must be sent to the property owner, the county assessor of property, and the county trustee, specifying the date the property's tax-exempt status ends. Written notice includes notification by electronic means, and the record of notice may be preserved in digital or electronic format. Either the county assessor of property or the property owner may appeal the initial determination to the board and is entitled to a hearing prior to any final determination. (D) A revocation is final ninety (90) days after the date the written notice is sent, absent an appeal filed pursuant to § 67-5-1501(c) . An appeal of a revocation of a property's tax-exempt status must be treated as an appeal for purposes of § 67-5-1512 .
(1) Any owner of real or personal property claiming exemption under this section or § 67-5-207 , § 67-5-213 , § 67-5-219 , or as otherwise required by law, shall file an application for the exemption with the state board of equalization on a form prescribed by the board and supply such further information as the board may require to determine whether the property qualifies for exemption. No property that is subject to these application requirements shall be exempted from property taxes unless the application has been approved in writing by the board. An application shall be deemed filed on the date it is received by the board or, if mailed, on the postmark date. The applicant shall provide a copy of the application with any supporting materials to the assessor of property of the county in which the property is located. An application for exemption pursuant to this section or any other section referring to these procedures shall be treated as an appeal for purposes of § 67-5-1512 .
(2) The board shall make an initial determination granting or denying exemption through its staff designee, who shall send written notice of the initial determination to the applicant and the assessor of property. Written notice includes notification by electronic means and notice may be preserved in digital or electronic format. Either the assessor of property or the applicant may appeal the initial determination to the board and shall be entitled to a hearing prior to any final determination of exemption. The assessor shall retain copies of any approved exemptions in paper, electronic, or digital format. Upon approval of exemption, it is not necessary that the applicant reapply each year, but the exemption shall not be transferable or assignable and the applicant shall promptly report to the assessor any change in the use or ownership of the property that might affect its exempt status. The board may by rule impose a filing fee for processing applications for exemption. Such filing fee shall not exceed one hundred twenty dollars ($120) and shall be proportionate to the value of the property at issue. For purposes of this section, "filing" means one (1) submission that may include multiple parcels, including real and personal property, with a clear nexus to one (1) exemption determination.
(3) (A) Any institution claiming an exemption under this section that has not previously filed an application for and been granted an exemption for a parcel must file an application for exemption with the state board of equalization by May 20 of the year for which exemption is sought. If the application is approved, the exemption will be effective as of January 1 of the year of application or as of the date the exempt use of such parcel began, whichever is later. If application is made after May 20 of the year for which exemption is sought, but prior to the end of the year, the application may be approved but will be effective for only a portion of the year determined as follows: (i) If application is filed within thirty (30) days after the exempt use of the property began, exemption will be effective as of the date the exempt use began; or (ii) If application is filed more than thirty (30) days after the exempt use began, the exemption will be effective as of the date of application. (B) If a religious institution acquires property that was duly exempt at the time of transfer from a transferor who had previously been approved for a religious use exemption of the property, or if a religious institution acquires property to replace its own exempt property, then the effective date of exemption shall be three (3) years prior to the date of application, or the date the acquiring institution began to use the property for religious purposes, whichever is later. The purpose of this subdivision (b)(3) is to provide continuity of exempt status for property transferred from one exempt religious institution to another in the specified circumstances. For purposes of this subdivision (b)(3), property transferred by a lender following foreclosure shall be deemed to have been transferred by the foreclosed debtor, whether or not the property was assessed in the name of the lender during the lender's possession. (C) In any county having a metropolitan form of government and a population in excess of five hundred thousand (500,000), according to the 2010 federal census or any subsequent federal census, if a nonprofit educational institution which is a medical college acquires one (1) or more parcels of land or portions thereof for the purpose of carrying out one (1) or more of the exempt purposes for which the institution was created or exists, the institution may claim and file an application for exemption under this section or § 67-5-213 , and the effective date of such exemption shall be up to three (3) years prior to the date of application, or the date the institution began to use the property for exempt purposes, whichever is later. This subdivision (b)(3)(C) shall apply to properties acquired before May 25, 2017, so that such properties are not subject to taxation under this chapter while owned by the exempt educational institution and used for one (1) or more of the exempt purposes for which the institution was created or exists; provided, however, that nothing in this subdivision (b)(3)(C) requires a county to refund any taxes that were collected prior to May 25, 2017. (D) In any county with a population of not less than four hundred thirty-two thousand two hundred (432,200) nor more than four-hundred thirty-two thousand three hundred (432,300), according to the 2010 federal census or any subsequent federal census, or within a municipality located within such county, if a nonprofit children's hospital changes the use of one (1) or more parcels of land or portions thereof for the purpose of carrying out one (1) or more of the exempt purposes for which the institution was created or exists, the institution may claim and file an application for exemption under this section or § 67-5-213 , and the effective date of such exemption shall be up to three (3) years prior to the date of application, or the date the institution began to use the property for exempt purposes, whichever is later. In determining the date that a qualifying institution begins using property for an exempt purpose, subsection (g) applies to the full extent of both improvements and underlying real property so that the entire property, to the extent that the full value of underlying land and any improvements thereon, is considered to be occupied and used by the qualifying institution or its officers purely and exclusively for the institution's purposes from and after the commencement of construction of improvements. This subdivision (b)(3)(D) applies to properties acquired before May 15, 2018, so that such properties are not subject to taxation under this chapter while owned by the qualifying institution and used for one (1) or more of the exempt purposes for which the institution was created or exists, and any property taxes paid on such property that were collected prior to May 15, 2018, shall be refunded. (E) In any county with a population of not less than four hundred seventy-eight thousand nine hundred (478,900) nor more than four-hundred seventy-nine thousand (479,000), according to the 2020 federal census or a subsequent federal census, or within a municipality located within the county, if a charitable nonprofit corporation acquires property for use as a licensed residential home for the aged to replace its own exempt property that was used as a licensed residential home for the aged, then the charitable nonprofit corporation may claim and file an application for exemption under this section, and the effective date of exemption is up to three (3) years prior to the date of application, or the date the corporation began to use the property for exempt purposes, whichever is later. In determining the date that a qualifying corporation begins using property for an exempt purpose, subsection (g) applies to the full extent of both improvements and underlying real property so that the entire property, to the extent that the full value of underlying land and any improvements thereon, is considered to be occupied and used by the qualifying corporation or its officers purely and exclusively for the corporation's purposes from and after the commencement of construction of improvements. This subdivision (b)(3)(E) applies to properties acquired before May 28, 2024, so that the properties are not subject to taxation under this chapter while owned by the qualifying corporation and used for one (1) or more of the exempt purposes for which the corporation was created or exists, and any property taxes, interest, fees, penalties, postage, expenses, and all other related costs paid on the property that were collected prior to May 28, 2024 must be refunded.
(A) Any institution claiming an exemption under this section that has not previously filed an application for and been granted an exemption for a parcel must file an application for exemption with the state board of equalization by May 20 of the year for which exemption is sought. If the application is approved, the exemption will be effective as of January 1 of the year of application or as of the date the exempt use of such parcel began, whichever is later. If application is made after May 20 of the year for which exemption is sought, but prior to the end of the year, the application may be approved but will be effective for only a portion of the year determined as follows: (i) If application is filed within thirty (30) days after the exempt use of the property began, exemption will be effective as of the date the exempt use began; or (ii) If application is filed more than thirty (30) days after the exempt use began, the exemption will be effective as of the date of application.
(i) If application is filed within thirty (30) days after the exempt use of the property began, exemption will be effective as of the date the exempt use began; or
(ii) If application is filed more than thirty (30) days after the exempt use began, the exemption will be effective as of the date of application.
(B) If a religious institution acquires property that was duly exempt at the time of transfer from a transferor who had previously been approved for a religious use exemption of the property, or if a religious institution acquires property to replace its own exempt property, then the effective date of exemption shall be three (3) years prior to the date of application, or the date the acquiring institution began to use the property for religious purposes, whichever is later. The purpose of this subdivision (b)(3) is to provide continuity of exempt status for property transferred from one exempt religious institution to another in the specified circumstances. For purposes of this subdivision (b)(3), property transferred by a lender following foreclosure shall be deemed to have been transferred by the foreclosed debtor, whether or not the property was assessed in the name of the lender during the lender's possession.
(C) In any county having a metropolitan form of government and a population in excess of five hundred thousand (500,000), according to the 2010 federal census or any subsequent federal census, if a nonprofit educational institution which is a medical college acquires one (1) or more parcels of land or portions thereof for the purpose of carrying out one (1) or more of the exempt purposes for which the institution was created or exists, the institution may claim and file an application for exemption under this section or § 67-5-213 , and the effective date of such exemption shall be up to three (3) years prior to the date of application, or the date the institution began to use the property for exempt purposes, whichever is later. This subdivision (b)(3)(C) shall apply to properties acquired before May 25, 2017, so that such properties are not subject to taxation under this chapter while owned by the exempt educational institution and used for one (1) or more of the exempt purposes for which the institution was created or exists; provided, however, that nothing in this subdivision (b)(3)(C) requires a county to refund any taxes that were collected prior to May 25, 2017.
(D) In any county with a population of not less than four hundred thirty-two thousand two hundred (432,200) nor more than four-hundred thirty-two thousand three hundred (432,300), according to the 2010 federal census or any subsequent federal census, or within a municipality located within such county, if a nonprofit children's hospital changes the use of one (1) or more parcels of land or portions thereof for the purpose of carrying out one (1) or more of the exempt purposes for which the institution was created or exists, the institution may claim and file an application for exemption under this section or § 67-5-213 , and the effective date of such exemption shall be up to three (3) years prior to the date of application, or the date the institution began to use the property for exempt purposes, whichever is later. In determining the date that a qualifying institution begins using property for an exempt purpose, subsection (g) applies to the full extent of both improvements and underlying real property so that the entire property, to the extent that the full value of underlying land and any improvements thereon, is considered to be occupied and used by the qualifying institution or its officers purely and exclusively for the institution's purposes from and after the commencement of construction of improvements. This subdivision (b)(3)(D) applies to properties acquired before May 15, 2018, so that such properties are not subject to taxation under this chapter while owned by the qualifying institution and used for one (1) or more of the exempt purposes for which the institution was created or exists, and any property taxes paid on such property that were collected prior to May 15, 2018, shall be refunded.
(E) In any county with a population of not less than four hundred seventy-eight thousand nine hundred (478,900) nor more than four-hundred seventy-nine thousand (479,000), according to the 2020 federal census or a subsequent federal census, or within a municipality located within the county, if a charitable nonprofit corporation acquires property for use as a licensed residential home for the aged to replace its own exempt property that was used as a licensed residential home for the aged, then the charitable nonprofit corporation may claim and file an application for exemption under this section, and the effective date of exemption is up to three (3) years prior to the date of application, or the date the corporation began to use the property for exempt purposes, whichever is later. In determining the date that a qualifying corporation begins using property for an exempt purpose, subsection (g) applies to the full extent of both improvements and underlying real property so that the entire property, to the extent that the full value of underlying land and any improvements thereon, is considered to be occupied and used by the qualifying corporation or its officers purely and exclusively for the corporation's purposes from and after the commencement of construction of improvements. This subdivision (b)(3)(E) applies to properties acquired before May 28, 2024, so that the properties are not subject to taxation under this chapter while owned by the qualifying corporation and used for one (1) or more of the exempt purposes for which the corporation was created or exists, and any property taxes, interest, fees, penalties, postage, expenses, and all other related costs paid on the property that were collected prior to May 28, 2024 must be refunded.
(4) All questions of exemption under this section shall be subject to review and final determination by the board; provided, that any determination by the board is subject to judicial review by petition of certiorari to the appropriate chancery court. All other provisions of law notwithstanding, no property shall be entitled to judicial review of its status under this statute, except as provided by the Uniform Administrative Procedures Act, compiled in title 4, chapter 5, and only after the exhaustion of administrative remedies as provided in this section.
(5) Revocation of tax-exempt status. (A) The state board of equalization may revoke any exemption approved under this section, either in whole or in part, if it determines the exemption was approved on the basis of fraud, misrepresentation, or erroneous information; the current owner of the property does not qualify for exemption; or the property is not actually being used for an exempt purpose. Property is not occupied and used for an exempt purpose if the property is not currently in use, has been abandoned, is not suitable for human habitation, or is being used for a nonexempt purpose. (B) The board may initiate proceedings for revocation of a property's tax-exempt status on its own motion or upon the written complaint of any person. Revocation is not retroactive unless the order of revocation incorporates a finding of fraud or misrepresentation on the part of the applicant or failure of the applicant to give notice of a change in the use or ownership of the property as required by this section. (C) The board, the executive secretary, or the executive secretary's designee may determine that property no longer qualifies for property tax exemption or may modify the tax-exempt status of a property. The board shall revoke a property's tax-exempt status through its staff designee. Written notice of the revocation must be sent to the property owner, the county assessor of property, and the county trustee, specifying the date the property's tax-exempt status ends. Written notice includes notification by electronic means, and the record of notice may be preserved in digital or electronic format. Either the county assessor of property or the property owner may appeal the initial determination to the board and is entitled to a hearing prior to any final determination. (D) A revocation is final ninety (90) days after the date the written notice is sent, absent an appeal filed pursuant to § 67-5-1501(c) . An appeal of a revocation of a property's tax-exempt status must be treated as an appeal for purposes of § 67-5-1512 .
(A) The state board of equalization may revoke any exemption approved under this section, either in whole or in part, if it determines the exemption was approved on the basis of fraud, misrepresentation, or erroneous information; the current owner of the property does not qualify for exemption; or the property is not actually being used for an exempt purpose. Property is not occupied and used for an exempt purpose if the property is not currently in use, has been abandoned, is not suitable for human habitation, or is being used for a nonexempt purpose.
(B) The board may initiate proceedings for revocation of a property's tax-exempt status on its own motion or upon the written complaint of any person. Revocation is not retroactive unless the order of revocation incorporates a finding of fraud or misrepresentation on the part of the applicant or failure of the applicant to give notice of a change in the use or ownership of the property as required by this section.
(C) The board, the executive secretary, or the executive secretary's designee may determine that property no longer qualifies for property tax exemption or may modify the tax-exempt status of a property. The board shall revoke a property's tax-exempt status through its staff designee. Written notice of the revocation must be sent to the property owner, the county assessor of property, and the county trustee, specifying the date the property's tax-exempt status ends. Written notice includes notification by electronic means, and the record of notice may be preserved in digital or electronic format. Either the county assessor of property or the property owner may appeal the initial determination to the board and is entitled to a hearing prior to any final determination.
(D) A revocation is final ninety (90) days after the date the written notice is sent, absent an appeal filed pursuant to § 67-5-1501(c) . An appeal of a revocation of a property's tax-exempt status must be treated as an appeal for purposes of § 67-5-1512 .
(c) As used in this section, "charitable institution" includes any nonprofit organization or association devoting its efforts and property, or any portion thereof, exclusively to the improvement of human rights and/or conditions in the community.
(d) (1) The property, or any part thereof, owned by any religious, charitable, scientific or educational membership nonprofit organization chartered by the United States congress shall not be denied exemption because administrative, social or recreational activities of such organization are conducted thereon, where the activities are: (A) Agencies for the advancement and enlargement of the purposes for which the organizations exist; (B) In furtherance of the general purposes of such organization; or (C) To promote the interest of its membership in such organizations. (2) When property is owned by corporations organized for the exclusive purpose of holding title to property for use of any organization that itself qualifies for such exemption from taxation under this subsection (d), only such property of the corporation, or such parts thereof, as would be entitled to an exemption under this subsection (d) if owned directly by such organization shall not be denied exemptions. (3) The exemption of property or parts thereof under this subsection (d) shall be applicable only to such part of the property on which such organization conducts administrative, social or recreational activities, if it is less than the entire property.
(1) The property, or any part thereof, owned by any religious, charitable, scientific or educational membership nonprofit organization chartered by the United States congress shall not be denied exemption because administrative, social or recreational activities of such organization are conducted thereon, where the activities are: (A) Agencies for the advancement and enlargement of the purposes for which the organizations exist; (B) In furtherance of the general purposes of such organization; or (C) To promote the interest of its membership in such organizations.
(A) Agencies for the advancement and enlargement of the purposes for which the organizations exist;
(B) In furtherance of the general purposes of such organization; or
(C) To promote the interest of its membership in such organizations.
(2) When property is owned by corporations organized for the exclusive purpose of holding title to property for use of any organization that itself qualifies for such exemption from taxation under this subsection (d), only such property of the corporation, or such parts thereof, as would be entitled to an exemption under this subsection (d) if owned directly by such organization shall not be denied exemptions.
(3) The exemption of property or parts thereof under this subsection (d) shall be applicable only to such part of the property on which such organization conducts administrative, social or recreational activities, if it is less than the entire property.
(e) (1) There shall be exempt from property taxation the property of labor organizations exempted from the payment of federal income taxes by the United States Internal Revenue Code ( 26 U.S.C. § 501(c)(5) ), when such property is not used for revenue producing profit, but is used by such organization for charitable or educational meetings; but, if part of the property is used for revenue producing profit, then the part so used shall not be exempt from property taxation; provided, that the real property on which the building is situated shall be exempt from property taxation. (2) No such organization that discriminates against any person based upon race, sex, religious beliefs or national origin shall be eligible for the property tax exemption authorized by subdivision (e)(1).
(1) There shall be exempt from property taxation the property of labor organizations exempted from the payment of federal income taxes by the United States Internal Revenue Code ( 26 U.S.C. § 501(c)(5) ), when such property is not used for revenue producing profit, but is used by such organization for charitable or educational meetings; but, if part of the property is used for revenue producing profit, then the part so used shall not be exempt from property taxation; provided, that the real property on which the building is situated shall be exempt from property taxation.
(2) No such organization that discriminates against any person based upon race, sex, religious beliefs or national origin shall be eligible for the property tax exemption authorized by subdivision (e)(1).
(f) In the case of property that is owned by any religious, charitable, scientific, or educational institution and on which such institution constructs improvements to be occupied and used by such institution or its officers purely and exclusively for carrying out thereupon one (1) or more of the purposes for which the institution was created or exists, the property may be exempt as follows: (1) If construction of the improvements is completed within twelve (12) months of its commencement, the property, to the extent of the value of the land and the value of the improvements constructed thereon, shall be considered to be occupied and used by the institution or its officers purely and exclusively for the institution's purposes from and after, but not before, the commencement of construction of the improvements. Land shall be considered occupied and used by the institution to the extent it is reasonably necessary to support structures or site improvements associated with structures; (2) If construction of the improvements is completed more than twelve (12) months after commencement, the property, to the extent of the value of the improvements constructed thereon for these purposes, shall be considered to be occupied and used by the institution or its officers purely and exclusively for the institution's purposes from and after, but not before, the commencement of construction of the improvements and to the extent of such value shall be exempt from taxation; (3) If the improvements upon completion are not so occupied and used, then no part of the value of the property shall be exempt from taxation during the construction of the improvements; (4) If upon completion of the improvements a portion thereof is not so used and occupied, such portion shall not be exempt from taxation during construction of the improvements; and (5) If the improvements upon completion are not occupied and used by such institution or its officers for a period of ten (10) years, purely and exclusively for carrying out thereupon one (1) or more of the purposes for which such institution was created or exists, the institution shall be liable for the full amount of property taxes that would otherwise have been due and payable during the period of construction, plus penalties and interest as provided in this title.
(1) If construction of the improvements is completed within twelve (12) months of its commencement, the property, to the extent of the value of the land and the value of the improvements constructed thereon, shall be considered to be occupied and used by the institution or its officers purely and exclusively for the institution's purposes from and after, but not before, the commencement of construction of the improvements. Land shall be considered occupied and used by the institution to the extent it is reasonably necessary to support structures or site improvements associated with structures;
(2) If construction of the improvements is completed more than twelve (12) months after commencement, the property, to the extent of the value of the improvements constructed thereon for these purposes, shall be considered to be occupied and used by the institution or its officers purely and exclusively for the institution's purposes from and after, but not before, the commencement of construction of the improvements and to the extent of such value shall be exempt from taxation;
(3) If the improvements upon completion are not so occupied and used, then no part of the value of the property shall be exempt from taxation during the construction of the improvements;
(4) If upon completion of the improvements a portion thereof is not so used and occupied, such portion shall not be exempt from taxation during construction of the improvements; and
(5) If the improvements upon completion are not occupied and used by such institution or its officers for a period of ten (10) years, purely and exclusively for carrying out thereupon one (1) or more of the purposes for which such institution was created or exists, the institution shall be liable for the full amount of property taxes that would otherwise have been due and payable during the period of construction, plus penalties and interest as provided in this title.
(g) There shall be exempt from property taxation the property or any part thereof of fraternal organizations exempted from the payment of federal income taxes by the United States Internal Revenue Code ( 26 U.S.C. § 501(c) ), to the extent that such property is used not for revenue-producing profit, but directly, physically and exclusively for religious, charitable, scientific and educational activities.
(h) There shall be exempt from property taxation the property, or any part thereof, of nonprofit county fair associations.
(i) There shall be exempt from property taxation the property or any portion thereof containing one (1) residential dwelling located in a community park that is open to entry by the general public, if such dwelling is owned by a nonprofit religious, charitable, educational or scientific organization that does not receive income from the resident thereof, if such resident does not occupy the dwelling in lieu of a salary, and if such resident, by such resident's presence, would discourage or prohibit damage or destruction by vandalism of the organization's property.
(j) There shall be exempt from property taxation any property upon which a caretaker's dwelling is located, if: (1) The dwelling is located upon land owned by a nonprofit member organization chartered by the United States congress; (2) The land immediately surrounding the dwelling is used by such organization for nonprofit religious, charitable, educational or scientific purposes; and (3) The caretaker's presence is required for the physical security of the users of the property as well as to discourage or prohibit damage or destruction of the organization's property by vandalism.
(1) The dwelling is located upon land owned by a nonprofit member organization chartered by the United States congress;
(2) The land immediately surrounding the dwelling is used by such organization for nonprofit religious, charitable, educational or scientific purposes; and
(3) The caretaker's presence is required for the physical security of the users of the property as well as to discourage or prohibit damage or destruction of the organization's property by vandalism.
(k) The general assembly finds that public radio broadcasting serves a valid educational purpose so long as the broadcaster holds an educational broadcast license issued by the federal communications commission; and, therefore, that property, or any part thereof, owned by a public radio station that is an affiliate member of the public broadcasting network, and that is organized as a nonprofit charitable or educational institution, shall be exempt from property taxation to the extent the property is used in a manner consistent with the license.
(l) The general assembly finds that public television broadcasting serves a valid educational purpose so long as the broadcaster holds a noncommercial educational broadcast license issued by the federal communications commission. Therefore, that property, or any part thereof, owned by a public television station that is an affiliate member of the public broadcasting network, and that is organized as a nonprofit charitable or educational institution, shall be exempt from property taxation to the extent the property is used in a manner consistent with the license.
(m) There shall be exempt from property taxation the real and personal property, or any part thereof, that is owned by a religious or charitable institution and that is occupied and used by such institution for a thrift shop; provided, that: (1) The institution is exempt from payment of federal income taxes under Section 501(c)(3) of the Internal Revenue Code ( 26 U.S.C. § 501(c)(3) ); (2) (A) The thrift shop is operated as a training venue for persons in need of occupational rehabilitation; or (B) The thrift shop is operated primarily by volunteers; (3) The inventory of the thrift shop is obtained by donation to the institution that owns and operates the shop; (4) Goods are priced at levels generally ascribed to used property; (5) Goods are given to persons whose financial situations preclude payment; and (6) The net proceeds of the thrift shop are used solely for the charitable purposes of the institution that owns and operates the shop.
(1) The institution is exempt from payment of federal income taxes under Section 501(c)(3) of the Internal Revenue Code ( 26 U.S.C. § 501(c)(3) );
(2) (A) The thrift shop is operated as a training venue for persons in need of occupational rehabilitation; or (B) The thrift shop is operated primarily by volunteers;
(A) The thrift shop is operated as a training venue for persons in need of occupational rehabilitation; or
(B) The thrift shop is operated primarily by volunteers;
(3) The inventory of the thrift shop is obtained by donation to the institution that owns and operates the shop;
(4) Goods are priced at levels generally ascribed to used property;
(5) Goods are given to persons whose financial situations preclude payment; and
(6) The net proceeds of the thrift shop are used solely for the charitable purposes of the institution that owns and operates the shop.
(n) Land not necessary to support exempt structures or site improvements associated with exempt structures, including land used for recreation, retreats or sanctuaries, shall not be eligible for exemption beyond a maximum of one hundred (100) acres per county for each religious, charitable, scientific or nonprofit educational institution qualified for exemption pursuant to this section. For purposes of applying this limit, land owned by an exempt institution shall be aggregated with land owned by related exempt institutions having common ownership or control. Qualifying land in excess of the limit shall be classified as forest land upon application submitted pursuant to § 67-5-1006 , or as open space land upon application submitted pursuant to § 67-5-1007 , and the effective date of the classification shall be the date the property might otherwise have qualified for exemption.
Amended by 2024 Tenn. Acts, ch. 1028,s 1, eff. 5/28/2024.
Amended by 2022 Tenn. Acts, ch. 698, s 2, eff. 3/18/2022.
Amended by 2019 Tenn. Acts, ch. 355, Secs.s 2, s 3, s 4, s 5 eff. 5/10/2019.
Amended by 2018 Tenn. Acts, ch. 957, s 1, eff. 5/15/2018.
Amended by 2018 Tenn. Acts, ch. 527, s 1, eff. 3/7/2018.
Amended by 2017 Tenn. Acts, ch. 465, s 1, eff. 5/25/2017.
Amended by 2017 Tenn. Acts, ch. 155, s 1, eff. 7/1/2017.
Amended by 2013 Tenn. Acts, ch. 209, s 5, eff. 4/23/2013.
Acts 1973, ch. 226, § 5; 1974, ch. 771, §§ 5-7; 1974, ch. 774, §§ 1, 2; 1975, ch. 322, § 1; 1976, ch. 670, §§ 1, 2; 1976, ch. 849, § 1; 1977, ch. 255, §§ 1, 2; 1977, ch. 421, §§ 1-5; 1979, ch. 22, § 1; 1981, ch. 96, § 1; 1981, ch. 218, § 1; 1981, ch. 306, §§ 1, 2; 1982, ch. 713, § 1; 1983, ch. 460, § 1; T.C.A., § 67-513; Acts 1984, ch. 507, § 1; 1984, ch. 651, § 1; 1984, ch. 749, § 1; 1984, ch. 766, § 1; 1984, ch. 809, § 1; 1984, ch. 832, § 4; 1985, ch. 68, § 1; 1994, ch. 541, §§ 2-8; 1997 , ch. 467, § 1; 2000, ch. 628, § 1; 2000, ch. 793, § 1; 2000, ch. 938, § 2; 2000, ch. 993, § 2; 2002, ch. 687, §§ 1, 2; 2003 , ch. 251, § 1; 2004, ch. 531, § 2; 2004, ch. 635, § 1; 2004, ch. 732, §§ 1, 2; 2005, ch. 500, § 12(a); 2006, ch. 740, § 1; 2006, ch. 861, § 1; 2007 , ch. 292, § 2; 2008 , ch. 1104, §§ 2-4; 2010 , ch. 1036, § 2; 2010 , ch. 1074, § 1; 2011 , ch. 415, § 1.
Tenn. Code Ann. § 67-6-706 — TN Code / Title 67 / Chapter 6 / Section 67-6-706
Referendum
Status: in_force

(a) (1) Any ordinance or resolution of a county or of a city or town levying the tax under authority of this part shall not become operative until approved in an election herein provided in the county or the city or town, as the case may be. (2) The county election commission shall hold an election on the question pursuant to § 2-3-204 , providing options to vote "FOR" or "AGAINST" the ordinance or resolution, after the receipt of a certified copy of such ordinance or resolution, and a majority vote of those voting in the election shall determine whether the ordinance or resolution is to be operative. (3) If the majority vote is for the ordinance or resolution, it shall be deemed to be operative on the date that the county election commission makes its official canvass of the election returns; provided, however, that no tax shall be collected under any such ordinance or resolution until the first day of a month occurring at least thirty (30) days after the operative date. (b) (1) If a county legislative body adopts a resolution to levy the tax at the same rate that is operative in a city or town in the county, the election under this section to determine whether the county tax is to be operative shall be open only to the voters residing outside of such city or town. If the county tax is at a higher rate than the rate of the city or town tax, the election shall also be open to the voters of the city or town. (2) (A) Except as provided in subdivision (b)(2)(B), should any county or city or town hold an election under this section, and the ordinance or resolution is rejected, no other election thereon shall be held by such county, city or town for a period of six (6) months from the date of the holding of such prior election. (B) In counties having a population of not more than seven hundred fifty thousand (750,000) nor less than seven hundred thousand (700,000) and not more than two hundred seventy-eight thousand (278,000) and not less than two hundred fifty thousand (250,000), according to the federal census of 1970 or any subsequent federal census, in case of rejection, the limitation period on subsequent elections shall be one (1) year from the date of the holding of such prior election. Amended by 2021 Tenn. Acts, ch. 285, s 2, eff. 4/30/2021. Amended by 2019 Tenn. Acts, ch. 157, s 1, eff. 4/23/2019. Acts 1963, ch. 329, § 5; 1967, ch. 113, § 1; 1968, ch. 488, § 3; 1971, ch. 83, § 1; 1972, ch. 455, § 1; 1982, ch. 591, § 1; T.C.A., § 67-3053; Acts 1985, ch. 234, § 1; 1998, ch. 618, § 3; 2003 , ch. 357, § 67; 2004, ch. 959, §§ 26, 68; 2005, ch. 311, §§ 1, 2; 2007 , ch. 602, §§ 51, 166; 2009 , ch. 530, § 35; 2011 , ch. 72, § 1; 2013 , ch. 480, § 1; 2015 , ch. 273, § 3.
(a) (1) Any ordinance or resolution of a county or of a city or town levying the tax under authority of this part shall not become operative until approved in an election herein provided in the county or the city or town, as the case may be. (2) The county election commission shall hold an election on the question pursuant to § 2-3-204 , providing options to vote "FOR" or "AGAINST" the ordinance or resolution, after the receipt of a certified copy of such ordinance or resolution, and a majority vote of those voting in the election shall determine whether the ordinance or resolution is to be operative. (3) If the majority vote is for the ordinance or resolution, it shall be deemed to be operative on the date that the county election commission makes its official canvass of the election returns; provided, however, that no tax shall be collected under any such ordinance or resolution until the first day of a month occurring at least thirty (30) days after the operative date.
(1) Any ordinance or resolution of a county or of a city or town levying the tax under authority of this part shall not become operative until approved in an election herein provided in the county or the city or town, as the case may be.
(2) The county election commission shall hold an election on the question pursuant to § 2-3-204 , providing options to vote "FOR" or "AGAINST" the ordinance or resolution, after the receipt of a certified copy of such ordinance or resolution, and a majority vote of those voting in the election shall determine whether the ordinance or resolution is to be operative.
(3) If the majority vote is for the ordinance or resolution, it shall be deemed to be operative on the date that the county election commission makes its official canvass of the election returns; provided, however, that no tax shall be collected under any such ordinance or resolution until the first day of a month occurring at least thirty (30) days after the operative date.
(b) (1) If a county legislative body adopts a resolution to levy the tax at the same rate that is operative in a city or town in the county, the election under this section to determine whether the county tax is to be operative shall be open only to the voters residing outside of such city or town. If the county tax is at a higher rate than the rate of the city or town tax, the election shall also be open to the voters of the city or town. (2) (A) Except as provided in subdivision (b)(2)(B), should any county or city or town hold an election under this section, and the ordinance or resolution is rejected, no other election thereon shall be held by such county, city or town for a period of six (6) months from the date of the holding of such prior election. (B) In counties having a population of not more than seven hundred fifty thousand (750,000) nor less than seven hundred thousand (700,000) and not more than two hundred seventy-eight thousand (278,000) and not less than two hundred fifty thousand (250,000), according to the federal census of 1970 or any subsequent federal census, in case of rejection, the limitation period on subsequent elections shall be one (1) year from the date of the holding of such prior election.
(1) If a county legislative body adopts a resolution to levy the tax at the same rate that is operative in a city or town in the county, the election under this section to determine whether the county tax is to be operative shall be open only to the voters residing outside of such city or town. If the county tax is at a higher rate than the rate of the city or town tax, the election shall also be open to the voters of the city or town.
(2) (A) Except as provided in subdivision (b)(2)(B), should any county or city or town hold an election under this section, and the ordinance or resolution is rejected, no other election thereon shall be held by such county, city or town for a period of six (6) months from the date of the holding of such prior election. (B) In counties having a population of not more than seven hundred fifty thousand (750,000) nor less than seven hundred thousand (700,000) and not more than two hundred seventy-eight thousand (278,000) and not less than two hundred fifty thousand (250,000), according to the federal census of 1970 or any subsequent federal census, in case of rejection, the limitation period on subsequent elections shall be one (1) year from the date of the holding of such prior election.
(A) Except as provided in subdivision (b)(2)(B), should any county or city or town hold an election under this section, and the ordinance or resolution is rejected, no other election thereon shall be held by such county, city or town for a period of six (6) months from the date of the holding of such prior election.
(B) In counties having a population of not more than seven hundred fifty thousand (750,000) nor less than seven hundred thousand (700,000) and not more than two hundred seventy-eight thousand (278,000) and not less than two hundred fifty thousand (250,000), according to the federal census of 1970 or any subsequent federal census, in case of rejection, the limitation period on subsequent elections shall be one (1) year from the date of the holding of such prior election.
Amended by 2021 Tenn. Acts, ch. 285, s 2, eff. 4/30/2021.
Amended by 2019 Tenn. Acts, ch. 157, s 1, eff. 4/23/2019.
Acts 1963, ch. 329, § 5; 1967, ch. 113, § 1; 1968, ch. 488, § 3; 1971, ch. 83, § 1; 1972, ch. 455, § 1; 1982, ch. 591, § 1; T.C.A., § 67-3053; Acts 1985, ch. 234, § 1; 1998, ch. 618, § 3; 2003 , ch. 357, § 67; 2004, ch. 959, §§ 26, 68; 2005, ch. 311, §§ 1, 2; 2007 , ch. 602, §§ 51, 166; 2009 , ch. 530, § 35; 2011 , ch. 72, § 1; 2013 , ch. 480, § 1; 2015 , ch. 273, § 3.
Tenn. Code Ann. § 67-8-208 — TN Code / Title 67 / Chapter 8 / Section 67-8-208
Adjustment upon change in federal tax payment
Status: in_force

(a) If the amount of federal estate tax is, upon the final determination of the federal estate tax, increased or decreased as affecting an estate the transfer of any part whereof is taxable hereunder subsequent to the payment of the Tennessee estate tax, the Tennessee estate tax imposed shall be changed accordingly. Any additional estate tax shall be payable at the same time or times at which the additional federal estate tax is payable. (b) In the event that there shall be a decrease in the federal estate tax, the executor shall file with the commissioner of revenue an affidavit in such form as is prescribed by the commissioner, setting forth the amount of: (1) Federal estate tax as originally computed; (2) Federal estate tax as revised and decreased; (3) Tennessee estate tax theretofore paid and date of payment; and (4) Tennessee estate tax properly payable in view of such revision and decrease of federal estate tax. (c) With the affidavit, there shall also be filed: (1) A certificate or other evidence from the internal revenue service showing the amount of federal estate tax as so revised and decreased; (2) A certified copy of the affidavit filed with the commissioner as provided in § 67-8-206 ; (3) A duplicate receipt by the commissioner for the Tennessee estate tax theretofore paid, showing date of payment; and (4) Such other evidence as the commissioner may require in order to enable the commissioner to determine the Tennessee estate tax, properly payable, and the amount, if any, of any refund due. (d) The commissioner shall thereupon cause to be paid to the executor the amount of refund found to be due, together with interest thereon as provided in § 67-1-801(b) . Acts 1929 (Ex. Sess.), ch. 23, § 5; Code 1932, § 1301; impl. am. Acts 1959, ch. 9, § 14; T.C.A. (orig. ed.), § 30-1706; Acts 2010, ch. 1134, § 48.
(a) If the amount of federal estate tax is, upon the final determination of the federal estate tax, increased or decreased as affecting an estate the transfer of any part whereof is taxable hereunder subsequent to the payment of the Tennessee estate tax, the Tennessee estate tax imposed shall be changed accordingly. Any additional estate tax shall be payable at the same time or times at which the additional federal estate tax is payable.
(b) In the event that there shall be a decrease in the federal estate tax, the executor shall file with the commissioner of revenue an affidavit in such form as is prescribed by the commissioner, setting forth the amount of: (1) Federal estate tax as originally computed; (2) Federal estate tax as revised and decreased; (3) Tennessee estate tax theretofore paid and date of payment; and (4) Tennessee estate tax properly payable in view of such revision and decrease of federal estate tax.
(1) Federal estate tax as originally computed;
(2) Federal estate tax as revised and decreased;
(3) Tennessee estate tax theretofore paid and date of payment; and
(4) Tennessee estate tax properly payable in view of such revision and decrease of federal estate tax.
(c) With the affidavit, there shall also be filed: (1) A certificate or other evidence from the internal revenue service showing the amount of federal estate tax as so revised and decreased; (2) A certified copy of the affidavit filed with the commissioner as provided in § 67-8-206 ; (3) A duplicate receipt by the commissioner for the Tennessee estate tax theretofore paid, showing date of payment; and (4) Such other evidence as the commissioner may require in order to enable the commissioner to determine the Tennessee estate tax, properly payable, and the amount, if any, of any refund due.
(1) A certificate or other evidence from the internal revenue service showing the amount of federal estate tax as so revised and decreased;
(2) A certified copy of the affidavit filed with the commissioner as provided in § 67-8-206 ;
(3) A duplicate receipt by the commissioner for the Tennessee estate tax theretofore paid, showing date of payment; and
(4) Such other evidence as the commissioner may require in order to enable the commissioner to determine the Tennessee estate tax, properly payable, and the amount, if any, of any refund due.
(d) The commissioner shall thereupon cause to be paid to the executor the amount of refund found to be due, together with interest thereon as provided in § 67-1-801(b) .
Acts 1929 (Ex. Sess.), ch. 23, § 5; Code 1932, § 1301; impl. am. Acts 1959, ch. 9, § 14; T.C.A. (orig. ed.), § 30-1706; Acts 2010, ch. 1134, § 48.
Tenn. Code Ann. § 67-4-3002 — TN Code / Title 67 / Chapter 4 / Section 67-4-3002
Part definitions
Status: in_force

As used in this part, unless the context otherwise requires: (1) "Business" includes any activity engaged in by any person, or caused to be engaged in by the person, with the object of gain, benefit, or advantage, either direct or indirect. "Business" does not include occasional and isolated sales or transactions by a person not routinely engaged in business; (2) "Cost," as applied to any public use facility, has the same meaning as set forth in § 7-88-103 ; (3) "Gross sales" means the sum total of all sales under this part as defined in this section, without any deduction whatsoever of any kind or character, except as provided in this part; (4) "Municipality" means any incorporated city or county located in this state; (5) "Person" includes any individual, firm, partnership, joint venture, association, corporation, estate, trust, business trust, receiver, syndicate, or other group or combination acting as a unit; (6) "Public authority" means any agency, authority or instrumentality described by § 7-88-103 ; (7) "Qualified public use facility" or "public use facility" means: (A) A building, complex, center, or facility described by § 7-88-103 ; (B) A full-service hotel with not less than two hundred fifty (250) rooms and related retail, commercial, and parking space that is located in a tourism development zone; (C) A mixed-use development, including a full-service hotel with not less than one hundred fifty (150) rooms and including any retail, office, apartment, condominium, or other commercial or residential uses, that is located in a tourism development zone; or (D) A mixed-use development initially including a sports facility containing ten (10) or more sports fields and including any retail, office, hotel, apartment, condominium, and other commercial or residential uses that is located in a tourism development zone and requiring a capital investment of five hundred million dollars ($500,000,000) or more; (8) (A) "Sale" means any transfer of title or possession, or both, exchange, barter, lease or rental, conditional or otherwise, in any manner or by any means whatsoever, of tangible personal property for a consideration, and includes the fabrication of tangible personal property for consumers who furnish, either directly or indirectly, the materials used in fabrication work, and the furnishing, repairing or servicing for a consideration of any tangible personal property consumed on the premises of the person furnishing, preparing or serving the tangible personal property; (B) "Sale" includes a transaction whereby the possession of property is transferred but the seller retains title as security for the payment of the price; (C) "Sale" includes the furnishing of any of the things or services taxable under this part; and (D) "Sale" includes sales of tickets, fees or other charges made for admission to amusement or theme parks or other tourist attractions; (9) (A) "Sales price" means the total amount for which tangible personal property or services rendered is sold, including any services that are a part of the sale, valued in money, whether paid in money or otherwise, and includes any amount for which credit is given to the purchaser by the seller, without any deduction from the price on account of the cost of the property sold, the cost of materials used, labor or service cost, losses, or any other expense whatsoever; provided, that "sales price" does not include any additional consideration given by the purchaser for the privilege of making deferred payments, regardless of whether the additional consideration is known as interest, time price differential on conditional sales contracts, carrying charges or any other name by which it is known, and does not include any additional consideration received by a motor vehicle dealer from a lender for the sale or assignment to the lender of a chattel lease or conditional sales contract; provided, further, that the "sales price" shall be reduced by the deductions set forth in § 67-4-711 ; (B) "Sales price" for services rendered by a person for an affiliated business entity does not include any amount that is accounted for as a reasonable allocation of cost incurred in providing the service; and (C) "Sales price" does not include any advertising cost paid by a seller to an auctioneer for the purpose of advertising an auction, when no portion of the payment is retained as profit by the auctioneer, and when the payment has been placed in an escrow or a trust account by the auctioneers on behalf of the seller; (10) (A) "Services" means and includes every activity, function or work engaged in by a person for profit or monetary gain, except as otherwise provided in this part. Services for profit or monetary gain does not include services rendered by a person for an affiliated business entity; provided, that the services are accounted for as allocations of cost incurred in providing the service without any markup whatsoever; and (B) "Services" does not include sales of tangible personal property; (11) (A) "Tangible personal property" means and includes personal property that may be seen, weighed, measured, felt or touched, or is in any other manner perceptible to the senses; and (B) "Tangible personal property" does not include stocks, bonds, notes, insurance or other obligations or securities, nor does it include any materials, substances or other items of any nature inserted into or affixed to the human body by duly licensed physicians or dentists or otherwise dispensed by them in the treatment of patients; and (12) "Tourism development zone" means an area described by § 7-88-103 . Amended by 2024 Tenn. Acts, ch. 912,s 1, eff. 5/3/2024. Amended by 2020 Tenn. Acts, ch. 752, s 1, eff. 6/22/2020. Acts 2007, 500, § 1.
As used in this part, unless the context otherwise requires:
(1) "Business" includes any activity engaged in by any person, or caused to be engaged in by the person, with the object of gain, benefit, or advantage, either direct or indirect. "Business" does not include occasional and isolated sales or transactions by a person not routinely engaged in business;
(2) "Cost," as applied to any public use facility, has the same meaning as set forth in § 7-88-103 ;
(3) "Gross sales" means the sum total of all sales under this part as defined in this section, without any deduction whatsoever of any kind or character, except as provided in this part;
(4) "Municipality" means any incorporated city or county located in this state;
(5) "Person" includes any individual, firm, partnership, joint venture, association, corporation, estate, trust, business trust, receiver, syndicate, or other group or combination acting as a unit;
(6) "Public authority" means any agency, authority or instrumentality described by § 7-88-103 ;
(7) "Qualified public use facility" or "public use facility" means: (A) A building, complex, center, or facility described by § 7-88-103 ; (B) A full-service hotel with not less than two hundred fifty (250) rooms and related retail, commercial, and parking space that is located in a tourism development zone; (C) A mixed-use development, including a full-service hotel with not less than one hundred fifty (150) rooms and including any retail, office, apartment, condominium, or other commercial or residential uses, that is located in a tourism development zone; or (D) A mixed-use development initially including a sports facility containing ten (10) or more sports fields and including any retail, office, hotel, apartment, condominium, and other commercial or residential uses that is located in a tourism development zone and requiring a capital investment of five hundred million dollars ($500,000,000) or more;
(A) A building, complex, center, or facility described by § 7-88-103 ;
(B) A full-service hotel with not less than two hundred fifty (250) rooms and related retail, commercial, and parking space that is located in a tourism development zone;
(C) A mixed-use development, including a full-service hotel with not less than one hundred fifty (150) rooms and including any retail, office, apartment, condominium, or other commercial or residential uses, that is located in a tourism development zone; or
(D) A mixed-use development initially including a sports facility containing ten (10) or more sports fields and including any retail, office, hotel, apartment, condominium, and other commercial or residential uses that is located in a tourism development zone and requiring a capital investment of five hundred million dollars ($500,000,000) or more;
(8) (A) "Sale" means any transfer of title or possession, or both, exchange, barter, lease or rental, conditional or otherwise, in any manner or by any means whatsoever, of tangible personal property for a consideration, and includes the fabrication of tangible personal property for consumers who furnish, either directly or indirectly, the materials used in fabrication work, and the furnishing, repairing or servicing for a consideration of any tangible personal property consumed on the premises of the person furnishing, preparing or serving the tangible personal property; (B) "Sale" includes a transaction whereby the possession of property is transferred but the seller retains title as security for the payment of the price; (C) "Sale" includes the furnishing of any of the things or services taxable under this part; and (D) "Sale" includes sales of tickets, fees or other charges made for admission to amusement or theme parks or other tourist attractions;
(A) "Sale" means any transfer of title or possession, or both, exchange, barter, lease or rental, conditional or otherwise, in any manner or by any means whatsoever, of tangible personal property for a consideration, and includes the fabrication of tangible personal property for consumers who furnish, either directly or indirectly, the materials used in fabrication work, and the furnishing, repairing or servicing for a consideration of any tangible personal property consumed on the premises of the person furnishing, preparing or serving the tangible personal property;
(B) "Sale" includes a transaction whereby the possession of property is transferred but the seller retains title as security for the payment of the price;
(C) "Sale" includes the furnishing of any of the things or services taxable under this part; and
(D) "Sale" includes sales of tickets, fees or other charges made for admission to amusement or theme parks or other tourist attractions;
(9) (A) "Sales price" means the total amount for which tangible personal property or services rendered is sold, including any services that are a part of the sale, valued in money, whether paid in money or otherwise, and includes any amount for which credit is given to the purchaser by the seller, without any deduction from the price on account of the cost of the property sold, the cost of materials used, labor or service cost, losses, or any other expense whatsoever; provided, that "sales price" does not include any additional consideration given by the purchaser for the privilege of making deferred payments, regardless of whether the additional consideration is known as interest, time price differential on conditional sales contracts, carrying charges or any other name by which it is known, and does not include any additional consideration received by a motor vehicle dealer from a lender for the sale or assignment to the lender of a chattel lease or conditional sales contract; provided, further, that the "sales price" shall be reduced by the deductions set forth in § 67-4-711 ; (B) "Sales price" for services rendered by a person for an affiliated business entity does not include any amount that is accounted for as a reasonable allocation of cost incurred in providing the service; and (C) "Sales price" does not include any advertising cost paid by a seller to an auctioneer for the purpose of advertising an auction, when no portion of the payment is retained as profit by the auctioneer, and when the payment has been placed in an escrow or a trust account by the auctioneers on behalf of the seller;
(A) "Sales price" means the total amount for which tangible personal property or services rendered is sold, including any services that are a part of the sale, valued in money, whether paid in money or otherwise, and includes any amount for which credit is given to the purchaser by the seller, without any deduction from the price on account of the cost of the property sold, the cost of materials used, labor or service cost, losses, or any other expense whatsoever; provided, that "sales price" does not include any additional consideration given by the purchaser for the privilege of making deferred payments, regardless of whether the additional consideration is known as interest, time price differential on conditional sales contracts, carrying charges or any other name by which it is known, and does not include any additional consideration received by a motor vehicle dealer from a lender for the sale or assignment to the lender of a chattel lease or conditional sales contract; provided, further, that the "sales price" shall be reduced by the deductions set forth in § 67-4-711 ;
(B) "Sales price" for services rendered by a person for an affiliated business entity does not include any amount that is accounted for as a reasonable allocation of cost incurred in providing the service; and
(C) "Sales price" does not include any advertising cost paid by a seller to an auctioneer for the purpose of advertising an auction, when no portion of the payment is retained as profit by the auctioneer, and when the payment has been placed in an escrow or a trust account by the auctioneers on behalf of the seller;
(10) (A) "Services" means and includes every activity, function or work engaged in by a person for profit or monetary gain, except as otherwise provided in this part. Services for profit or monetary gain does not include services rendered by a person for an affiliated business entity; provided, that the services are accounted for as allocations of cost incurred in providing the service without any markup whatsoever; and (B) "Services" does not include sales of tangible personal property;
(A) "Services" means and includes every activity, function or work engaged in by a person for profit or monetary gain, except as otherwise provided in this part. Services for profit or monetary gain does not include services rendered by a person for an affiliated business entity; provided, that the services are accounted for as allocations of cost incurred in providing the service without any markup whatsoever; and
(B) "Services" does not include sales of tangible personal property;
(11) (A) "Tangible personal property" means and includes personal property that may be seen, weighed, measured, felt or touched, or is in any other manner perceptible to the senses; and (B) "Tangible personal property" does not include stocks, bonds, notes, insurance or other obligations or securities, nor does it include any materials, substances or other items of any nature inserted into or affixed to the human body by duly licensed physicians or dentists or otherwise dispensed by them in the treatment of patients; and
(A) "Tangible personal property" means and includes personal property that may be seen, weighed, measured, felt or touched, or is in any other manner perceptible to the senses; and
(B) "Tangible personal property" does not include stocks, bonds, notes, insurance or other obligations or securities, nor does it include any materials, substances or other items of any nature inserted into or affixed to the human body by duly licensed physicians or dentists or otherwise dispensed by them in the treatment of patients; and
(12) "Tourism development zone" means an area described by § 7-88-103 .
Amended by 2024 Tenn. Acts, ch. 912,s 1, eff. 5/3/2024.
Amended by 2020 Tenn. Acts, ch. 752, s 1, eff. 6/22/2020.
Acts 2007, 500, § 1.
Tenn. Code Ann. § 67-2-124 — TN Code / Title 67 / Chapter 2 / Section 67-2-124
Effect of reduction to rate of tax - Annual reduction of tax - Elimination of tax
Status: in_force

(a) The reduction to the rate of tax made by chapter 1064 of the Public Acts of 2016 shall not be construed to absolve any taxpayer of liability for any tax duly levied by this chapter, during a tax year that began prior to January 1, 2016. (b) It is the legislative intent that the tax be reduced by one percent (1%) annually through enactments of general bills beginning with the first annual session of the 110th general assembly. (c) The income tax levied by this chapter is eliminated for tax years that begin on or after January 1, 2021; provided, however, that this subsection (c) shall not be construed to absolve any taxpayer of liability for any tax duly levied by this section, during a tax year that began prior to January 1, 2021. Amended by 2017 Tenn. Acts, ch. 181,s 15, eff. 4/26/2017. Added by 2016 Tenn. Acts, ch. 1064,s 3, eff. 5/20/2016.
(a) The reduction to the rate of tax made by chapter 1064 of the Public Acts of 2016 shall not be construed to absolve any taxpayer of liability for any tax duly levied by this chapter, during a tax year that began prior to January 1, 2016.
(b) It is the legislative intent that the tax be reduced by one percent (1%) annually through enactments of general bills beginning with the first annual session of the 110th general assembly.
(c) The income tax levied by this chapter is eliminated for tax years that begin on or after January 1, 2021; provided, however, that this subsection (c) shall not be construed to absolve any taxpayer of liability for any tax duly levied by this section, during a tax year that began prior to January 1, 2021.
Amended by 2017 Tenn. Acts, ch. 181,s 15, eff. 4/26/2017.
Added by 2016 Tenn. Acts, ch. 1064,s 3, eff. 5/20/2016.