Tenn. Code Ann. § 67-5-2001-d-1 — TN Code / Title 67 / Chapter 5 / Section 67-5-2001-d-1
2024 Tennessee Code Title 67 - TAXES AND LICENSES (§§ 67-1-101 — 67-10-107) Chapter 5 - PROPERTY TAXES (§§ 67-5-101 — 67-5-2803) Part 20 - DELINQUENT TAXES (§§ 67-5-2001 — 67-5-2013) Section 67-5-2001 - [Effective 1/1/2026] Deputies collect delinquent taxes
Status: in_force

(a) (1) After taxes become delinquent, the county trustee shall have power to appoint such deputies as may be necessary for the collection of the taxes, and in such cases the county trustee shall furnish the deputy with a list of the delinquent taxpayers, with the description of the property assessed against each and the amount of taxes due from each. (2) In cases involving delinquent taxes assessed against real property, such list shall identify the current owner of such property and the owner's last known mailing address, if such owner can easily be identified and, in those cases, shall not identify any former owners. (3) Nothing in this subsection (a) shall be construed as in any manner affecting the liability of the current owner or any former owner. (4) The county trustee shall receive no compensation for making out the delinquent lists for the officers as provided. (b) The official bond of the county trustee shall be liable and be held to cover the official acts of such deputy trustees, constables and deputy sheriffs, to whom delinquent tax lists may be furnished by the county trustee, but the county trustee shall have the power and authority, before turning over to such officers such delinquent lists, to require of them bond in such sum as the county trustee may deem appropriate, conditioned upon the faithful performance of their duties and for full and complete settlement of all sums collected by them upon such delinquent tax lists, which bonds shall be payable to the county trustee and upon which the county trustee shall have a right of action for any default of such officers. (c) All lists shall be returned by such officer on or before January 1. (d) (1) This subsection (d) applies to a county trustee, municipal tax collector, or taxing entity qualifying to accept partial payments of delinquent property taxes. (2) Notwithstanding another law or private act to the contrary, a county trustee, municipal tax collector, or taxing entity to whom this subsection (d) applies may accept partial payments of delinquent property taxes, including, but not limited to, payment by electronic transfers, bank customer preauthorized payments, wire transfers, or ACH credits. If the entire amount of delinquent taxes due is not paid prior to the date the trustee, tax collector, or taxing entity delivers the delinquent tax lists to the delinquent tax attorney, then the entire property is subject to the tax lien and enforcement by a tax sale or other legally authorized procedures. (3) At least thirty (30) days before the county trustee, municipal tax collector, or taxing entity seeks to begin accepting partial payments of delinquent property taxes, the county trustee, municipal tax collector, or taxing entity shall file a plan with the comptroller of the treasury. The comptroller must acknowledge the receipt of the plan prior to its implementation. The plan must contain the following: (A) A description of the accounting system technology or manual processes to be used to record partial payments of delinquent property taxes; (B) A statement indicating that funds received as partial payments on delinquent property taxes reduce the amount of delinquent property tax, interest, statutory fees, and court costs, by relative amounts on the pro-rata basis as described in subdivision (d)(4); (C) A statement indicating whether such a process of collecting delinquent property taxes will be implemented within the existing operating resources of the office or an indication of prior approval by the county legislative body if accounting system upgrades or additional operating resources are needed; and (D) Documentation of the internal controls that ensure all delinquent property tax payments are being recorded and accounted for as required by law. (4) For purposes of this section, partial payments of delinquent property taxes must be applied on a pro-rata basis to the delinquent property tax, interest, statutory fees, and court costs due, as follows: (A) The delinquent property taxes due prior to the partial payment must be reduced by the amount of the partial payment multiplied by the quotient of delinquent property taxes due prior to the partial payment and the sum of the delinquent property tax, interest, statutory fees, and court costs due prior to the partial payment; (B) The application of payment of interest on a partial payment must be calculated by the amount of the partial payment multiplied by the quotient of the interest due prior to the partial payment and the sum of the delinquent property tax, interest, statutory fees, and court costs due prior to the partial payment; (C) The application of payment of statutory fees on a partial payment must be calculated by the amount of the partial payment multiplied by the quotient of the fees due prior to the partial payment and the sum of the delinquent property tax, interest, statutory fees, and court costs due prior to the partial payment; (D) The application of payment of court costs on a partial payment must be calculated by the amount of the partial payment multiplied by the quotient of the court costs due prior to the partial payment and the sum of the delinquent property tax, interest, statutory fees, and court costs due prior to the partial payment; and (E) A rounding difference between the total of the individual applications of amounts due and the partial payment amount may be applied to any of the amounts due to make the total of the individual applications equal to the partial payment amount. (5) The comptroller, in consultation with the Tennessee county trustee's association, shall develop guidelines for the implementation of plans for the acceptance of partial payments of delinquent property taxes. (6) The delinquent date for property taxes and interest applicable to delinquent property taxes is not affected by application of a partial payment system established in the county. (7) After a partial payment is applied to delinquent property taxes and interest in accordance with subdivision (d)(4), interest applies only to the amount of delinquent property taxes remaining due. (8) If a partial payment of delinquent property taxes is accepted, then the partial payment does not release the tax lien on the property upon which the taxes were assessed. (9) This subsection (d) does not authorize a clerk of a court in which a proceeding is pending, to accept a partial payment of delinquent taxes, interest, or court costs, except pursuant to part 28 of this chapter, § 67-5-2003(g)(5) , or a payment distribution plan approved in a bankruptcy proceeding. As used in this subdivision (d)(9), "proceeding" has the same meaning as defined in § 67-5-2502(c)(1)(D) . Amended by 2024 Tenn. Acts, ch. 913,s 1, eff. 1/1/2026. Acts 1907, ch. 602, § 49; Shan., §§ 880, 881, 883, 884; Acts 1923, ch. 77, § 4; Shan. Supp., § 913b7; mod. Code 1932, §§ 1565, 1567, 1568, 1581; Acts 1939, ch. 198, §§ 1, 2; C. Supp. 1950, §§ 1567, 1568; Acts 1978, ch. 673, § 1; T.C.A. (orig. ed.), §§ 67-1302, 67-1303, 67-1312; Acts 1984, ch. 675, § 3; 2011 , ch. 160, § 1. This section is set out more than once due to postponed, multiple, or conflicting amendments.
(a) (1) After taxes become delinquent, the county trustee shall have power to appoint such deputies as may be necessary for the collection of the taxes, and in such cases the county trustee shall furnish the deputy with a list of the delinquent taxpayers, with the description of the property assessed against each and the amount of taxes due from each. (2) In cases involving delinquent taxes assessed against real property, such list shall identify the current owner of such property and the owner's last known mailing address, if such owner can easily be identified and, in those cases, shall not identify any former owners. (3) Nothing in this subsection (a) shall be construed as in any manner affecting the liability of the current owner or any former owner. (4) The county trustee shall receive no compensation for making out the delinquent lists for the officers as provided.
(1) After taxes become delinquent, the county trustee shall have power to appoint such deputies as may be necessary for the collection of the taxes, and in such cases the county trustee shall furnish the deputy with a list of the delinquent taxpayers, with the description of the property assessed against each and the amount of taxes due from each.
(2) In cases involving delinquent taxes assessed against real property, such list shall identify the current owner of such property and the owner's last known mailing address, if such owner can easily be identified and, in those cases, shall not identify any former owners.
(3) Nothing in this subsection (a) shall be construed as in any manner affecting the liability of the current owner or any former owner.
(4) The county trustee shall receive no compensation for making out the delinquent lists for the officers as provided.
(b) The official bond of the county trustee shall be liable and be held to cover the official acts of such deputy trustees, constables and deputy sheriffs, to whom delinquent tax lists may be furnished by the county trustee, but the county trustee shall have the power and authority, before turning over to such officers such delinquent lists, to require of them bond in such sum as the county trustee may deem appropriate, conditioned upon the faithful performance of their duties and for full and complete settlement of all sums collected by them upon such delinquent tax lists, which bonds shall be payable to the county trustee and upon which the county trustee shall have a right of action for any default of such officers.
(c) All lists shall be returned by such officer on or before January 1.
(d) (1) This subsection (d) applies to a county trustee, municipal tax collector, or taxing entity qualifying to accept partial payments of delinquent property taxes. (2) Notwithstanding another law or private act to the contrary, a county trustee, municipal tax collector, or taxing entity to whom this subsection (d) applies may accept partial payments of delinquent property taxes, including, but not limited to, payment by electronic transfers, bank customer preauthorized payments, wire transfers, or ACH credits. If the entire amount of delinquent taxes due is not paid prior to the date the trustee, tax collector, or taxing entity delivers the delinquent tax lists to the delinquent tax attorney, then the entire property is subject to the tax lien and enforcement by a tax sale or other legally authorized procedures. (3) At least thirty (30) days before the county trustee, municipal tax collector, or taxing entity seeks to begin accepting partial payments of delinquent property taxes, the county trustee, municipal tax collector, or taxing entity shall file a plan with the comptroller of the treasury. The comptroller must acknowledge the receipt of the plan prior to its implementation. The plan must contain the following: (A) A description of the accounting system technology or manual processes to be used to record partial payments of delinquent property taxes; (B) A statement indicating that funds received as partial payments on delinquent property taxes reduce the amount of delinquent property tax, interest, statutory fees, and court costs, by relative amounts on the pro-rata basis as described in subdivision (d)(4); (C) A statement indicating whether such a process of collecting delinquent property taxes will be implemented within the existing operating resources of the office or an indication of prior approval by the county legislative body if accounting system upgrades or additional operating resources are needed; and (D) Documentation of the internal controls that ensure all delinquent property tax payments are being recorded and accounted for as required by law. (4) For purposes of this section, partial payments of delinquent property taxes must be applied on a pro-rata basis to the delinquent property tax, interest, statutory fees, and court costs due, as follows: (A) The delinquent property taxes due prior to the partial payment must be reduced by the amount of the partial payment multiplied by the quotient of delinquent property taxes due prior to the partial payment and the sum of the delinquent property tax, interest, statutory fees, and court costs due prior to the partial payment; (B) The application of payment of interest on a partial payment must be calculated by the amount of the partial payment multiplied by the quotient of the interest due prior to the partial payment and the sum of the delinquent property tax, interest, statutory fees, and court costs due prior to the partial payment; (C) The application of payment of statutory fees on a partial payment must be calculated by the amount of the partial payment multiplied by the quotient of the fees due prior to the partial payment and the sum of the delinquent property tax, interest, statutory fees, and court costs due prior to the partial payment; (D) The application of payment of court costs on a partial payment must be calculated by the amount of the partial payment multiplied by the quotient of the court costs due prior to the partial payment and the sum of the delinquent property tax, interest, statutory fees, and court costs due prior to the partial payment; and (E) A rounding difference between the total of the individual applications of amounts due and the partial payment amount may be applied to any of the amounts due to make the total of the individual applications equal to the partial payment amount. (5) The comptroller, in consultation with the Tennessee county trustee's association, shall develop guidelines for the implementation of plans for the acceptance of partial payments of delinquent property taxes. (6) The delinquent date for property taxes and interest applicable to delinquent property taxes is not affected by application of a partial payment system established in the county. (7) After a partial payment is applied to delinquent property taxes and interest in accordance with subdivision (d)(4), interest applies only to the amount of delinquent property taxes remaining due. (8) If a partial payment of delinquent property taxes is accepted, then the partial payment does not release the tax lien on the property upon which the taxes were assessed. (9) This subsection (d) does not authorize a clerk of a court in which a proceeding is pending, to accept a partial payment of delinquent taxes, interest, or court costs, except pursuant to part 28 of this chapter, § 67-5-2003(g)(5) , or a payment distribution plan approved in a bankruptcy proceeding. As used in this subdivision (d)(9), "proceeding" has the same meaning as defined in § 67-5-2502(c)(1)(D) .
(1) This subsection (d) applies to a county trustee, municipal tax collector, or taxing entity qualifying to accept partial payments of delinquent property taxes.
(2) Notwithstanding another law or private act to the contrary, a county trustee, municipal tax collector, or taxing entity to whom this subsection (d) applies may accept partial payments of delinquent property taxes, including, but not limited to, payment by electronic transfers, bank customer preauthorized payments, wire transfers, or ACH credits. If the entire amount of delinquent taxes due is not paid prior to the date the trustee, tax collector, or taxing entity delivers the delinquent tax lists to the delinquent tax attorney, then the entire property is subject to the tax lien and enforcement by a tax sale or other legally authorized procedures.
(3) At least thirty (30) days before the county trustee, municipal tax collector, or taxing entity seeks to begin accepting partial payments of delinquent property taxes, the county trustee, municipal tax collector, or taxing entity shall file a plan with the comptroller of the treasury. The comptroller must acknowledge the receipt of the plan prior to its implementation. The plan must contain the following: (A) A description of the accounting system technology or manual processes to be used to record partial payments of delinquent property taxes; (B) A statement indicating that funds received as partial payments on delinquent property taxes reduce the amount of delinquent property tax, interest, statutory fees, and court costs, by relative amounts on the pro-rata basis as described in subdivision (d)(4); (C) A statement indicating whether such a process of collecting delinquent property taxes will be implemented within the existing operating resources of the office or an indication of prior approval by the county legislative body if accounting system upgrades or additional operating resources are needed; and (D) Documentation of the internal controls that ensure all delinquent property tax payments are being recorded and accounted for as required by law.
(A) A description of the accounting system technology or manual processes to be used to record partial payments of delinquent property taxes;
(B) A statement indicating that funds received as partial payments on delinquent property taxes reduce the amount of delinquent property tax, interest, statutory fees, and court costs, by relative amounts on the pro-rata basis as described in subdivision (d)(4);
(C) A statement indicating whether such a process of collecting delinquent property taxes will be implemented within the existing operating resources of the office or an indication of prior approval by the county legislative body if accounting system upgrades or additional operating resources are needed; and
(D) Documentation of the internal controls that ensure all delinquent property tax payments are being recorded and accounted for as required by law.
(4) For purposes of this section, partial payments of delinquent property taxes must be applied on a pro-rata basis to the delinquent property tax, interest, statutory fees, and court costs due, as follows: (A) The delinquent property taxes due prior to the partial payment must be reduced by the amount of the partial payment multiplied by the quotient of delinquent property taxes due prior to the partial payment and the sum of the delinquent property tax, interest, statutory fees, and court costs due prior to the partial payment; (B) The application of payment of interest on a partial payment must be calculated by the amount of the partial payment multiplied by the quotient of the interest due prior to the partial payment and the sum of the delinquent property tax, interest, statutory fees, and court costs due prior to the partial payment; (C) The application of payment of statutory fees on a partial payment must be calculated by the amount of the partial payment multiplied by the quotient of the fees due prior to the partial payment and the sum of the delinquent property tax, interest, statutory fees, and court costs due prior to the partial payment; (D) The application of payment of court costs on a partial payment must be calculated by the amount of the partial payment multiplied by the quotient of the court costs due prior to the partial payment and the sum of the delinquent property tax, interest, statutory fees, and court costs due prior to the partial payment; and (E) A rounding difference between the total of the individual applications of amounts due and the partial payment amount may be applied to any of the amounts due to make the total of the individual applications equal to the partial payment amount.
(A) The delinquent property taxes due prior to the partial payment must be reduced by the amount of the partial payment multiplied by the quotient of delinquent property taxes due prior to the partial payment and the sum of the delinquent property tax, interest, statutory fees, and court costs due prior to the partial payment;
(B) The application of payment of interest on a partial payment must be calculated by the amount of the partial payment multiplied by the quotient of the interest due prior to the partial payment and the sum of the delinquent property tax, interest, statutory fees, and court costs due prior to the partial payment;
(C) The application of payment of statutory fees on a partial payment must be calculated by the amount of the partial payment multiplied by the quotient of the fees due prior to the partial payment and the sum of the delinquent property tax, interest, statutory fees, and court costs due prior to the partial payment;
(D) The application of payment of court costs on a partial payment must be calculated by the amount of the partial payment multiplied by the quotient of the court costs due prior to the partial payment and the sum of the delinquent property tax, interest, statutory fees, and court costs due prior to the partial payment; and
(E) A rounding difference between the total of the individual applications of amounts due and the partial payment amount may be applied to any of the amounts due to make the total of the individual applications equal to the partial payment amount.
(5) The comptroller, in consultation with the Tennessee county trustee's association, shall develop guidelines for the implementation of plans for the acceptance of partial payments of delinquent property taxes.
(6) The delinquent date for property taxes and interest applicable to delinquent property taxes is not affected by application of a partial payment system established in the county.
(7) After a partial payment is applied to delinquent property taxes and interest in accordance with subdivision (d)(4), interest applies only to the amount of delinquent property taxes remaining due.
(8) If a partial payment of delinquent property taxes is accepted, then the partial payment does not release the tax lien on the property upon which the taxes were assessed.
(9) This subsection (d) does not authorize a clerk of a court in which a proceeding is pending, to accept a partial payment of delinquent taxes, interest, or court costs, except pursuant to part 28 of this chapter, § 67-5-2003(g)(5) , or a payment distribution plan approved in a bankruptcy proceeding. As used in this subdivision (d)(9), "proceeding" has the same meaning as defined in § 67-5-2502(c)(1)(D) .
Amended by 2024 Tenn. Acts, ch. 913,s 1, eff. 1/1/2026.
Acts 1907, ch. 602, § 49; Shan., §§ 880, 881, 883, 884; Acts 1923, ch. 77, § 4; Shan. Supp., § 913b7; mod. Code 1932, §§ 1565, 1567, 1568, 1581; Acts 1939, ch. 198, §§ 1, 2; C. Supp. 1950, §§ 1567, 1568; Acts 1978, ch. 673, § 1; T.C.A. (orig. ed.), §§ 67-1302, 67-1303, 67-1312; Acts 1984, ch. 675, § 3; 2011 , ch. 160, § 1.
This section is set out more than once due to postponed, multiple, or conflicting amendments.
Tenn. Code Ann. § 67-5-2415 — TN Code / Title 67 / Chapter 5 / Section 67-5-2415
Notice to taxpayer of suit
Status: in_force

(a) The court shall have jurisdiction to award personal judgment against an owner upon the claim for the debt upon determining that proper process has been served upon such owner. The court shall have jurisdiction to award a judgment enforcing the lien by a sale of the parcel upon determining that any the following actions have occurred as to each owner: (1) That proper process has been served upon an owner; (2) That the owner has actual notice of the proceedings by mail or otherwise; or (3) That constructive notice by publication pursuant to §§ 21-1-203 and 21-1-204 , except as modified in this section, utilizing a description of the parcel in accord with § 67-5-2502(a)(1) , has been given to unborn, unfound and unknown owners and that the plaintiff has made or will make a diligent effort prior to the confirmation of the sale of the parcel to give actual notice of the proceedings to persons owning an interest in the parcel, as identified by the searches described in § 67-5-2502(c)(2) . (b) Notice shall also be sufficient if received by an owner in time to afford the owner a reasonable period to prevent the loss of owner's interest in the parcel. Such loss shall be deemed to occur upon the expiration or termination of the redemption period established by part 27 of this chapter. (c) Notice of the pendency of the proceedings as to a parcel constitutes notice of the pending sale of the parcel and vice versa. (d) If process is to be served upon a defendant, the defendant does not have to receive a copy of the complaint or exhibits. The plaintiff may in lieu thereof furnish to the defendant a notice identifying the proceedings sufficiently for the defendant to determine the parcel which is subject to the delinquent taxes for which the defendant is being sued. (e) A defendant may file a pleading alleging specific facts establishing any of the following defenses: (1) That the parcel is not subject to sale for the taxes; (2) That the taxes have been paid; or (3) That there has been substantial noncompliance with mandatory statutory provisions relating to the proceedings. (f) Process may be served either by an authorized process server or forwarded by certified or registered mail, return receipt requested, or by any alternative delivery service as authorized by Section 7502 of the Internal Revenue Code ( 26 U.S.C. § 7502 ). (g) The return of the receipt signed by the defendant, spouse, or other person deemed appropriate to receive summons or notice as provided for in the Rules of Civil Procedure, or its return marked "refused", "unclaimed", or other similar notation, as evidenced by appropriate notation of such fact by the postal authorities, and filed as a part of the record by the clerk shall be evidence of actual notice and shall be grounds for a default judgment. Process and notices delivered by registered or certified mail or by an alternative delivery service, with a return receipt, to an interested party's registered agent at the agent's address or to the address of the interested party, each as shown on the corporate records of a state secretary of state or other officer responsible for maintaining such records, shall be sufficient to bind the interested party as to notices and service of process. The phrase "appropriate notation of such fact by postal authorities" as used in this subsection (g), includes tracking records located on the website of the delivery service. If a copy of the tracking records is filed with the clerk confirming the delivery, the filing of the return receipt is not required. (h) Prior to confirming the sale of a parcel, the court shall determine that a diligent effort has been made to give actual notice of the proceedings to all interested persons, as identified by the searches described in § 67-5-2502(c)(2) . Amended by 2024 Tenn. Acts, ch. 967,s 29, eff. 5/21/2024. Amended by 2017 Tenn. Acts, ch. 198, s 1, eff. 7/1/2017. Amended by 2015 Tenn. Acts, ch. 414, s 10, eff. 5/8/2015. Amended by 2014 Tenn. Acts, ch. 883, s 8, eff. 7/1/2014. Amended by 2013 Tenn. Acts, ch. 353, s 15, eff. 5/13/2013. Acts 1923, ch. 77, § 8; Shan. Supp., § 913b17; Code 1932, § 1951; Acts 1935, ch. 114, § 1; C. Supp. 1950, § 1591; Acts 1972, ch. 503, § 2; 1973, ch. 296, § 3; 1978, ch. 869, §§ 4, 6-8; 1981, ch. 125, § 1; 1983, ch. 307, § 1; T.C.A. (orig. ed.), § 67-2012; Acts 1984, ch. 661, § 2; 1985, ch. 289, § 1; 1986, ch. 703, §§ 1, 2; 2012 , ch. 979, § 1.
(a) The court shall have jurisdiction to award personal judgment against an owner upon the claim for the debt upon determining that proper process has been served upon such owner. The court shall have jurisdiction to award a judgment enforcing the lien by a sale of the parcel upon determining that any the following actions have occurred as to each owner: (1) That proper process has been served upon an owner; (2) That the owner has actual notice of the proceedings by mail or otherwise; or (3) That constructive notice by publication pursuant to §§ 21-1-203 and 21-1-204 , except as modified in this section, utilizing a description of the parcel in accord with § 67-5-2502(a)(1) , has been given to unborn, unfound and unknown owners and that the plaintiff has made or will make a diligent effort prior to the confirmation of the sale of the parcel to give actual notice of the proceedings to persons owning an interest in the parcel, as identified by the searches described in § 67-5-2502(c)(2) .
(1) That proper process has been served upon an owner;
(2) That the owner has actual notice of the proceedings by mail or otherwise; or
(3) That constructive notice by publication pursuant to §§ 21-1-203 and 21-1-204 , except as modified in this section, utilizing a description of the parcel in accord with § 67-5-2502(a)(1) , has been given to unborn, unfound and unknown owners and that the plaintiff has made or will make a diligent effort prior to the confirmation of the sale of the parcel to give actual notice of the proceedings to persons owning an interest in the parcel, as identified by the searches described in § 67-5-2502(c)(2) .
(b) Notice shall also be sufficient if received by an owner in time to afford the owner a reasonable period to prevent the loss of owner's interest in the parcel. Such loss shall be deemed to occur upon the expiration or termination of the redemption period established by part 27 of this chapter.
(c) Notice of the pendency of the proceedings as to a parcel constitutes notice of the pending sale of the parcel and vice versa.
(d) If process is to be served upon a defendant, the defendant does not have to receive a copy of the complaint or exhibits. The plaintiff may in lieu thereof furnish to the defendant a notice identifying the proceedings sufficiently for the defendant to determine the parcel which is subject to the delinquent taxes for which the defendant is being sued.
(e) A defendant may file a pleading alleging specific facts establishing any of the following defenses: (1) That the parcel is not subject to sale for the taxes; (2) That the taxes have been paid; or (3) That there has been substantial noncompliance with mandatory statutory provisions relating to the proceedings.
(1) That the parcel is not subject to sale for the taxes;
(2) That the taxes have been paid; or
(3) That there has been substantial noncompliance with mandatory statutory provisions relating to the proceedings.
(f) Process may be served either by an authorized process server or forwarded by certified or registered mail, return receipt requested, or by any alternative delivery service as authorized by Section 7502 of the Internal Revenue Code ( 26 U.S.C. § 7502 ).
(g) The return of the receipt signed by the defendant, spouse, or other person deemed appropriate to receive summons or notice as provided for in the Rules of Civil Procedure, or its return marked "refused", "unclaimed", or other similar notation, as evidenced by appropriate notation of such fact by the postal authorities, and filed as a part of the record by the clerk shall be evidence of actual notice and shall be grounds for a default judgment. Process and notices delivered by registered or certified mail or by an alternative delivery service, with a return receipt, to an interested party's registered agent at the agent's address or to the address of the interested party, each as shown on the corporate records of a state secretary of state or other officer responsible for maintaining such records, shall be sufficient to bind the interested party as to notices and service of process. The phrase "appropriate notation of such fact by postal authorities" as used in this subsection (g), includes tracking records located on the website of the delivery service. If a copy of the tracking records is filed with the clerk confirming the delivery, the filing of the return receipt is not required.
(h) Prior to confirming the sale of a parcel, the court shall determine that a diligent effort has been made to give actual notice of the proceedings to all interested persons, as identified by the searches described in § 67-5-2502(c)(2) .
Amended by 2024 Tenn. Acts, ch. 967,s 29, eff. 5/21/2024.
Amended by 2017 Tenn. Acts, ch. 198, s 1, eff. 7/1/2017.
Amended by 2015 Tenn. Acts, ch. 414, s 10, eff. 5/8/2015.
Amended by 2014 Tenn. Acts, ch. 883, s 8, eff. 7/1/2014.
Amended by 2013 Tenn. Acts, ch. 353, s 15, eff. 5/13/2013.
Acts 1923, ch. 77, § 8; Shan. Supp., § 913b17; Code 1932, § 1951; Acts 1935, ch. 114, § 1; C. Supp. 1950, § 1591; Acts 1972, ch. 503, § 2; 1973, ch. 296, § 3; 1978, ch. 869, §§ 4, 6-8; 1981, ch. 125, § 1; 1983, ch. 307, § 1; T.C.A. (orig. ed.), § 67-2012; Acts 1984, ch. 661, § 2; 1985, ch. 289, § 1; 1986, ch. 703, §§ 1, 2; 2012 , ch. 979, § 1.
Tenn. Code Ann. § 67-5-1415 — TN Code / Title 67 / Chapter 5 / Section 67-5-1415
Proceedings by board against assessors
Status: in_force

It is the duty of the members of the county board of equalization, when it is known to or reasonably suspected by any one (1) of them that any assessor of property or deputy assessor has knowingly or willfully classified, valued or assessed any property in violation of the requirements of law, to report the same to the district attorney general or proper officer of the state, whose duty it shall be, upon receiving such information, to institute proceedings against the assessor upon the assessor's bond to recover the penalty prescribed in § 67-5-306 . Acts 1973, ch. 226, § 10; modified; T.C.A., § 67-813.
It is the duty of the members of the county board of equalization, when it is known to or reasonably suspected by any one (1) of them that any assessor of property or deputy assessor has knowingly or willfully classified, valued or assessed any property in violation of the requirements of law, to report the same to the district attorney general or proper officer of the state, whose duty it shall be, upon receiving such information, to institute proceedings against the assessor upon the assessor's bond to recover the penalty prescribed in § 67-5-306 .
Acts 1973, ch. 226, § 10; modified; T.C.A., § 67-813.
Tenn. Code Ann. § 67-4-301 — TN Code / Title 67 / Chapter 4 / Section 67-4-301
Part definitions
Status: in_force

As used in this part, unless the context otherwise requires: (1) "Commissioner" means the commissioner of revenue; (2) "Department" means the department of revenue; (3) (A) "Gross receipts," for the purpose of taxes administered under this part, means total receipts before anything is deducted, but does not include receipts from incidental business, when such incidental business, if separately carried on, would not be subject to a tax measured by gross receipts under parts 2-6 of this chapter; (B) "Gross receipts" does not include state and local sales and other taxes collected from customers and remitted to the respective taxing authorities by utilities; and (4) "Incidental business" means a business carried on separately and not a part of the business made the subject of privilege taxation. Acts 1937, ch. 108, art. 3, § 2; C. Supp. 1950, § 1248.5 (Williams, § 1248.138); Acts 1959, ch. 299, § 1; T.C.A. (orig. ed.), § 67-4316; Acts 1985, ch. 414, § 1; 1988, ch. 898, § 1.
As used in this part, unless the context otherwise requires:
(1) "Commissioner" means the commissioner of revenue;
(2) "Department" means the department of revenue;
(3) (A) "Gross receipts," for the purpose of taxes administered under this part, means total receipts before anything is deducted, but does not include receipts from incidental business, when such incidental business, if separately carried on, would not be subject to a tax measured by gross receipts under parts 2-6 of this chapter; (B) "Gross receipts" does not include state and local sales and other taxes collected from customers and remitted to the respective taxing authorities by utilities; and
(A) "Gross receipts," for the purpose of taxes administered under this part, means total receipts before anything is deducted, but does not include receipts from incidental business, when such incidental business, if separately carried on, would not be subject to a tax measured by gross receipts under parts 2-6 of this chapter;
(B) "Gross receipts" does not include state and local sales and other taxes collected from customers and remitted to the respective taxing authorities by utilities; and
(4) "Incidental business" means a business carried on separately and not a part of the business made the subject of privilege taxation.
Acts 1937, ch. 108, art. 3, § 2; C. Supp. 1950, § 1248.5 (Williams, § 1248.138); Acts 1959, ch. 299, § 1; T.C.A. (orig. ed.), § 67-4316; Acts 1985, ch. 414, § 1; 1988, ch. 898, § 1.
Tenn. Code Ann. § 67-3-203 — TN Code / Title 67 / Chapter 3 / Section 67-3-203
Special privilege tax
Status: in_force

Subject to exemptions provided in part 4 of this chapter, in addition to the taxes imposed on motor fuels in §§ 67-3-201 and 67-3-202 , a special privilege tax of one cent (1¢) per gallon is imposed on all petroleum products. The tax imposed by this section shall be collected and paid at those times, in the manner, and by those persons specified in this chapter. Acts 1997, ch. 316, § 1; T.C.A., § 67-3-1303 .
Subject to exemptions provided in part 4 of this chapter, in addition to the taxes imposed on motor fuels in §§ 67-3-201 and 67-3-202 , a special privilege tax of one cent (1¢) per gallon is imposed on all petroleum products. The tax imposed by this section shall be collected and paid at those times, in the manner, and by those persons specified in this chapter.
Acts 1997, ch. 316, § 1; T.C.A., § 67-3-1303 .
Tenn. Code Ann. § 67-4-405 — TN Code / Title 67 / Chapter 4 / Section 67-4-405
Gas, water and electric companies
Status: in_force

(a) (1) Each person engaged in the business of furnishing or distributing gas, water, or electric current, whether to a dealer, consumer, municipality or other customer shall, for the privilege of doing such business, pay to the state for state purposes an amount equal to three percent (3%) of the gross receipts derived from intrastate business in the state. (2) Persons engaged in the business of manufacturing gas or of distributing manufactured gas or natural gas shall, in lieu of subsection (a), pay an amount equal to one and one-half percent (1.5%) of the gross receipts derived from intrastate business in this state, which payment shall be subject to the same provisions, restrictions and credits otherwise provided in this section. (b) This tax does not apply to cities or other political subdivisions of the state owning and operating gas companies, water companies or power plants, nor does it apply to persons having not-for-profit status owning and operating water companies, nor does it apply to persons meeting the criteria of exempt wholesale generators or FERC certified wholesale power marketers under the Federal Power Act of 1992 ( 16 U.S.C. § 791a et seq.), nor does it apply to any governmental agency of the United States. (c) It is the intention of this section to levy a tax for the privilege of engaging in intrastate commerce carried on wholly within this state and not a part of interstate commerce. (d) There shall be credited upon the tax imposed by this section any taxes paid by the owner of such business on any gas, water or electric company businesses under the Excise Tax Law, compiled in part 20 of this chapter, and the Franchise Tax Law, compiled in part 21 of this chapter, during the calendar year in which the tax levied becomes due. (e) Each person engaged in the business of furnishing or distributing electric current or water shall be exempt from the tax imposed by this section upon gross receipts up to the amount of five thousand dollars ($5,000), but shall be liable to the state tax upon all gross receipts in excess of five thousand dollars ($5,000). (f) The taxes imposed in this section should be administered and collected in accordance with part 3 of this chapter. Acts 1937, ch. 108, art. 2, § 2, Item G; 1937, ch. 192, §§ 19, 20-A; 1939, ch. 21, § 31; 1941, ch. 51, § 19; 1943, ch. 112, § 1; C. Supp. 1950, § 1248.3, Item H (Williams, § 1248.126); T.C.A. (orig. ed.), § 67-4102, Item H; Acts 1999, ch. 406, § 10; 1999, ch. 407, § 1; 2011 , ch. 404, § 1.
(a) (1) Each person engaged in the business of furnishing or distributing gas, water, or electric current, whether to a dealer, consumer, municipality or other customer shall, for the privilege of doing such business, pay to the state for state purposes an amount equal to three percent (3%) of the gross receipts derived from intrastate business in the state. (2) Persons engaged in the business of manufacturing gas or of distributing manufactured gas or natural gas shall, in lieu of subsection (a), pay an amount equal to one and one-half percent (1.5%) of the gross receipts derived from intrastate business in this state, which payment shall be subject to the same provisions, restrictions and credits otherwise provided in this section.
(1) Each person engaged in the business of furnishing or distributing gas, water, or electric current, whether to a dealer, consumer, municipality or other customer shall, for the privilege of doing such business, pay to the state for state purposes an amount equal to three percent (3%) of the gross receipts derived from intrastate business in the state.
(2) Persons engaged in the business of manufacturing gas or of distributing manufactured gas or natural gas shall, in lieu of subsection (a), pay an amount equal to one and one-half percent (1.5%) of the gross receipts derived from intrastate business in this state, which payment shall be subject to the same provisions, restrictions and credits otherwise provided in this section.
(b) This tax does not apply to cities or other political subdivisions of the state owning and operating gas companies, water companies or power plants, nor does it apply to persons having not-for-profit status owning and operating water companies, nor does it apply to persons meeting the criteria of exempt wholesale generators or FERC certified wholesale power marketers under the Federal Power Act of 1992 ( 16 U.S.C. § 791a et seq.), nor does it apply to any governmental agency of the United States.
(c) It is the intention of this section to levy a tax for the privilege of engaging in intrastate commerce carried on wholly within this state and not a part of interstate commerce.
(d) There shall be credited upon the tax imposed by this section any taxes paid by the owner of such business on any gas, water or electric company businesses under the Excise Tax Law, compiled in part 20 of this chapter, and the Franchise Tax Law, compiled in part 21 of this chapter, during the calendar year in which the tax levied becomes due.
(e) Each person engaged in the business of furnishing or distributing electric current or water shall be exempt from the tax imposed by this section upon gross receipts up to the amount of five thousand dollars ($5,000), but shall be liable to the state tax upon all gross receipts in excess of five thousand dollars ($5,000).
(f) The taxes imposed in this section should be administered and collected in accordance with part 3 of this chapter.
Acts 1937, ch. 108, art. 2, § 2, Item G; 1937, ch. 192, §§ 19, 20-A; 1939, ch. 21, § 31; 1941, ch. 51, § 19; 1943, ch. 112, § 1; C. Supp. 1950, § 1248.3, Item H (Williams, § 1248.126); T.C.A. (orig. ed.), § 67-4102, Item H; Acts 1999, ch. 406, § 10; 1999, ch. 407, § 1; 2011 , ch. 404, § 1.
Tenn. Code Ann. § 67-6-104 — TN Code / Title 67 / Chapter 6 / Section 67-6-104
Apportionment of sales and use tax revenue to commercial development districts in rural, economically distressed counties
Status: in_force

(a) It is the intent of this section to address rural, economically distressed counties experiencing persistent high unemployment and traditionally low levels of family income by apportioning and distributing sales and use tax revenue to commercial development districts in those counties. (b) For purposes of this section: (1) "Base tax revenues" means the revenues generated, if any, from the collection of state and local sales and use taxes from all businesses within the certified commercial development district as of the end of the fiscal year of this state immediately prior to the year in which the county, municipality, or industrial development corporation is entitled to receive an allocation of tax revenue pursuant to this section; (2) "Commercial development district" means one (1) or more parcels of real property located within an eligible county, in which it is reasonably anticipated and projected that state and local sales and use taxes will increase, or be newly generated in the case of a district in which no base tax revenues have been previously generated, as a result of the development of the real property by an amount in excess of the increases in the collection of state and local sales and use tax revenues reasonably projected to occur within that area without regard to the development of the real property. Prior to December 31, 2014, "commercial development district" shall include the development of an area comprised of property acquired from the state by an eligible county or an industrial development corporation established by such eligible county, which property was used by the state as a correctional facility. On and after December 31, 2014, "commercial development district" may include the development of an area comprised of property acquired from the state by an eligible county or an industrial development corporation established in such eligible county, which property was used by the state as a correctional facility. Each commercial development district shall be certified by the commissioner of finance and administration; (3) "Eligible county" means: (A) Prior to December 31, 2014, a county that meets one (1) or more of the following criteria as of December 31, 2014: (i) Has a per capita income of eighty percent (80%) or less of the national average; (ii) Has an unemployment rate that is, for the most recent twenty-four-month period for which data are available, at least one percent (1%) greater than the national average unemployment rate, or, for the most recent twelve-month period for which data are available, at least two percent (2%) greater than the state average unemployment rate; (iii) Has experienced, or is about to experience, a special need arising from actual or threatened severe unemployment or economic adjustment problems resulting from severe short-term or long-term changes in economic conditions, as determined by the commissioner of finance and administration, the commissioner of economic and community development, and the commissioner of revenue; or (iv) Has an area comprised of property acquired from the state by an eligible county or an industrial development corporation established in such eligible county, which property was used by the state as a correctional facility; (B) On and after December 31, 2014, a distressed rural county that will be identified using a consistent methodology based on a set of broadly available measures of economic well-being that could include county unemployment rate, rate of job growth, personal income per capita, property tax base per capita, percent high school graduates, and percent below poverty. Using this consistent methodology, the commissioner of finance and administration, the commissioner of economic and community development, and the commissioner of revenue shall determine which counties are eligible counties and shall publish a list of the eligible counties meeting the criteria in this subdivision (b)(3)(B) by July 1 of each year; or (C) On or after January 1, 2021, a county that borders at least three (3) distressed rural counties, as identified pursuant to subdivision (b)(3)(B), in at least three (3) fiscal years since fiscal year 2016-2017, and whose governing body, or the governing body of a municipality within the county, passed a resolution or other official action prior to January 1, 2021, that seeks to establish or certify a commercial development district within the county or municipality and receive an allocation of sales and use tax revenues under this section; (4) "Proprietary information" means commercial or financial information that is used either directly or indirectly in the business of any person submitting information to the commissioner under this section, and that gives such person an advantage or an opportunity to obtain an advantage over competitors who do not know or use such information; and (5) "Trade secrets" means any materials or processes used directly or indirectly in the business of a person or entity submitting information or documentation related to such materials or processes to the commissioner under this section, and that give the person or entity an advantage or an opportunity to obtain an advantage over competitors who do not know or use them. (c) In order to receive an allocation of sales and use tax revenues under this section, an eligible county or a municipality located within the eligible county, or an industrial development corporation established by such eligible county or municipality, must submit a completed application to the commissioner of finance and administration together with an application fee in an amount established by the department of finance and administration. The application shall be developed by the department of finance and administration. (d) The application shall include, but not be limited to, the following information: (1) A list of tax parcels composing the proposed commercial development district, including owners and parcel numbers, from which the sales and use tax revenues will be generated; (2) A map, survey or drawing clearly identifying the boundaries of the proposed commercial development district area; (3) Written confirmation of the current zoning of the proposed commercial development district; (4) A description of the financing for the project to be located within the proposed commercial development district; (5) The number of jobs that the applicant estimates will be created in the proposed commercial development district and the wages, salaries and other compensation that will be paid to those persons holding the jobs; (6) The estimated development and construction costs of the project to be located in the proposed commercial development district; (7) A certification from the county that it complied with the criteria required to be eligible; (8) A resolution or other official action from the governing body of the eligible county requesting consideration of the application and approval of the proposed commercial development district and acknowledging that an increment of sales and use taxes from future activities within the commercial development district will be applied as payments on the indebtedness financing the commercial development district; (9) If the commercial development district is located in a municipality within an eligible county, a resolution or other official action by the governing body of the municipality requesting consideration of the application and approval of the proposed commercial development district and acknowledging that an increment of sales and use taxes from future activities within the commercial development district will be applied as payments on the indebtedness financing the commercial development district; (10) An affidavit, on a form provided by the department of finance and administration, signed by the applicant certifying that the proposed commercial development district cannot proceed without the availability of financing under this section along with supporting documentation establishing the need for and the amount of the financing; and (11) Such financial and other information as may be necessary for the commissioner of finance and administration to evaluate the application. (e) No action shall be taken with respect to an application until the commissioner of finance and administration determines that the commissioner has received all information that may be relevant or necessary in determining the qualifications of the applicant and the proposed commercial development district. (f) Each commercial development district shall be certified by the commissioner of finance and administration. Once the commissioner of finance and administration has received all of the information required by subsection (d), the commissioner may certify, in the commissioner's discretion, the proposed commercial development district as a commercial development district. Each commercial development district shall include at least five million dollars ($5,000,000) in planned capital improvements. Prior to certifying the commercial development district, the commissioner must determine that the commercial development district is not economically feasible without the tax revenue allocation contemplated in this section. Notwithstanding this section to the contrary, no tax revenue allocation shall be allowed unless the commissioners of finance and administration, revenue, and economic and community development determine, in their sole discretion, that the tax revenue allocation is in the best interest of the state. For purposes of this subsection (f), "best interest of the state" means a determination by the commissioners of finance and administration, revenue, and economic and community development that the commercial development district is a result of the tax revenue allocation provided in this section and that the economic benefits to this state resulting from the commercial development district outweigh the anticipated amount of the tax revenue allocation. In evaluating the information submitted with the application the commissioner may consider normal underwriting criteria such as debt capacity, ability to repay, equity and other capital at risk for the project, and the proposed terms of the contemplated indebtedness. (g) (1) Notwithstanding the allocations provided for in § 67-6-103(a) , if real property located in an eligible county is acquired and developed as a commercial development district, and is certified by the commissioner of finance and administration as a commercial development district, then an amount shall be apportioned and distributed to the county, the municipality, or the industrial development corporation equal to the amount of state sales tax revenue derived from five and one-half percent (5.5%) of the tax rate imposed pursuant to § 67-6-202 on all sales in the commercial development district and the amount of local sales tax revenue not dedicated for school purposes pursuant to § 67-6-712(a)(1) derived from all sales in the commercial development district in excess of base tax revenues; provided, that an apportionment and distribution of such amount is authorized under this section for any commercial development district in which no sales and use taxes have been generated for at least five (5) years prior to the apportionment and distribution. Such amount distributed shall be for the exclusive use of the county, municipality or industrial development corporation and shall be used solely for the purpose of paying the indebtedness, principal and interest, and closing costs incurred by the county, municipality or industrial development corporation in financing the commercial development district. For eligible counties as defined in subdivision (b)(3)(A), the period for such distributions shall be twenty (20) years. For eligible counties as defined in subdivision (b)(3)(B) or (b)(3)(C), the commissioner of finance and administration shall determine the period in which distributions will be necessary to provide the financing hereunder, and the period for such distributions shall not exceed twenty (20) years. The distributions shall cease upon the expiration of the applicable distribution period or upon satisfaction of the financing of the commercial development district, whichever occurs first. Following the expiration of the distribution period, all amounts that would have otherwise been distributed to the county, the municipality, or the industrial development corporation shall be allocated as provided elsewhere without regard to this section. (2) Notwithstanding any provision of this section to the contrary, no portion of the revenue derived from the increase in the rate of sales and use tax allocated to educational purposes pursuant to chapter 529, § 9 of the Public Acts of 1992, and no portion of the revenue derived from the increase in the rate of sales and use tax from six percent (6%) to seven percent (7%) contained in chapter 856, § 4 of the Public Acts of 2002, shall be distributed to the eligible county, the municipality or the industrial development corporation for the financing contemplated in this section. The revenue shall continue to be allocated as provided in chapter 529 of the Public Acts of 1992, and chapter 856 of the Public Acts of 2002, respectively. (3) If, at the close of any fiscal year, the revenue from the tax is not sufficient to meet the total debt service of the eligible county, the municipality, or the industrial development corporation for indebtedness incurred with respect to the commercial development district, the balance, if any, of the debt service not paid by revenue from the tax at the end of the fiscal year shall be accumulated in a separate deficit account. If the revenue from the tax in any fiscal year exceeds the total of the debt service requirements of the commercial development district for that year, the surplus revenue thus accruing shall be retained by the eligible county, the municipality, or the industrial development corporation as a sinking fund for any future debt service requirements of the commercial development district or, alternatively, to reduce the then outstanding balance of the indebtedness. (h) The apportionment and distribution of state sales and use taxes to the county, municipality, or industrial development corporation, as provided in this section shall commence at the beginning of the fiscal year after the certification of the commercial development district. The apportionment and payment shall be made by the department of revenue to the county, municipality or industrial development corporation within ninety (90) days of the end of each fiscal year for which the county, municipality or industrial development corporation is entitled to receive an allocation and payment pursuant to this chapter. (i) The fact that an eligible county filed an application with the commissioner of finance and administration, whether an application was approved, the number of jobs created by a commercial development district, and the wages, salaries and other compensation that will be paid to the persons holding those jobs shall be available for public inspection pursuant to title 10, chapter 7. Any financial information, including, but not limited to, proprietary information and trade secrets contained in an application, or submitted with any accompanying documents or information filed with the application pursuant to this section, shall be confidential and shall not be open to the public for inspection, notwithstanding the public records provisions of title 10, chapter 7. Such financial information, proprietary information and trade secrets shall not be disclosed to any person, except that the commissioner of finance and administration is authorized to make the following disclosures: (1) Within the department of finance and administration, the department of revenue, and the department of economic and community development in the course of their official duties; and (2) To the comptroller of the treasury or the comptroller's designee for the purpose of an audit of the department of finance and administration, the department of revenue, or the department of economic and community development. (j) In addition to other powers and duties prescribed by law, the commissioner of finance and administration shall monitor the financing of commercial development districts pursuant to this section, but the transfer of sales and use tax revenues to pay indebtedness shall be vested with the eligible county, the municipality within the eligible county, or the industrial development corporation established by an eligible county or the municipality. The commissioner shall report annually to the finance, ways and means committees of the senate and the house of representatives, and the state and local government committee of the senate and the state government committee of the house of representatives, regarding each allocation of tax revenues pursuant to this section. (k) The commissioner of finance and administration is authorized to require an eligible county with a commercial development district to file a report with the department of finance and administration. A report filed by an eligible county may include, but is not limited to, an analysis detailing the progress of the commercial development district, the number of jobs generated by the commercial development district, the wages, salaries and other compensation paid to those holding the jobs, and such additional information as requested by the commissioner of finance and administration. (l) The department of finance and administration is authorized to promulgate rules and regulations to effectuate the purposes of this section. Such rules shall be promulgated in accordance with the Uniform Administrative Procedures Act, compiled in title 4, chapter 5. (m) The tax revenue allocation available pursuant to this section applies to eligible counties or municipalities located in such eligible counties, or industrial development corporations established by such eligible counties or municipalities, that: (1) (A) In the case of property located in eligible counties as defined in subdivision (b)(3)(A), have filed an application with the commissioner of finance and administration prior to December 31, 2014; (B) In the case of property located in eligible counties as defined in subdivision (b)(3)(B), have filed an application with the commissioner of finance and administration on or after December 31, 2014, and prior to December 31, 2030; or (C) In the case of property located in eligible counties as defined in subdivision (b)(3)(C), have filed an application with the commissioner of finance and administration on or after January 1, 2021, and no later than December 31, 2026; and (2) Have received the approval of a commercial development district from the commissioner of finance and administration on or before June 30, 2031. Amended by 2024 Tenn. Acts, ch. 920,s 2, eff. 5/3/2024. Amended by 2024 Tenn. Acts, ch. 920,s 1, eff. 5/3/2024. Amended by 2022 Tenn. Acts, ch. 1006, Secs.s 1, s 2 eff. 5/5/2022. Amended by 2021 Tenn. Acts, ch. 561, s 1, eff. 5/26/2021. Amended by 2020 Tenn. Acts, ch. 809, Secs.s 1, s 2, s 3, s 4 eff. 7/15/2020. Amended by 2018 Tenn. Acts, ch. 896, Secs.s 1, s 2 eff. 5/3/2018. Added by 2014 Tenn. Acts, ch. 985,s 1, eff. 5/22/2014.
(a) It is the intent of this section to address rural, economically distressed counties experiencing persistent high unemployment and traditionally low levels of family income by apportioning and distributing sales and use tax revenue to commercial development districts in those counties.
(b) For purposes of this section: (1) "Base tax revenues" means the revenues generated, if any, from the collection of state and local sales and use taxes from all businesses within the certified commercial development district as of the end of the fiscal year of this state immediately prior to the year in which the county, municipality, or industrial development corporation is entitled to receive an allocation of tax revenue pursuant to this section; (2) "Commercial development district" means one (1) or more parcels of real property located within an eligible county, in which it is reasonably anticipated and projected that state and local sales and use taxes will increase, or be newly generated in the case of a district in which no base tax revenues have been previously generated, as a result of the development of the real property by an amount in excess of the increases in the collection of state and local sales and use tax revenues reasonably projected to occur within that area without regard to the development of the real property. Prior to December 31, 2014, "commercial development district" shall include the development of an area comprised of property acquired from the state by an eligible county or an industrial development corporation established by such eligible county, which property was used by the state as a correctional facility. On and after December 31, 2014, "commercial development district" may include the development of an area comprised of property acquired from the state by an eligible county or an industrial development corporation established in such eligible county, which property was used by the state as a correctional facility. Each commercial development district shall be certified by the commissioner of finance and administration; (3) "Eligible county" means: (A) Prior to December 31, 2014, a county that meets one (1) or more of the following criteria as of December 31, 2014: (i) Has a per capita income of eighty percent (80%) or less of the national average; (ii) Has an unemployment rate that is, for the most recent twenty-four-month period for which data are available, at least one percent (1%) greater than the national average unemployment rate, or, for the most recent twelve-month period for which data are available, at least two percent (2%) greater than the state average unemployment rate; (iii) Has experienced, or is about to experience, a special need arising from actual or threatened severe unemployment or economic adjustment problems resulting from severe short-term or long-term changes in economic conditions, as determined by the commissioner of finance and administration, the commissioner of economic and community development, and the commissioner of revenue; or (iv) Has an area comprised of property acquired from the state by an eligible county or an industrial development corporation established in such eligible county, which property was used by the state as a correctional facility; (B) On and after December 31, 2014, a distressed rural county that will be identified using a consistent methodology based on a set of broadly available measures of economic well-being that could include county unemployment rate, rate of job growth, personal income per capita, property tax base per capita, percent high school graduates, and percent below poverty. Using this consistent methodology, the commissioner of finance and administration, the commissioner of economic and community development, and the commissioner of revenue shall determine which counties are eligible counties and shall publish a list of the eligible counties meeting the criteria in this subdivision (b)(3)(B) by July 1 of each year; or (C) On or after January 1, 2021, a county that borders at least three (3) distressed rural counties, as identified pursuant to subdivision (b)(3)(B), in at least three (3) fiscal years since fiscal year 2016-2017, and whose governing body, or the governing body of a municipality within the county, passed a resolution or other official action prior to January 1, 2021, that seeks to establish or certify a commercial development district within the county or municipality and receive an allocation of sales and use tax revenues under this section; (4) "Proprietary information" means commercial or financial information that is used either directly or indirectly in the business of any person submitting information to the commissioner under this section, and that gives such person an advantage or an opportunity to obtain an advantage over competitors who do not know or use such information; and (5) "Trade secrets" means any materials or processes used directly or indirectly in the business of a person or entity submitting information or documentation related to such materials or processes to the commissioner under this section, and that give the person or entity an advantage or an opportunity to obtain an advantage over competitors who do not know or use them.
(1) "Base tax revenues" means the revenues generated, if any, from the collection of state and local sales and use taxes from all businesses within the certified commercial development district as of the end of the fiscal year of this state immediately prior to the year in which the county, municipality, or industrial development corporation is entitled to receive an allocation of tax revenue pursuant to this section;
(2) "Commercial development district" means one (1) or more parcels of real property located within an eligible county, in which it is reasonably anticipated and projected that state and local sales and use taxes will increase, or be newly generated in the case of a district in which no base tax revenues have been previously generated, as a result of the development of the real property by an amount in excess of the increases in the collection of state and local sales and use tax revenues reasonably projected to occur within that area without regard to the development of the real property. Prior to December 31, 2014, "commercial development district" shall include the development of an area comprised of property acquired from the state by an eligible county or an industrial development corporation established by such eligible county, which property was used by the state as a correctional facility. On and after December 31, 2014, "commercial development district" may include the development of an area comprised of property acquired from the state by an eligible county or an industrial development corporation established in such eligible county, which property was used by the state as a correctional facility. Each commercial development district shall be certified by the commissioner of finance and administration;
(3) "Eligible county" means: (A) Prior to December 31, 2014, a county that meets one (1) or more of the following criteria as of December 31, 2014: (i) Has a per capita income of eighty percent (80%) or less of the national average; (ii) Has an unemployment rate that is, for the most recent twenty-four-month period for which data are available, at least one percent (1%) greater than the national average unemployment rate, or, for the most recent twelve-month period for which data are available, at least two percent (2%) greater than the state average unemployment rate; (iii) Has experienced, or is about to experience, a special need arising from actual or threatened severe unemployment or economic adjustment problems resulting from severe short-term or long-term changes in economic conditions, as determined by the commissioner of finance and administration, the commissioner of economic and community development, and the commissioner of revenue; or (iv) Has an area comprised of property acquired from the state by an eligible county or an industrial development corporation established in such eligible county, which property was used by the state as a correctional facility; (B) On and after December 31, 2014, a distressed rural county that will be identified using a consistent methodology based on a set of broadly available measures of economic well-being that could include county unemployment rate, rate of job growth, personal income per capita, property tax base per capita, percent high school graduates, and percent below poverty. Using this consistent methodology, the commissioner of finance and administration, the commissioner of economic and community development, and the commissioner of revenue shall determine which counties are eligible counties and shall publish a list of the eligible counties meeting the criteria in this subdivision (b)(3)(B) by July 1 of each year; or (C) On or after January 1, 2021, a county that borders at least three (3) distressed rural counties, as identified pursuant to subdivision (b)(3)(B), in at least three (3) fiscal years since fiscal year 2016-2017, and whose governing body, or the governing body of a municipality within the county, passed a resolution or other official action prior to January 1, 2021, that seeks to establish or certify a commercial development district within the county or municipality and receive an allocation of sales and use tax revenues under this section;
(A) Prior to December 31, 2014, a county that meets one (1) or more of the following criteria as of December 31, 2014: (i) Has a per capita income of eighty percent (80%) or less of the national average; (ii) Has an unemployment rate that is, for the most recent twenty-four-month period for which data are available, at least one percent (1%) greater than the national average unemployment rate, or, for the most recent twelve-month period for which data are available, at least two percent (2%) greater than the state average unemployment rate; (iii) Has experienced, or is about to experience, a special need arising from actual or threatened severe unemployment or economic adjustment problems resulting from severe short-term or long-term changes in economic conditions, as determined by the commissioner of finance and administration, the commissioner of economic and community development, and the commissioner of revenue; or (iv) Has an area comprised of property acquired from the state by an eligible county or an industrial development corporation established in such eligible county, which property was used by the state as a correctional facility;
(i) Has a per capita income of eighty percent (80%) or less of the national average;
(ii) Has an unemployment rate that is, for the most recent twenty-four-month period for which data are available, at least one percent (1%) greater than the national average unemployment rate, or, for the most recent twelve-month period for which data are available, at least two percent (2%) greater than the state average unemployment rate;
(iii) Has experienced, or is about to experience, a special need arising from actual or threatened severe unemployment or economic adjustment problems resulting from severe short-term or long-term changes in economic conditions, as determined by the commissioner of finance and administration, the commissioner of economic and community development, and the commissioner of revenue; or
(iv) Has an area comprised of property acquired from the state by an eligible county or an industrial development corporation established in such eligible county, which property was used by the state as a correctional facility;
(B) On and after December 31, 2014, a distressed rural county that will be identified using a consistent methodology based on a set of broadly available measures of economic well-being that could include county unemployment rate, rate of job growth, personal income per capita, property tax base per capita, percent high school graduates, and percent below poverty. Using this consistent methodology, the commissioner of finance and administration, the commissioner of economic and community development, and the commissioner of revenue shall determine which counties are eligible counties and shall publish a list of the eligible counties meeting the criteria in this subdivision (b)(3)(B) by July 1 of each year; or
(C) On or after January 1, 2021, a county that borders at least three (3) distressed rural counties, as identified pursuant to subdivision (b)(3)(B), in at least three (3) fiscal years since fiscal year 2016-2017, and whose governing body, or the governing body of a municipality within the county, passed a resolution or other official action prior to January 1, 2021, that seeks to establish or certify a commercial development district within the county or municipality and receive an allocation of sales and use tax revenues under this section;
(4) "Proprietary information" means commercial or financial information that is used either directly or indirectly in the business of any person submitting information to the commissioner under this section, and that gives such person an advantage or an opportunity to obtain an advantage over competitors who do not know or use such information; and
(5) "Trade secrets" means any materials or processes used directly or indirectly in the business of a person or entity submitting information or documentation related to such materials or processes to the commissioner under this section, and that give the person or entity an advantage or an opportunity to obtain an advantage over competitors who do not know or use them.
(c) In order to receive an allocation of sales and use tax revenues under this section, an eligible county or a municipality located within the eligible county, or an industrial development corporation established by such eligible county or municipality, must submit a completed application to the commissioner of finance and administration together with an application fee in an amount established by the department of finance and administration. The application shall be developed by the department of finance and administration.
(d) The application shall include, but not be limited to, the following information: (1) A list of tax parcels composing the proposed commercial development district, including owners and parcel numbers, from which the sales and use tax revenues will be generated; (2) A map, survey or drawing clearly identifying the boundaries of the proposed commercial development district area; (3) Written confirmation of the current zoning of the proposed commercial development district; (4) A description of the financing for the project to be located within the proposed commercial development district; (5) The number of jobs that the applicant estimates will be created in the proposed commercial development district and the wages, salaries and other compensation that will be paid to those persons holding the jobs; (6) The estimated development and construction costs of the project to be located in the proposed commercial development district; (7) A certification from the county that it complied with the criteria required to be eligible; (8) A resolution or other official action from the governing body of the eligible county requesting consideration of the application and approval of the proposed commercial development district and acknowledging that an increment of sales and use taxes from future activities within the commercial development district will be applied as payments on the indebtedness financing the commercial development district; (9) If the commercial development district is located in a municipality within an eligible county, a resolution or other official action by the governing body of the municipality requesting consideration of the application and approval of the proposed commercial development district and acknowledging that an increment of sales and use taxes from future activities within the commercial development district will be applied as payments on the indebtedness financing the commercial development district; (10) An affidavit, on a form provided by the department of finance and administration, signed by the applicant certifying that the proposed commercial development district cannot proceed without the availability of financing under this section along with supporting documentation establishing the need for and the amount of the financing; and (11) Such financial and other information as may be necessary for the commissioner of finance and administration to evaluate the application.
(1) A list of tax parcels composing the proposed commercial development district, including owners and parcel numbers, from which the sales and use tax revenues will be generated;
(2) A map, survey or drawing clearly identifying the boundaries of the proposed commercial development district area;
(3) Written confirmation of the current zoning of the proposed commercial development district;
(4) A description of the financing for the project to be located within the proposed commercial development district;
(5) The number of jobs that the applicant estimates will be created in the proposed commercial development district and the wages, salaries and other compensation that will be paid to those persons holding the jobs;
(6) The estimated development and construction costs of the project to be located in the proposed commercial development district;
(7) A certification from the county that it complied with the criteria required to be eligible;
(8) A resolution or other official action from the governing body of the eligible county requesting consideration of the application and approval of the proposed commercial development district and acknowledging that an increment of sales and use taxes from future activities within the commercial development district will be applied as payments on the indebtedness financing the commercial development district;
(9) If the commercial development district is located in a municipality within an eligible county, a resolution or other official action by the governing body of the municipality requesting consideration of the application and approval of the proposed commercial development district and acknowledging that an increment of sales and use taxes from future activities within the commercial development district will be applied as payments on the indebtedness financing the commercial development district;
(10) An affidavit, on a form provided by the department of finance and administration, signed by the applicant certifying that the proposed commercial development district cannot proceed without the availability of financing under this section along with supporting documentation establishing the need for and the amount of the financing; and
(11) Such financial and other information as may be necessary for the commissioner of finance and administration to evaluate the application.
(e) No action shall be taken with respect to an application until the commissioner of finance and administration determines that the commissioner has received all information that may be relevant or necessary in determining the qualifications of the applicant and the proposed commercial development district.
(f) Each commercial development district shall be certified by the commissioner of finance and administration. Once the commissioner of finance and administration has received all of the information required by subsection (d), the commissioner may certify, in the commissioner's discretion, the proposed commercial development district as a commercial development district. Each commercial development district shall include at least five million dollars ($5,000,000) in planned capital improvements. Prior to certifying the commercial development district, the commissioner must determine that the commercial development district is not economically feasible without the tax revenue allocation contemplated in this section. Notwithstanding this section to the contrary, no tax revenue allocation shall be allowed unless the commissioners of finance and administration, revenue, and economic and community development determine, in their sole discretion, that the tax revenue allocation is in the best interest of the state. For purposes of this subsection (f), "best interest of the state" means a determination by the commissioners of finance and administration, revenue, and economic and community development that the commercial development district is a result of the tax revenue allocation provided in this section and that the economic benefits to this state resulting from the commercial development district outweigh the anticipated amount of the tax revenue allocation. In evaluating the information submitted with the application the commissioner may consider normal underwriting criteria such as debt capacity, ability to repay, equity and other capital at risk for the project, and the proposed terms of the contemplated indebtedness.
(g) (1) Notwithstanding the allocations provided for in § 67-6-103(a) , if real property located in an eligible county is acquired and developed as a commercial development district, and is certified by the commissioner of finance and administration as a commercial development district, then an amount shall be apportioned and distributed to the county, the municipality, or the industrial development corporation equal to the amount of state sales tax revenue derived from five and one-half percent (5.5%) of the tax rate imposed pursuant to § 67-6-202 on all sales in the commercial development district and the amount of local sales tax revenue not dedicated for school purposes pursuant to § 67-6-712(a)(1) derived from all sales in the commercial development district in excess of base tax revenues; provided, that an apportionment and distribution of such amount is authorized under this section for any commercial development district in which no sales and use taxes have been generated for at least five (5) years prior to the apportionment and distribution. Such amount distributed shall be for the exclusive use of the county, municipality or industrial development corporation and shall be used solely for the purpose of paying the indebtedness, principal and interest, and closing costs incurred by the county, municipality or industrial development corporation in financing the commercial development district. For eligible counties as defined in subdivision (b)(3)(A), the period for such distributions shall be twenty (20) years. For eligible counties as defined in subdivision (b)(3)(B) or (b)(3)(C), the commissioner of finance and administration shall determine the period in which distributions will be necessary to provide the financing hereunder, and the period for such distributions shall not exceed twenty (20) years. The distributions shall cease upon the expiration of the applicable distribution period or upon satisfaction of the financing of the commercial development district, whichever occurs first. Following the expiration of the distribution period, all amounts that would have otherwise been distributed to the county, the municipality, or the industrial development corporation shall be allocated as provided elsewhere without regard to this section. (2) Notwithstanding any provision of this section to the contrary, no portion of the revenue derived from the increase in the rate of sales and use tax allocated to educational purposes pursuant to chapter 529, § 9 of the Public Acts of 1992, and no portion of the revenue derived from the increase in the rate of sales and use tax from six percent (6%) to seven percent (7%) contained in chapter 856, § 4 of the Public Acts of 2002, shall be distributed to the eligible county, the municipality or the industrial development corporation for the financing contemplated in this section. The revenue shall continue to be allocated as provided in chapter 529 of the Public Acts of 1992, and chapter 856 of the Public Acts of 2002, respectively. (3) If, at the close of any fiscal year, the revenue from the tax is not sufficient to meet the total debt service of the eligible county, the municipality, or the industrial development corporation for indebtedness incurred with respect to the commercial development district, the balance, if any, of the debt service not paid by revenue from the tax at the end of the fiscal year shall be accumulated in a separate deficit account. If the revenue from the tax in any fiscal year exceeds the total of the debt service requirements of the commercial development district for that year, the surplus revenue thus accruing shall be retained by the eligible county, the municipality, or the industrial development corporation as a sinking fund for any future debt service requirements of the commercial development district or, alternatively, to reduce the then outstanding balance of the indebtedness.
(1) Notwithstanding the allocations provided for in § 67-6-103(a) , if real property located in an eligible county is acquired and developed as a commercial development district, and is certified by the commissioner of finance and administration as a commercial development district, then an amount shall be apportioned and distributed to the county, the municipality, or the industrial development corporation equal to the amount of state sales tax revenue derived from five and one-half percent (5.5%) of the tax rate imposed pursuant to § 67-6-202 on all sales in the commercial development district and the amount of local sales tax revenue not dedicated for school purposes pursuant to § 67-6-712(a)(1) derived from all sales in the commercial development district in excess of base tax revenues; provided, that an apportionment and distribution of such amount is authorized under this section for any commercial development district in which no sales and use taxes have been generated for at least five (5) years prior to the apportionment and distribution. Such amount distributed shall be for the exclusive use of the county, municipality or industrial development corporation and shall be used solely for the purpose of paying the indebtedness, principal and interest, and closing costs incurred by the county, municipality or industrial development corporation in financing the commercial development district. For eligible counties as defined in subdivision (b)(3)(A), the period for such distributions shall be twenty (20) years. For eligible counties as defined in subdivision (b)(3)(B) or (b)(3)(C), the commissioner of finance and administration shall determine the period in which distributions will be necessary to provide the financing hereunder, and the period for such distributions shall not exceed twenty (20) years. The distributions shall cease upon the expiration of the applicable distribution period or upon satisfaction of the financing of the commercial development district, whichever occurs first. Following the expiration of the distribution period, all amounts that would have otherwise been distributed to the county, the municipality, or the industrial development corporation shall be allocated as provided elsewhere without regard to this section.
(2) Notwithstanding any provision of this section to the contrary, no portion of the revenue derived from the increase in the rate of sales and use tax allocated to educational purposes pursuant to chapter 529, § 9 of the Public Acts of 1992, and no portion of the revenue derived from the increase in the rate of sales and use tax from six percent (6%) to seven percent (7%) contained in chapter 856, § 4 of the Public Acts of 2002, shall be distributed to the eligible county, the municipality or the industrial development corporation for the financing contemplated in this section. The revenue shall continue to be allocated as provided in chapter 529 of the Public Acts of 1992, and chapter 856 of the Public Acts of 2002, respectively.
(3) If, at the close of any fiscal year, the revenue from the tax is not sufficient to meet the total debt service of the eligible county, the municipality, or the industrial development corporation for indebtedness incurred with respect to the commercial development district, the balance, if any, of the debt service not paid by revenue from the tax at the end of the fiscal year shall be accumulated in a separate deficit account. If the revenue from the tax in any fiscal year exceeds the total of the debt service requirements of the commercial development district for that year, the surplus revenue thus accruing shall be retained by the eligible county, the municipality, or the industrial development corporation as a sinking fund for any future debt service requirements of the commercial development district or, alternatively, to reduce the then outstanding balance of the indebtedness.
(h) The apportionment and distribution of state sales and use taxes to the county, municipality, or industrial development corporation, as provided in this section shall commence at the beginning of the fiscal year after the certification of the commercial development district. The apportionment and payment shall be made by the department of revenue to the county, municipality or industrial development corporation within ninety (90) days of the end of each fiscal year for which the county, municipality or industrial development corporation is entitled to receive an allocation and payment pursuant to this chapter.
(i) The fact that an eligible county filed an application with the commissioner of finance and administration, whether an application was approved, the number of jobs created by a commercial development district, and the wages, salaries and other compensation that will be paid to the persons holding those jobs shall be available for public inspection pursuant to title 10, chapter 7. Any financial information, including, but not limited to, proprietary information and trade secrets contained in an application, or submitted with any accompanying documents or information filed with the application pursuant to this section, shall be confidential and shall not be open to the public for inspection, notwithstanding the public records provisions of title 10, chapter 7. Such financial information, proprietary information and trade secrets shall not be disclosed to any person, except that the commissioner of finance and administration is authorized to make the following disclosures: (1) Within the department of finance and administration, the department of revenue, and the department of economic and community development in the course of their official duties; and (2) To the comptroller of the treasury or the comptroller's designee for the purpose of an audit of the department of finance and administration, the department of revenue, or the department of economic and community development.
(1) Within the department of finance and administration, the department of revenue, and the department of economic and community development in the course of their official duties; and
(2) To the comptroller of the treasury or the comptroller's designee for the purpose of an audit of the department of finance and administration, the department of revenue, or the department of economic and community development.
(j) In addition to other powers and duties prescribed by law, the commissioner of finance and administration shall monitor the financing of commercial development districts pursuant to this section, but the transfer of sales and use tax revenues to pay indebtedness shall be vested with the eligible county, the municipality within the eligible county, or the industrial development corporation established by an eligible county or the municipality. The commissioner shall report annually to the finance, ways and means committees of the senate and the house of representatives, and the state and local government committee of the senate and the state government committee of the house of representatives, regarding each allocation of tax revenues pursuant to this section.
(k) The commissioner of finance and administration is authorized to require an eligible county with a commercial development district to file a report with the department of finance and administration. A report filed by an eligible county may include, but is not limited to, an analysis detailing the progress of the commercial development district, the number of jobs generated by the commercial development district, the wages, salaries and other compensation paid to those holding the jobs, and such additional information as requested by the commissioner of finance and administration.
(l) The department of finance and administration is authorized to promulgate rules and regulations to effectuate the purposes of this section. Such rules shall be promulgated in accordance with the Uniform Administrative Procedures Act, compiled in title 4, chapter 5.
(m) The tax revenue allocation available pursuant to this section applies to eligible counties or municipalities located in such eligible counties, or industrial development corporations established by such eligible counties or municipalities, that: (1) (A) In the case of property located in eligible counties as defined in subdivision (b)(3)(A), have filed an application with the commissioner of finance and administration prior to December 31, 2014; (B) In the case of property located in eligible counties as defined in subdivision (b)(3)(B), have filed an application with the commissioner of finance and administration on or after December 31, 2014, and prior to December 31, 2030; or (C) In the case of property located in eligible counties as defined in subdivision (b)(3)(C), have filed an application with the commissioner of finance and administration on or after January 1, 2021, and no later than December 31, 2026; and (2) Have received the approval of a commercial development district from the commissioner of finance and administration on or before June 30, 2031.
(1) (A) In the case of property located in eligible counties as defined in subdivision (b)(3)(A), have filed an application with the commissioner of finance and administration prior to December 31, 2014; (B) In the case of property located in eligible counties as defined in subdivision (b)(3)(B), have filed an application with the commissioner of finance and administration on or after December 31, 2014, and prior to December 31, 2030; or (C) In the case of property located in eligible counties as defined in subdivision (b)(3)(C), have filed an application with the commissioner of finance and administration on or after January 1, 2021, and no later than December 31, 2026; and
(A) In the case of property located in eligible counties as defined in subdivision (b)(3)(A), have filed an application with the commissioner of finance and administration prior to December 31, 2014;
(B) In the case of property located in eligible counties as defined in subdivision (b)(3)(B), have filed an application with the commissioner of finance and administration on or after December 31, 2014, and prior to December 31, 2030; or
(C) In the case of property located in eligible counties as defined in subdivision (b)(3)(C), have filed an application with the commissioner of finance and administration on or after January 1, 2021, and no later than December 31, 2026; and
(2) Have received the approval of a commercial development district from the commissioner of finance and administration on or before June 30, 2031.
Amended by 2024 Tenn. Acts, ch. 920,s 2, eff. 5/3/2024.
Amended by 2024 Tenn. Acts, ch. 920,s 1, eff. 5/3/2024.
Amended by 2022 Tenn. Acts, ch. 1006, Secs.s 1, s 2 eff. 5/5/2022.
Amended by 2021 Tenn. Acts, ch. 561, s 1, eff. 5/26/2021.
Amended by 2020 Tenn. Acts, ch. 809, Secs.s 1, s 2, s 3, s 4 eff. 7/15/2020.
Amended by 2018 Tenn. Acts, ch. 896, Secs.s 1, s 2 eff. 5/3/2018.
Added by 2014 Tenn. Acts, ch. 985,s 1, eff. 5/22/2014.
Tenn. Code Ann. § 67-5-1008 — TN Code / Title 67 / Chapter 5 / Section 67-5-1008
Present use valuation - Capitalization of income method - Rollback taxes - Involuntary conversion of use
Status: in_force

(a) When a parcel of land has been classified by the assessor of property as agricultural, forest, or open space land under this part, it shall be subsequently considered that its current use for agricultural or timber purposes or as open space used for neither of these purposes is its immediate most suitable economic use, and assessment shall be based upon its value in that current use, rather than on value for some other use as may be determined in accordance with part 6 of this chapter. It is the responsibility of the applicant to promptly notify the assessor of any change in the use or ownership of the property that might affect its eligibility under this part. (b) (1) After a parcel of land has been classified by the assessor of property as agricultural, forest, or open space land under this part, the assessor of property shall record it on a separate list for the classified property. The assessor may record with the register of deeds the application for the classification of the property. However, if the assessor does not record the application, then the property owner shall record with the register of deeds the application for the classification of the property. Any fees that may be required shall be paid by the property owner. (2) Henceforth, the assessor shall appraise the land and compute the taxes each year based upon both: (A) The twenty-five percent (25%) of appraised value applicable to property in the farm classification and present use value; and (B) Farm classification and value as determined under part 6 of this chapter, but taxes shall be assessed and paid only on the basis of farm classification and present use value under this part. (3) The taxes computed under part 6 of this chapter shall be used to compute the rollback taxes, as defined in § 67-5-1004 and as provided for in subsection (d). (4) The general assembly finds that value as determined under subdivision (b)(2)(B) should not be deemed the value of property for any purpose other than a future assessment of rollback taxes, because it does not determine the actual tax liability of a qualifying owner at the time of valuation. Accordingly, value as determined under subdivision (b)(2)(B) shall not be deemed determinative of fair market value for any purpose other than the administration of property taxes under this title. (c) (1) A parcel of land classified by the assessor as agricultural, forest or open space land under this part shall be valued by dividing three (3) into the sum of two (2) times the use value as defined in this subsection (c), plus the farm land value as defined in this subsection (c). The rate of increase in per acre present use values as determined under this subsection (c) shall not exceed a factor measured by the number of years since the last general reappraisal or updating of values in the county, times six percent (6%). (2) (A) Use value shall be determined by dividing: (i) The annual agricultural income estimate for such parcel as determined by the division of property tax assessment by; (ii) The capitalization rate as determined in subdivision (c)(2)(C). (B) For purposes of this part, "agricultural income estimate" means anticipated net return to land utilizing sound farming or forestry practices. In determining anticipated net return to land that is used for agricultural and forestry purposes, the division of property tax assessments shall consider farm income, or forestry income, soil productivity, topography, susceptibility to flooding, rental value and other factors that may serve to determine anticipated agricultural or forestry income. The annual agricultural income estimate for a parcel of open space land shall be the same as that for the least productive type of agricultural land. (C) The capitalization rate shall be the maximum allowable rate on loans for terms in excess of five (5) years guaranteed by the federal Farm Service Agency or its successor, as of the assessment date for the year in which the use value schedule is being developed. The rate may be adjusted by no more than one hundred (100) basis points to reflect differences in land classes within a jurisdiction. (3) Farm land value shall be determined by the division of property assessments based solely on farm-to-farm sales least influenced by commercial, industrial, residential, recreational or urban development, the potential for such development, or any other speculative factors. (4) The state board of equalization, upon petition by at least ten (10) owners of agricultural, forest or open space land, or upon petition of any organization representing ten (10) or more owners of agricultural, forest or open space land, shall convene a hearing to determine whether the capitalization rate has been properly determined by the division of property tax assessments, whether the agricultural income estimates determined by the division of property tax assessments are fair and reasonable, or if the farm land values have been determined in accordance with this section. Such hearing shall be held in accordance with the Uniform Administrative Procedures Act, compiled in title 4, chapter 5, part 3. The petition shall be filed at the office of the state board of equalization on or before twenty (20) days after the date the division of property assessments publishes notice of the availability of the proposed use value schedule in a newspaper of general circulation within the county. (d) (1) The appropriate assessor shall compute the amount of taxes saved by the difference in present use value assessment and value assessment under part 6 of this chapter, for each of the preceding three (3) years for agricultural and forest land, and for the preceding five (5) years for open space land, and the assessor shall notify the trustee that such amount is payable, if: (A) Such land ceases to qualify as agricultural land, forest land, or open space land as defined in § 67-5-1004 ; (B) The owner of such land requests in writing that the classification as agricultural land, forest land, or open space land be withdrawn; (C) The land is covered by a duly recorded subdivision plat or an unrecorded plan of development and any portion is being developed; except that, where a recorded plat or an unrecorded plan of development contains phases or sections, only the phases or sections being developed are disqualified; (D) An owner fails to file an application as required by this part; (E) The land exceeds the acreage limitations of § 67-5-1003(3) ; or (F) The land is conveyed or transferred and the conveyance or transfer would render the status of the land exempt. (2) When the tax rate for the most recent year of rollback taxes is not yet available, the assessor shall calculate the amount of taxes saved for the most recent year by using the last made assessment and rate fixed according to law, and the trustee shall accept tender of the amount determined to be owing. (3) The amount of tax savings calculated under this subsection (d) shall be the rollback taxes due as the result of disqualification or withdrawal of the land from classification under this part. Rollback taxes shall be payable from the date written notice is provided by the assessor, but shall not be delinquent until March 1 of the following year. When the assessor determines there is liability for rollback taxes, the assessor shall give written notice to the tax collecting official identifying the basis of the rollback taxes and the person the assessor finds to be responsible for payment, and the assessor shall provide a copy of the notice to the responsible person. Rollback taxes shall be a first lien on the disqualified property in the same manner as other property taxes, and shall also be a personal responsibility of the current owner or seller of the land as provided in this part. The assessor may void the rollback assessment, if it determined that the assessment was imposed in error. Liability for rollback taxes, but not property values, may be appealed to the state board of equalization by March 1 of the year following the notice by the assessor. However, property values fixing the amount of rollback taxes may only be appealed as otherwise provided by law. (4) (A) If, under subdivision (d)(1), only a portion of a parcel is subject to rollback taxes, the assessor of property shall apportion the assessment of such parcel on the first tax roll prepared after such taxes become payable, and enter the apportioned amount attributable to such portion as a separately assessed parcel on the tax roll. (B) Such apportionment shall be made for each of the years to which the rollback taxes apply. (e) (1) In the event that any land classified under this part as agricultural, forest, or open space land or any portion thereof is converted to a use other than those stipulated herein by virtue of a taking by eminent domain or other involuntary proceeding, except a tax sale, such land or any portion thereof involuntarily converted to such other use shall not be subject to rollback taxes by the landowner, and the agency or body doing the taking shall be liable for the rollback taxes. Property transferred and converted to an exempt or nonqualifying use shall be considered to have been converted involuntarily if the transferee or an agent for the transferee sought the transfer and had power of eminent domain. (2) In the event the land involuntarily converted to such other use constitutes only a portion of a parcel so classified on the assessment rolls, the assessor shall apportion the assessment and enter the portion involuntarily converted as a separately assessed parcel on the appropriate portion of the assessment roll. For as long as the landowner continues to own the remaining portion of such parcel and for as long as the landowner's lineal descendants collectively own at least fifty percent (50%) of the remaining portion of such parcel, the remaining portion so owned shall not be disqualified from use value classification under this part solely because it is made too small to qualify as the result of the involuntary proceeding. (3) In the event that any land classified under this part as agricultural, forest, or open space land or any portion thereof is acquired by a bank, as defined in § 45-2-107(a)(1)(A) , by a savings and loan association, as defined in § 45-3-104(a) , or by a holder of a deed of trust or mortgage in satisfaction or partial satisfaction of a debt previously contracted in good faith, such land or any portion thereof so acquired shall not be subject to rollback taxes assessed against or payable by the bank or savings and loan association, and shall be subject to rollback taxes, only if the land is used for a non-green belt purpose or after such land is sold by the bank, savings and loan association or a holder of a deed of trust or mortgage and then only as provided in subsection (d). This subdivision (e)(3) shall likewise apply to the temporary transfer of property classified under this part to a trustee in bankruptcy. (4) (A) If any property or any portion of the property classified under this part as agricultural, forest, or open space land is disqualified by a change in the law or as a result of an assessor's correction of a prior error of law or fact, then the property or any portion of the property that is disqualified shall not be assessable for rollback taxes. The property owner shall be liable for rollback taxes under these circumstances if the erroneous classification resulted from any fraud, deception, or intentional misrepresentation, misstatement, or omission of full statement by the property owner or the property owner's designee. (B) Nothing in this subdivision (e)(4) shall relieve a property owner of liability for rollback taxes if other disqualifying circumstances occur before the property has been assessed at market value for three (3) years. (f) If the sale of agricultural, forest or open space land will result in such property being disqualified as agricultural, forest or open space land due to conversion to an ineligible use or otherwise, the seller shall be liable for rollback taxes, unless otherwise provided by written contract. If the buyer declares in writing at the time of sale an intention to continue the greenbelt classification but fails to file any form necessary to continue the classification within ninety (90) days from the sale date, the rollback taxes shall become solely the responsibility of the buyer. (g) For purposes of valuation pursuant to this section, the maximum acreage available for any one (1) owner classified as forest or open space land under this part shall be three thousand (3,000) acres. This subsection (g) shall operate to change the classification of any such land in excess of three thousand (3,000) acres that has been so classified under this part prior to July 1, 1984. (h) Property passing to a lineal descendant of a deceased greenbelt owner, by reason of the death of the greenbelt owner, shall not be subject to rollback solely because the total greenbelt acreage of the new owner exceeds the maximum under § 67-5-1003 , or will exceed the maximum following the transfer. Property exceeding the limit in these circumstances shall be disqualified from greenbelt classification, but shall not be assessable for rollback unless other disqualifying circumstances occur before the property has been assessed at market value three (3) years. Amended by 2024 Tenn. Acts, ch. 978,s 2, eff. 5/21/2024, app. to tax years beginning on or after January 1, 2025. Amended by 2021 Tenn. Acts, ch. 383, s 4, eff. 5/11/2021. Amended by 2019 Tenn. Acts, ch. 322, s 1, eff. 5/8/2019. Amended by 2014 Tenn. Acts, ch. 589, s 1, eff. 1/1/2015. Amended by 2016 Tenn. Acts, ch. 685, s 1, eff. 3/24/2016. Acts 1976, ch. 782, § 8; 1979, ch. 149, §§ 1, 2; 1982, ch. 818, § 1; 1983, ch. 267, § 1; T.C.A., § 67-657; Acts 1987, ch. 279, §§ 1, 2, 4; 1992, ch. 661, §§ 8-12; 1995, ch. 459, §§ 1, 2; 1997 , ch. 160, § 1; 1998, ch. 683, § 1; 1999, ch. 141, § 6; 2001, ch. 152, §§ 4 - 7; 2002, ch. 632, §§ 2 - 5; 2006, ch. 861, § 2; 2008 , ch. 971, § 1; 2008 , ch. 1161, §§ 5, 6; 2010 , ch. 928, § 1; 2014 , ch. 589, § 1.
(a) When a parcel of land has been classified by the assessor of property as agricultural, forest, or open space land under this part, it shall be subsequently considered that its current use for agricultural or timber purposes or as open space used for neither of these purposes is its immediate most suitable economic use, and assessment shall be based upon its value in that current use, rather than on value for some other use as may be determined in accordance with part 6 of this chapter. It is the responsibility of the applicant to promptly notify the assessor of any change in the use or ownership of the property that might affect its eligibility under this part.
(b) (1) After a parcel of land has been classified by the assessor of property as agricultural, forest, or open space land under this part, the assessor of property shall record it on a separate list for the classified property. The assessor may record with the register of deeds the application for the classification of the property. However, if the assessor does not record the application, then the property owner shall record with the register of deeds the application for the classification of the property. Any fees that may be required shall be paid by the property owner. (2) Henceforth, the assessor shall appraise the land and compute the taxes each year based upon both: (A) The twenty-five percent (25%) of appraised value applicable to property in the farm classification and present use value; and (B) Farm classification and value as determined under part 6 of this chapter, but taxes shall be assessed and paid only on the basis of farm classification and present use value under this part. (3) The taxes computed under part 6 of this chapter shall be used to compute the rollback taxes, as defined in § 67-5-1004 and as provided for in subsection (d). (4) The general assembly finds that value as determined under subdivision (b)(2)(B) should not be deemed the value of property for any purpose other than a future assessment of rollback taxes, because it does not determine the actual tax liability of a qualifying owner at the time of valuation. Accordingly, value as determined under subdivision (b)(2)(B) shall not be deemed determinative of fair market value for any purpose other than the administration of property taxes under this title.
(1) After a parcel of land has been classified by the assessor of property as agricultural, forest, or open space land under this part, the assessor of property shall record it on a separate list for the classified property. The assessor may record with the register of deeds the application for the classification of the property. However, if the assessor does not record the application, then the property owner shall record with the register of deeds the application for the classification of the property. Any fees that may be required shall be paid by the property owner.
(2) Henceforth, the assessor shall appraise the land and compute the taxes each year based upon both: (A) The twenty-five percent (25%) of appraised value applicable to property in the farm classification and present use value; and (B) Farm classification and value as determined under part 6 of this chapter, but taxes shall be assessed and paid only on the basis of farm classification and present use value under this part.
(A) The twenty-five percent (25%) of appraised value applicable to property in the farm classification and present use value; and
(B) Farm classification and value as determined under part 6 of this chapter, but taxes shall be assessed and paid only on the basis of farm classification and present use value under this part.
(3) The taxes computed under part 6 of this chapter shall be used to compute the rollback taxes, as defined in § 67-5-1004 and as provided for in subsection (d).
(4) The general assembly finds that value as determined under subdivision (b)(2)(B) should not be deemed the value of property for any purpose other than a future assessment of rollback taxes, because it does not determine the actual tax liability of a qualifying owner at the time of valuation. Accordingly, value as determined under subdivision (b)(2)(B) shall not be deemed determinative of fair market value for any purpose other than the administration of property taxes under this title.
(c) (1) A parcel of land classified by the assessor as agricultural, forest or open space land under this part shall be valued by dividing three (3) into the sum of two (2) times the use value as defined in this subsection (c), plus the farm land value as defined in this subsection (c). The rate of increase in per acre present use values as determined under this subsection (c) shall not exceed a factor measured by the number of years since the last general reappraisal or updating of values in the county, times six percent (6%). (2) (A) Use value shall be determined by dividing: (i) The annual agricultural income estimate for such parcel as determined by the division of property tax assessment by; (ii) The capitalization rate as determined in subdivision (c)(2)(C). (B) For purposes of this part, "agricultural income estimate" means anticipated net return to land utilizing sound farming or forestry practices. In determining anticipated net return to land that is used for agricultural and forestry purposes, the division of property tax assessments shall consider farm income, or forestry income, soil productivity, topography, susceptibility to flooding, rental value and other factors that may serve to determine anticipated agricultural or forestry income. The annual agricultural income estimate for a parcel of open space land shall be the same as that for the least productive type of agricultural land. (C) The capitalization rate shall be the maximum allowable rate on loans for terms in excess of five (5) years guaranteed by the federal Farm Service Agency or its successor, as of the assessment date for the year in which the use value schedule is being developed. The rate may be adjusted by no more than one hundred (100) basis points to reflect differences in land classes within a jurisdiction. (3) Farm land value shall be determined by the division of property assessments based solely on farm-to-farm sales least influenced by commercial, industrial, residential, recreational or urban development, the potential for such development, or any other speculative factors. (4) The state board of equalization, upon petition by at least ten (10) owners of agricultural, forest or open space land, or upon petition of any organization representing ten (10) or more owners of agricultural, forest or open space land, shall convene a hearing to determine whether the capitalization rate has been properly determined by the division of property tax assessments, whether the agricultural income estimates determined by the division of property tax assessments are fair and reasonable, or if the farm land values have been determined in accordance with this section. Such hearing shall be held in accordance with the Uniform Administrative Procedures Act, compiled in title 4, chapter 5, part 3. The petition shall be filed at the office of the state board of equalization on or before twenty (20) days after the date the division of property assessments publishes notice of the availability of the proposed use value schedule in a newspaper of general circulation within the county.
(1) A parcel of land classified by the assessor as agricultural, forest or open space land under this part shall be valued by dividing three (3) into the sum of two (2) times the use value as defined in this subsection (c), plus the farm land value as defined in this subsection (c). The rate of increase in per acre present use values as determined under this subsection (c) shall not exceed a factor measured by the number of years since the last general reappraisal or updating of values in the county, times six percent (6%).
(2) (A) Use value shall be determined by dividing: (i) The annual agricultural income estimate for such parcel as determined by the division of property tax assessment by; (ii) The capitalization rate as determined in subdivision (c)(2)(C). (B) For purposes of this part, "agricultural income estimate" means anticipated net return to land utilizing sound farming or forestry practices. In determining anticipated net return to land that is used for agricultural and forestry purposes, the division of property tax assessments shall consider farm income, or forestry income, soil productivity, topography, susceptibility to flooding, rental value and other factors that may serve to determine anticipated agricultural or forestry income. The annual agricultural income estimate for a parcel of open space land shall be the same as that for the least productive type of agricultural land. (C) The capitalization rate shall be the maximum allowable rate on loans for terms in excess of five (5) years guaranteed by the federal Farm Service Agency or its successor, as of the assessment date for the year in which the use value schedule is being developed. The rate may be adjusted by no more than one hundred (100) basis points to reflect differences in land classes within a jurisdiction.
(A) Use value shall be determined by dividing: (i) The annual agricultural income estimate for such parcel as determined by the division of property tax assessment by; (ii) The capitalization rate as determined in subdivision (c)(2)(C).
(i) The annual agricultural income estimate for such parcel as determined by the division of property tax assessment by;
(ii) The capitalization rate as determined in subdivision (c)(2)(C).
(B) For purposes of this part, "agricultural income estimate" means anticipated net return to land utilizing sound farming or forestry practices. In determining anticipated net return to land that is used for agricultural and forestry purposes, the division of property tax assessments shall consider farm income, or forestry income, soil productivity, topography, susceptibility to flooding, rental value and other factors that may serve to determine anticipated agricultural or forestry income. The annual agricultural income estimate for a parcel of open space land shall be the same as that for the least productive type of agricultural land.
(C) The capitalization rate shall be the maximum allowable rate on loans for terms in excess of five (5) years guaranteed by the federal Farm Service Agency or its successor, as of the assessment date for the year in which the use value schedule is being developed. The rate may be adjusted by no more than one hundred (100) basis points to reflect differences in land classes within a jurisdiction.
(3) Farm land value shall be determined by the division of property assessments based solely on farm-to-farm sales least influenced by commercial, industrial, residential, recreational or urban development, the potential for such development, or any other speculative factors.
(4) The state board of equalization, upon petition by at least ten (10) owners of agricultural, forest or open space land, or upon petition of any organization representing ten (10) or more owners of agricultural, forest or open space land, shall convene a hearing to determine whether the capitalization rate has been properly determined by the division of property tax assessments, whether the agricultural income estimates determined by the division of property tax assessments are fair and reasonable, or if the farm land values have been determined in accordance with this section. Such hearing shall be held in accordance with the Uniform Administrative Procedures Act, compiled in title 4, chapter 5, part 3. The petition shall be filed at the office of the state board of equalization on or before twenty (20) days after the date the division of property assessments publishes notice of the availability of the proposed use value schedule in a newspaper of general circulation within the county.
(d) (1) The appropriate assessor shall compute the amount of taxes saved by the difference in present use value assessment and value assessment under part 6 of this chapter, for each of the preceding three (3) years for agricultural and forest land, and for the preceding five (5) years for open space land, and the assessor shall notify the trustee that such amount is payable, if: (A) Such land ceases to qualify as agricultural land, forest land, or open space land as defined in § 67-5-1004 ; (B) The owner of such land requests in writing that the classification as agricultural land, forest land, or open space land be withdrawn; (C) The land is covered by a duly recorded subdivision plat or an unrecorded plan of development and any portion is being developed; except that, where a recorded plat or an unrecorded plan of development contains phases or sections, only the phases or sections being developed are disqualified; (D) An owner fails to file an application as required by this part; (E) The land exceeds the acreage limitations of § 67-5-1003(3) ; or (F) The land is conveyed or transferred and the conveyance or transfer would render the status of the land exempt. (2) When the tax rate for the most recent year of rollback taxes is not yet available, the assessor shall calculate the amount of taxes saved for the most recent year by using the last made assessment and rate fixed according to law, and the trustee shall accept tender of the amount determined to be owing. (3) The amount of tax savings calculated under this subsection (d) shall be the rollback taxes due as the result of disqualification or withdrawal of the land from classification under this part. Rollback taxes shall be payable from the date written notice is provided by the assessor, but shall not be delinquent until March 1 of the following year. When the assessor determines there is liability for rollback taxes, the assessor shall give written notice to the tax collecting official identifying the basis of the rollback taxes and the person the assessor finds to be responsible for payment, and the assessor shall provide a copy of the notice to the responsible person. Rollback taxes shall be a first lien on the disqualified property in the same manner as other property taxes, and shall also be a personal responsibility of the current owner or seller of the land as provided in this part. The assessor may void the rollback assessment, if it determined that the assessment was imposed in error. Liability for rollback taxes, but not property values, may be appealed to the state board of equalization by March 1 of the year following the notice by the assessor. However, property values fixing the amount of rollback taxes may only be appealed as otherwise provided by law. (4) (A) If, under subdivision (d)(1), only a portion of a parcel is subject to rollback taxes, the assessor of property shall apportion the assessment of such parcel on the first tax roll prepared after such taxes become payable, and enter the apportioned amount attributable to such portion as a separately assessed parcel on the tax roll. (B) Such apportionment shall be made for each of the years to which the rollback taxes apply.
(1) The appropriate assessor shall compute the amount of taxes saved by the difference in present use value assessment and value assessment under part 6 of this chapter, for each of the preceding three (3) years for agricultural and forest land, and for the preceding five (5) years for open space land, and the assessor shall notify the trustee that such amount is payable, if: (A) Such land ceases to qualify as agricultural land, forest land, or open space land as defined in § 67-5-1004 ; (B) The owner of such land requests in writing that the classification as agricultural land, forest land, or open space land be withdrawn; (C) The land is covered by a duly recorded subdivision plat or an unrecorded plan of development and any portion is being developed; except that, where a recorded plat or an unrecorded plan of development contains phases or sections, only the phases or sections being developed are disqualified; (D) An owner fails to file an application as required by this part; (E) The land exceeds the acreage limitations of § 67-5-1003(3) ; or (F) The land is conveyed or transferred and the conveyance or transfer would render the status of the land exempt.
(A) Such land ceases to qualify as agricultural land, forest land, or open space land as defined in § 67-5-1004 ;
(B) The owner of such land requests in writing that the classification as agricultural land, forest land, or open space land be withdrawn;
(C) The land is covered by a duly recorded subdivision plat or an unrecorded plan of development and any portion is being developed; except that, where a recorded plat or an unrecorded plan of development contains phases or sections, only the phases or sections being developed are disqualified;
(D) An owner fails to file an application as required by this part;
(E) The land exceeds the acreage limitations of § 67-5-1003(3) ; or
(F) The land is conveyed or transferred and the conveyance or transfer would render the status of the land exempt.
(2) When the tax rate for the most recent year of rollback taxes is not yet available, the assessor shall calculate the amount of taxes saved for the most recent year by using the last made assessment and rate fixed according to law, and the trustee shall accept tender of the amount determined to be owing.
(3) The amount of tax savings calculated under this subsection (d) shall be the rollback taxes due as the result of disqualification or withdrawal of the land from classification under this part. Rollback taxes shall be payable from the date written notice is provided by the assessor, but shall not be delinquent until March 1 of the following year. When the assessor determines there is liability for rollback taxes, the assessor shall give written notice to the tax collecting official identifying the basis of the rollback taxes and the person the assessor finds to be responsible for payment, and the assessor shall provide a copy of the notice to the responsible person. Rollback taxes shall be a first lien on the disqualified property in the same manner as other property taxes, and shall also be a personal responsibility of the current owner or seller of the land as provided in this part. The assessor may void the rollback assessment, if it determined that the assessment was imposed in error. Liability for rollback taxes, but not property values, may be appealed to the state board of equalization by March 1 of the year following the notice by the assessor. However, property values fixing the amount of rollback taxes may only be appealed as otherwise provided by law.
(4) (A) If, under subdivision (d)(1), only a portion of a parcel is subject to rollback taxes, the assessor of property shall apportion the assessment of such parcel on the first tax roll prepared after such taxes become payable, and enter the apportioned amount attributable to such portion as a separately assessed parcel on the tax roll. (B) Such apportionment shall be made for each of the years to which the rollback taxes apply.
(A) If, under subdivision (d)(1), only a portion of a parcel is subject to rollback taxes, the assessor of property shall apportion the assessment of such parcel on the first tax roll prepared after such taxes become payable, and enter the apportioned amount attributable to such portion as a separately assessed parcel on the tax roll.
(B) Such apportionment shall be made for each of the years to which the rollback taxes apply.
(e) (1) In the event that any land classified under this part as agricultural, forest, or open space land or any portion thereof is converted to a use other than those stipulated herein by virtue of a taking by eminent domain or other involuntary proceeding, except a tax sale, such land or any portion thereof involuntarily converted to such other use shall not be subject to rollback taxes by the landowner, and the agency or body doing the taking shall be liable for the rollback taxes. Property transferred and converted to an exempt or nonqualifying use shall be considered to have been converted involuntarily if the transferee or an agent for the transferee sought the transfer and had power of eminent domain. (2) In the event the land involuntarily converted to such other use constitutes only a portion of a parcel so classified on the assessment rolls, the assessor shall apportion the assessment and enter the portion involuntarily converted as a separately assessed parcel on the appropriate portion of the assessment roll. For as long as the landowner continues to own the remaining portion of such parcel and for as long as the landowner's lineal descendants collectively own at least fifty percent (50%) of the remaining portion of such parcel, the remaining portion so owned shall not be disqualified from use value classification under this part solely because it is made too small to qualify as the result of the involuntary proceeding. (3) In the event that any land classified under this part as agricultural, forest, or open space land or any portion thereof is acquired by a bank, as defined in § 45-2-107(a)(1)(A) , by a savings and loan association, as defined in § 45-3-104(a) , or by a holder of a deed of trust or mortgage in satisfaction or partial satisfaction of a debt previously contracted in good faith, such land or any portion thereof so acquired shall not be subject to rollback taxes assessed against or payable by the bank or savings and loan association, and shall be subject to rollback taxes, only if the land is used for a non-green belt purpose or after such land is sold by the bank, savings and loan association or a holder of a deed of trust or mortgage and then only as provided in subsection (d). This subdivision (e)(3) shall likewise apply to the temporary transfer of property classified under this part to a trustee in bankruptcy. (4) (A) If any property or any portion of the property classified under this part as agricultural, forest, or open space land is disqualified by a change in the law or as a result of an assessor's correction of a prior error of law or fact, then the property or any portion of the property that is disqualified shall not be assessable for rollback taxes. The property owner shall be liable for rollback taxes under these circumstances if the erroneous classification resulted from any fraud, deception, or intentional misrepresentation, misstatement, or omission of full statement by the property owner or the property owner's designee. (B) Nothing in this subdivision (e)(4) shall relieve a property owner of liability for rollback taxes if other disqualifying circumstances occur before the property has been assessed at market value for three (3) years.
(1) In the event that any land classified under this part as agricultural, forest, or open space land or any portion thereof is converted to a use other than those stipulated herein by virtue of a taking by eminent domain or other involuntary proceeding, except a tax sale, such land or any portion thereof involuntarily converted to such other use shall not be subject to rollback taxes by the landowner, and the agency or body doing the taking shall be liable for the rollback taxes. Property transferred and converted to an exempt or nonqualifying use shall be considered to have been converted involuntarily if the transferee or an agent for the transferee sought the transfer and had power of eminent domain.
(2) In the event the land involuntarily converted to such other use constitutes only a portion of a parcel so classified on the assessment rolls, the assessor shall apportion the assessment and enter the portion involuntarily converted as a separately assessed parcel on the appropriate portion of the assessment roll. For as long as the landowner continues to own the remaining portion of such parcel and for as long as the landowner's lineal descendants collectively own at least fifty percent (50%) of the remaining portion of such parcel, the remaining portion so owned shall not be disqualified from use value classification under this part solely because it is made too small to qualify as the result of the involuntary proceeding.
(3) In the event that any land classified under this part as agricultural, forest, or open space land or any portion thereof is acquired by a bank, as defined in § 45-2-107(a)(1)(A) , by a savings and loan association, as defined in § 45-3-104(a) , or by a holder of a deed of trust or mortgage in satisfaction or partial satisfaction of a debt previously contracted in good faith, such land or any portion thereof so acquired shall not be subject to rollback taxes assessed against or payable by the bank or savings and loan association, and shall be subject to rollback taxes, only if the land is used for a non-green belt purpose or after such land is sold by the bank, savings and loan association or a holder of a deed of trust or mortgage and then only as provided in subsection (d). This subdivision (e)(3) shall likewise apply to the temporary transfer of property classified under this part to a trustee in bankruptcy.
(4) (A) If any property or any portion of the property classified under this part as agricultural, forest, or open space land is disqualified by a change in the law or as a result of an assessor's correction of a prior error of law or fact, then the property or any portion of the property that is disqualified shall not be assessable for rollback taxes. The property owner shall be liable for rollback taxes under these circumstances if the erroneous classification resulted from any fraud, deception, or intentional misrepresentation, misstatement, or omission of full statement by the property owner or the property owner's designee. (B) Nothing in this subdivision (e)(4) shall relieve a property owner of liability for rollback taxes if other disqualifying circumstances occur before the property has been assessed at market value for three (3) years.
(A) If any property or any portion of the property classified under this part as agricultural, forest, or open space land is disqualified by a change in the law or as a result of an assessor's correction of a prior error of law or fact, then the property or any portion of the property that is disqualified shall not be assessable for rollback taxes. The property owner shall be liable for rollback taxes under these circumstances if the erroneous classification resulted from any fraud, deception, or intentional misrepresentation, misstatement, or omission of full statement by the property owner or the property owner's designee.
(B) Nothing in this subdivision (e)(4) shall relieve a property owner of liability for rollback taxes if other disqualifying circumstances occur before the property has been assessed at market value for three (3) years.
(f) If the sale of agricultural, forest or open space land will result in such property being disqualified as agricultural, forest or open space land due to conversion to an ineligible use or otherwise, the seller shall be liable for rollback taxes, unless otherwise provided by written contract. If the buyer declares in writing at the time of sale an intention to continue the greenbelt classification but fails to file any form necessary to continue the classification within ninety (90) days from the sale date, the rollback taxes shall become solely the responsibility of the buyer.
(g) For purposes of valuation pursuant to this section, the maximum acreage available for any one (1) owner classified as forest or open space land under this part shall be three thousand (3,000) acres. This subsection (g) shall operate to change the classification of any such land in excess of three thousand (3,000) acres that has been so classified under this part prior to July 1, 1984.
(h) Property passing to a lineal descendant of a deceased greenbelt owner, by reason of the death of the greenbelt owner, shall not be subject to rollback solely because the total greenbelt acreage of the new owner exceeds the maximum under § 67-5-1003 , or will exceed the maximum following the transfer. Property exceeding the limit in these circumstances shall be disqualified from greenbelt classification, but shall not be assessable for rollback unless other disqualifying circumstances occur before the property has been assessed at market value three (3) years.
Amended by 2024 Tenn. Acts, ch. 978,s 2, eff. 5/21/2024, app. to tax years beginning on or after January 1, 2025.
Amended by 2021 Tenn. Acts, ch. 383, s 4, eff. 5/11/2021.
Amended by 2019 Tenn. Acts, ch. 322, s 1, eff. 5/8/2019.
Amended by 2014 Tenn. Acts, ch. 589, s 1, eff. 1/1/2015.
Amended by 2016 Tenn. Acts, ch. 685, s 1, eff. 3/24/2016.
Acts 1976, ch. 782, § 8; 1979, ch. 149, §§ 1, 2; 1982, ch. 818, § 1; 1983, ch. 267, § 1; T.C.A., § 67-657; Acts 1987, ch. 279, §§ 1, 2, 4; 1992, ch. 661, §§ 8-12; 1995, ch. 459, §§ 1, 2; 1997 , ch. 160, § 1; 1998, ch. 683, § 1; 1999, ch. 141, § 6; 2001, ch. 152, §§ 4 - 7; 2002, ch. 632, §§ 2 - 5; 2006, ch. 861, § 2; 2008 , ch. 971, § 1; 2008 , ch. 1161, §§ 5, 6; 2010 , ch. 928, § 1; 2014 , ch. 589, § 1.
Tenn. Code Ann. § 67-3-902 — TN Code / Title 67 / Chapter 3 / Section 67-3-902
Investment of idle funds from 1986 gasoline tax increases
Status: in_force

All funds from the increase in taxes imposed by chapter 931 of the Acts of 1986, and allocated to the state highway fund shall be placed in a separate account and, to the extent not required for the projects provided for in chapter 931 of the Acts of 1986, shall be invested pursuant to § 9-4-603 , with the investment income credited to the highway fund. Acts 1997, ch. 316, § 1; T.C.A., § 67-3-2002.
All funds from the increase in taxes imposed by chapter 931 of the Acts of 1986, and allocated to the state highway fund shall be placed in a separate account and, to the extent not required for the projects provided for in chapter 931 of the Acts of 1986, shall be invested pursuant to § 9-4-603 , with the investment income credited to the highway fund.
Acts 1997, ch. 316, § 1; T.C.A., § 67-3-2002.
Tenn. Code Ann. § 67-1-601 — TN Code / Title 67 / Chapter 1 / Section 67-1-601
Counties may impose taxes
Status: in_force

A county legislative body may impose taxes for county purposes, and fix the rate of taxation, at its first session every year; and, if the legislative body omits such duty at the first session, it shall perform it at any subsequent quarterly session. Code 1858, § 489 (deriv. Acts 1837-1838, ch. 135, § 2); Shan., § 649; Code 1932, § 1048; impl. am. Acts 1978, ch. 934, §§ 7, 36; T.C.A. (orig. ed.), § 67-1005.
A county legislative body may impose taxes for county purposes, and fix the rate of taxation, at its first session every year; and, if the legislative body omits such duty at the first session, it shall perform it at any subsequent quarterly session.
Code 1858, § 489 (deriv. Acts 1837-1838, ch. 135, § 2); Shan., § 649; Code 1932, § 1048; impl. am. Acts 1978, ch. 934, §§ 7, 36; T.C.A. (orig. ed.), § 67-1005.
Tenn. Code Ann. § 67-6-307 — TN Code / Title 67 / Chapter 6 / Section 67-6-307
Energy or resource recovery facilities
Status: in_force

There is excluded from the sales and use tax base that portion of the consideration, received from the sale of steam produced by an energy or resource recovery facility owned or operated by a municipality, that is used to satisfy an indebtedness to the state incurred pursuant to [former] title 68, chapter 211, part 4 [repealed]. This exclusion shall only apply if the facility has no more than one (1) customer, and the portion of the consideration subject to the exclusion is separately stated on each billing. In the event ownership of the facility is transferred to the facility's sole customer, that portion of the consideration previously excluded from taxation shall be taxable to the customer. Acts 1947, ch. 3, § 6; 1949, ch. 245, § 2; C. Supp. 1950, § 1248.61 (Williams, § 1328.27); Acts 1955, ch. 51, § 6; 1955, ch. 194, § 1; 1955, ch. 340, §§ 1, 2; 1961, ch. 248, § 1; 1963, ch. 38, § 4; 1963, ch. 112, § 1; 1963, ch. 137, § 1; 1963, ch. 268, § 1; 1965, ch. 32, § 1; 1965, ch. 164, § 1; 1967, ch. 98, § 1; 1969, ch. 2, § 1; 1971, ch. 39, § 1; 1971, ch. 113, § 1; 1971, ch. 258, § 1; 1973, ch. 173, § 1; 1976, ch. 466, § 2; 1976, ch. 524, § 1; 1976, ch. 689, § 1; 1976, ch. 711, § 1; 1976, ch 733, § 1; 1977, ch. 79, § 1; 1977, ch. 150, § 1; 1977, ch. 268, § 1; 1977, ch. 487, § 1; 1978, ch. 732, § 1; 1978, ch. 733, § 1; impl. am. Acts 1978, ch. 761, § 116; Acts 1978, ch. 793, § 1; 1978, ch. 831, § 1; 1978, ch. 832, § 1; 1978, ch. 921, § 4; 1979, ch. 191, § 1; 1979, ch. 239, § 1; 1979, ch. 330, § 1; 1979, ch. 338, § 1; 1979, ch. 349, § 1; 1979, ch. 387, § 1; 1979, ch. 391, §§ 1, 2; 1980, ch. 613, § 1; 1980, ch. 748, § 1; 1980, ch. 863, § 1; 1981, ch. 70, § 1; 1981, ch. 133, § 1; 1981, ch. 273, § 1; 1982, ch. 576, § 1; 1982, ch. 634, § 1; 1983, ch. 102, § 3; 1983, ch. 140, § 1; 1983, ch. 162, § 2; T.C.A. (orig. ed.), § 67-3012.
There is excluded from the sales and use tax base that portion of the consideration, received from the sale of steam produced by an energy or resource recovery facility owned or operated by a municipality, that is used to satisfy an indebtedness to the state incurred pursuant to [former] title 68, chapter 211, part 4 [repealed]. This exclusion shall only apply if the facility has no more than one (1) customer, and the portion of the consideration subject to the exclusion is separately stated on each billing. In the event ownership of the facility is transferred to the facility's sole customer, that portion of the consideration previously excluded from taxation shall be taxable to the customer.
Acts 1947, ch. 3, § 6; 1949, ch. 245, § 2; C. Supp. 1950, § 1248.61 (Williams, § 1328.27); Acts 1955, ch. 51, § 6; 1955, ch. 194, § 1; 1955, ch. 340, §§ 1, 2; 1961, ch. 248, § 1; 1963, ch. 38, § 4; 1963, ch. 112, § 1; 1963, ch. 137, § 1; 1963, ch. 268, § 1; 1965, ch. 32, § 1; 1965, ch. 164, § 1; 1967, ch. 98, § 1; 1969, ch. 2, § 1; 1971, ch. 39, § 1; 1971, ch. 113, § 1; 1971, ch. 258, § 1; 1973, ch. 173, § 1; 1976, ch. 466, § 2; 1976, ch. 524, § 1; 1976, ch. 689, § 1; 1976, ch. 711, § 1; 1976, ch 733, § 1; 1977, ch. 79, § 1; 1977, ch. 150, § 1; 1977, ch. 268, § 1; 1977, ch. 487, § 1; 1978, ch. 732, § 1; 1978, ch. 733, § 1; impl. am. Acts 1978, ch. 761, § 116; Acts 1978, ch. 793, § 1; 1978, ch. 831, § 1; 1978, ch. 832, § 1; 1978, ch. 921, § 4; 1979, ch. 191, § 1; 1979, ch. 239, § 1; 1979, ch. 330, § 1; 1979, ch. 338, § 1; 1979, ch. 349, § 1; 1979, ch. 387, § 1; 1979, ch. 391, §§ 1, 2; 1980, ch. 613, § 1; 1980, ch. 748, § 1; 1980, ch. 863, § 1; 1981, ch. 70, § 1; 1981, ch. 133, § 1; 1981, ch. 273, § 1; 1982, ch. 576, § 1; 1982, ch. 634, § 1; 1983, ch. 102, § 3; 1983, ch. 140, § 1; 1983, ch. 162, § 2; T.C.A. (orig. ed.), § 67-3012.