Tenn. Code Ann. § 67-4-2012 — TN Code / Title 67 / Chapter 4 / Section 67-4-2012
Apportionment formula
Status: in_force

(a) (1) Except as otherwise provided in this part, for tax years beginning prior to July 1, 2016, all net earnings shall be apportioned to this state by multiplying the earnings by a fraction, the numerator of which shall be the property factor plus the payroll factor plus twice the receipts factor, and the denominator of the fraction shall be four (4). (2) Except as otherwise provided in this part, for tax years beginning on or after July 1, 2016, all net earnings shall be apportioned to this state by multiplying the earnings by a fraction, the numerator of which shall be the property factor plus the payroll factor plus three (3) times the receipts factor, and the denominator of the fraction shall be five (5). (3) Except as otherwise provided in this part, for tax years ending on or after December 31, 2023, but before December 31, 2024, net earnings must be apportioned to this state by multiplying the earnings by a fraction, the numerator of which is the property factor plus the payroll factor plus five (5) times the receipts factor, and the denominator of the fraction is seven (7). (4) Except as otherwise provided in this part, for tax years ending on or after December 31, 2024, but before December 31, 2025, net earnings must be apportioned to this state by multiplying the earnings by a fraction, the numerator of which is the property factor plus the payroll factor plus eleven (11) times the receipts factor, and the denominator of the fraction is thirteen (13). (5) Except as otherwise provided in this part, for tax years ending on or after December 31, 2025, net earnings must be apportioned to this state by multiplying the earnings by the receipts factor only. (6) If the application of subdivision (a)(3), (a)(4), or (a)(5) to a tax year results in a lower apportionment ratio than under the application of the apportionment method in subdivision (a)(2) as it applied to tax years ending before December 31, 2023, then a taxpayer may annually elect to apply the apportionment method in subdivision (a)(2) as it applied to tax years ending before December 31, 2023; provided, however, the election must result in a higher apportionment ratio for the tax year, and the taxpayer must have net earnings, rather than a net loss, for that tax year as computed under § 67-4-2006 . (7) Notwithstanding subdivisions (a)(3) - (a)(6), for tax years ending on or after December 31, 2023, net earnings for a "qualified member" of a "qualified group," as those terms are defined in subsection (j), must be apportioned to this state by multiplying he earnings by a fraction, the numerator of which is the property factor plus the payroll factor plus three (3) times the receipts factor, and the denominator of the fraction is five (5). (b) The property factor is a fraction, the numerator of which is the average value of the taxpayer's real and tangible personal property owned or rented and used in this state during the tax period, and the denominator of which is the average value of all the taxpayer's real and tangible personal property owned or rented and used during the tax period. For this purpose, "property" includes a taxpayer's ownership share of the real or tangible property owned or rented by any general partnership, or entity treated as a general partnership for federal income tax purposes, in which such taxpayer has an ownership interest. A return being filed by a limited liability company that has a general partnership as its single member shall include in its property factor only the real and tangible property owned or used by the limited liability company. "Property" also includes a taxpayer's ownership share of the real or tangible property owned or rented by any limited partnership, subchapter S corporation, limited liability company or other entity treated as a partnership for federal income tax purposes, in which the taxpayer has an ownership interest, directly or indirectly through one (1) or more such entities, and that is not doing business in Tennessee and, therefore, is not subject to Tennessee excise tax. The cost value or rental value of such property shall be determined from the books and records of the entity in which the taxpayer has an interest and such property shall be valued in accordance with subsection (c). (c) (1) Property owned by the taxpayer is valued at its original cost. Property rented by the taxpayer is valued at eight (8) times the net annual rental rate. Net annual rental rate is the annual rental rate paid by the taxpayer less any annual rental rate received by the taxpayer from subrentals. A lessee's payments to a lessor, or on such lessor's behalf, as part of rent, or in lieu of rent, shall be included as rent in the property factor of the apportionment formula provided by this section. Except with respect to tangible personal property, for purposes of this subsection (c), payments, such as interest, taxes, insurance, repairs or other items, shall be treated as rent paid by the lessee, if they would have been paid by the lessor if the lease contract or other agreement had not specifically provided that they be paid by the lessee. (2) For purposes of this section, the value of owned or leased mobile or movable property located both inside and outside of the state of Tennessee during a tax period shall be determined on the basis of the total percentage of time such property is inside the state during the tax period; provided, that the value of an automobile or truck assigned to a traveling employee shall be considered in Tennessee, if the employee's compensation is assigned to Tennessee for purposes of the taxpayer's apportionment formula payroll factor, or if such vehicle is licensed in Tennessee. (d) The average value of property shall be determined by averaging the values at the beginning and ending of the tax period; but the commissioner may require the averaging of monthly values during the tax period, if reasonably required to reflect properly the average value of the taxpayer's property. (e) The payroll factor is a fraction, the numerator of which is the total amount paid in this state during the tax period by the taxpayer for compensation, and the denominator of which is the total compensation paid everywhere during the tax period. For this purpose, "compensation" includes a taxpayer's ownership share of the compensation of any general partnership, or entity treated as a general partnership for federal income tax purposes, in which such taxpayer has an ownership interest. A return being filed by a limited liability company that has a general partnership as its single member shall include in its payroll factor only the compensation attributed to the limited liability company. "Compensation" also includes a taxpayer's share of any specific compensation of any limited partnership, subchapter S corporation, limited liability company or other entity treated as a partnership for federal income tax purposes, in which the taxpayer has an ownership interest, directly or indirectly through one (1) or more such entities, and which is not doing business in Tennessee and thus is not subject to Tennessee excise tax. (f) Compensation is paid in this state, if: (1) The individual's service is performed entirely inside the state; (2) The individual's service is performed both inside and outside the state, but the service performed outside the state is incidental to the individual's service inside the state; or (3) Some of the service is performed in the state; and (A) The base of operations or, if there is no base of operations, the place from which the service is directed or controlled is in the state; or (B) The base of operations or the place from which the service is directed or controlled is not in any state in which some part of the service is performed, but the individual's residence is in this state. (g) The receipts factor is a fraction, the numerator of which is the total receipts of the taxpayer in this state during the tax period, and the denominator of which is the total receipts of the taxpayer everywhere during the tax period. For this purpose, "gross receipts" includes a taxpayer's ownership share of the gross receipts of any general partnership, or entity treated as a general partnership for federal income tax purposes, in which such taxpayer has an ownership interest. A return being filed by a limited liability company that has a general partnership as its single member shall include in its receipts factor only the gross receipts attributed to the limited liability company. "Gross receipts" also includes a taxpayer's ownership share of gross receipts of any limited partnership, subchapter S corporation, limited liability company, or other entity treated as a partnership for federal income tax purposes, in which the taxpayer has an ownership interest, directly or indirectly through one (1) or more such entities, and that is not doing business in Tennessee and thus is not subject to Tennessee excise tax. (h) Sales of tangible personal property are in this state, if: (1) The property is delivered or shipped to a purchaser, other than the United States government, inside this state regardless of the F.O.B. point or other conditions of the sale; or (2) The property is shipped from an office, store, warehouse, factory or other place of storage in this state and the purchaser is the United States government. (i) (1) Sales, other than sales of tangible personal property, are in this state if the taxpayer's market for the sale is in this state. The taxpayer's market for a sale is in this state: (A) In the case of sale, rental, lease, or license of real property, if and to the extent the property is located in this state; (B) In the case of rental, lease, or license of tangible personal property, if and to the extent the property is located in this state; (C) In the case of sale of a service, if and to the extent the service is delivered to a location in this state; (D) In the case of intangible property: (i) That is rented, leased, or licensed, if and to the extent the intangible property is used in this state; provided, that intangible property utilized in marketing a good or service to a consumer is considered used in this state if that good or service is purchased by a consumer who is in this state; and (ii) That is sold, if and to the extent the property is used in this state; provided, that: (a) A contract right, government license, or similar intangible property that authorizes the holder to conduct a business activity in a specific geographic area is considered used in this state if the geographic area includes all or part of this state; (b) Receipts from intangible property sales that are contingent on the productivity, use, or disposition of the intangible property shall be treated as receipts from the rental, lease, or licensing of such intangible property under subdivision (i)(1)(D)(i); and (c) All other receipts from a sale of intangible property shall be excluded from the numerator and denominator of the receipts factor. (2) If the state or states of assignment under subdivision (i)(1) cannot be determined, the state or states of assignment shall be reasonably approximated. (3) If the state of assignment cannot be determined under subdivision (i)(1) or reasonably approximated under subdivision (i)(2), such sale shall be excluded from the numerator and denominator of the sales factor. (4) If the application of this subsection (i) to a tax year results in a lower apportionment factor than under the application of the apportionment method in subsection (i) as it was in effect prior to January 1, 2016, then a taxpayer may annually elect to apply the apportionment method in subsection (i) as in effect prior to January 1, 2016; provided, however, the election must result in a higher apportionment factor for the tax year, and the taxpayer must have net earnings, rather than a net loss, for that tax year as computed under § 67-4-2006 . (j) (1) For any qualified member of a qualified group, total receipts in this state shall equal the receipts from all sales of tangible personal property that are in this state as determined under subsection (h), plus the arithmetical average of the receipts from all sales other than sales of tangible personal property that are in this state as determined under each of the following alternative methods: (A) All sales that are in this state as determined under subsection (i); and (B) All sales, other than sales of tangible personal property, where the earnings-producing activity is performed: (i) In this state; or (ii) Both in and outside this state and a greater proportion of the earnings-producing activity is performed in this state than in any other state, based on costs of performance. (2) For purposes of this subsection (j), the following definitions shall apply: (A) "Qualified expenditures" means expenditures incurred in transactions with persons who are not members of the qualified group for the following: (i) Purchasing tangible personal property placed in service in this state by a member of the qualified group; and (ii) Payroll for employees employed by a member of the qualified group at a facility in this state; (B) "Qualified group" means an affiliated group that meets both of the following criteria: (i) One (1) or more members of the group is a qualified member; and (ii) The members of the group, during the tax period, either: (a) Incur, in the aggregate, qualified expenditures in an amount greater than one hundred fifty million dollars ($150,000,000); or (b) Make sales that are subject to the tax imposed by chapter 6 of this title in excess of one hundred fifty million dollars ($150,000,000); (C) "Qualified member" means a person that is principally engaged in the sale of "telecommunications service," "mobile telecommunications service," "internet access service," "video programming service," "direct-to-home satellite television programming service," or a combination of such services, as each such term is used or defined in chapter 6 of this title. (3) The method provided by this subsection (j) for determining the total receipts in this state of a qualified member shall be the only method for determining such receipts under this part. (k) Notwithstanding any provision of this section to the contrary, any gain on the sale of an asset that is designated as goodwill and is required to be included as Class VII assets pursuant to the reporting requirements of 26 U.S.C. §§ 338(b)(5) and 1060 , and associated regulations, shall be excluded from both the numerator and the denominator of the apportionment formula receipts factor. (l) [Repealed effective December 31, 2025; see (l)(5).] (1) A taxpayer whose principal business in Tennessee is manufacturing may elect to apportion net earnings to this state by multiplying the earnings by a fraction, the numerator of which is the total receipts of the taxpayer in Tennessee during the taxable year and the denominator of which is the total receipts of the taxpayer from any location within or outside of the state during the taxable year. (2) For purposes of this subsection ( l ), a taxpayer's principal business in Tennessee is manufacturing if more than fifty percent (50%) of the revenue derived from its activities in this state, excluding passive income, is from fabricating or processing tangible personal property for resale and consumption off the premises. For purposes of this subsection ( l ), "passive income" means dividend income, interest income, income derived from the sale of securities, and income derived from the licensing or sale of patents, trademarks, tradenames, copyrights, know-how, or other intellectual property. (3) To elect the method of apportionment provided in this subsection ( l ), the taxpayer shall notify the department of the election, in writing, on its return for the taxable year to which the election applies. (4) Once a taxpayer elects the method of apportionment provided in this subsection ( l ), such election shall remain in effect for a minimum of five (5) tax years and thereafter until revoked. The taxpayer may revoke the election after the minimum period by notifying the department of the revocation, in writing, on its return for the first taxable year to which the revocation applies. A taxpayer that revokes the election shall not be permitted to newly elect the method of apportionment provided in this subsection ( l ) for a period of five (5) tax years, beginning with the tax year in which the taxpayer revoked the previous election. (5) This subsection ( l ) is repealed for tax years ending on or after December 31, 2025. (m) [Repealed effective December 31, 2025; see (m)(5).] (1) Notwithstanding any other provision of this part, a financial asset management company may elect to apportion net earnings by multiplying such earnings by a fraction, the numerator of which is the total receipts of the taxpayer in Tennessee during the taxable year as determined under this section and the denominator of which is the total receipts of the taxpayer everywhere during the taxable year. (2) For the purposes of this subsection (m): (A) (i) "Financial asset management company" means an entity that is a limited partnership, or is treated as a partnership for federal tax purposes, that is engaged in the business of providing financial asset management services, and either: (a) Has a class of equity securities registered under Section 12(g) of the Securities Exchange Act of 1934 ( 15 U.S.C. § 78l(g) ) and, as a result, is subject to the public company reporting requirements contained in Section 13(a) of the Securities Exchange Act of 1934 ( 15 U.S.C. § 78m ); or (b) Is owned by a publicly traded partnership that owns at least twenty-five percent (25%) of the entity and such ownership interest constitutes more than fifty percent (50%) of the total assets of the publicly traded partnership; and (ii) "Financial asset management company" does not include any type of real estate investment trust as defined in § 67-4-2004 ; (B) "Financial asset management services" means the following services when performed with respect to financial investments: managing portfolio assets of others on a fee or commission basis; rendering investment advice, including investment research and analysis; making determinations as to when sales and purchases of investments are to be made; and selling or purchasing of investments; (C) "Financial investments" means, without limitation, investments in stocks, stock options, bonds, and alternative asset classes (including, but not limited to, real estate, commodities, and other debt obligations); and (D) "Publicly traded partnership" means an entity that is a limited partnership, or is treated as a partnership for federal tax purposes, that files with the securities and exchange commission and whose shares are regularly traded on a securities exchange that is either registered as a national securities exchange with the securities exchange commission under Section 6 of the Securities Exchange Act of 1934 ( 15 U.S.C. § 78f ), or is a national securities exchange of a foreign country and regulated in a substantially similar manner by a foreign financial regulatory authority. (3) To elect the method of apportionment provided in this subsection (m), the taxpayer shall notify the department of the election, in writing, on its return for the taxable year to which the election applies. (4) Once a taxpayer elects the method of apportionment provided in this subsection (m), such election shall remain in effect for a minimum of five (5) tax years and thereafter until revoked. The taxpayer may revoke the election after the minimum period by notifying the department of the revocation, in writing, on its return for the first taxable year to which the revocation applies. A taxpayer that revokes the election shall not be permitted to newly elect the method of apportionment provided in this subsection (m) for a period of five (5) tax years, beginning with the tax year in which the taxpayer revoked the previous election. (5) This subsection (m) is repealed for tax years ending on or after December 31, 2025. Amended by 2023 Tenn. Acts, ch. 377, s 21, eff. 5/11/2023. Amended by 2023 Tenn. Acts, ch. 377, s 20, eff. 5/11/2023. Amended by 2023 Tenn. Acts, ch. 377, s 19, eff. 5/11/2023. Amended by 2018 Tenn. Acts, ch. 656, s 1, eff. 4/9/2018. Amended by 2017 Tenn. Acts, ch. 181, s 28, eff. 4/26/2017. Amended by 2015 Tenn. Acts, ch. 514, s 9, eff. 7/1/2016. Amended by 2015 Tenn. Acts, ch. 514, Secs.s 8, s 8 eff. 5/20/2015. Acts 1999, ch. 406, § 3; 2000, ch. 982, §§ 20 - 22, 48; 2006, ch. 1019, § 19; 2011 , ch. 467, § 2.
(a) (1) Except as otherwise provided in this part, for tax years beginning prior to July 1, 2016, all net earnings shall be apportioned to this state by multiplying the earnings by a fraction, the numerator of which shall be the property factor plus the payroll factor plus twice the receipts factor, and the denominator of the fraction shall be four (4). (2) Except as otherwise provided in this part, for tax years beginning on or after July 1, 2016, all net earnings shall be apportioned to this state by multiplying the earnings by a fraction, the numerator of which shall be the property factor plus the payroll factor plus three (3) times the receipts factor, and the denominator of the fraction shall be five (5). (3) Except as otherwise provided in this part, for tax years ending on or after December 31, 2023, but before December 31, 2024, net earnings must be apportioned to this state by multiplying the earnings by a fraction, the numerator of which is the property factor plus the payroll factor plus five (5) times the receipts factor, and the denominator of the fraction is seven (7). (4) Except as otherwise provided in this part, for tax years ending on or after December 31, 2024, but before December 31, 2025, net earnings must be apportioned to this state by multiplying the earnings by a fraction, the numerator of which is the property factor plus the payroll factor plus eleven (11) times the receipts factor, and the denominator of the fraction is thirteen (13). (5) Except as otherwise provided in this part, for tax years ending on or after December 31, 2025, net earnings must be apportioned to this state by multiplying the earnings by the receipts factor only. (6) If the application of subdivision (a)(3), (a)(4), or (a)(5) to a tax year results in a lower apportionment ratio than under the application of the apportionment method in subdivision (a)(2) as it applied to tax years ending before December 31, 2023, then a taxpayer may annually elect to apply the apportionment method in subdivision (a)(2) as it applied to tax years ending before December 31, 2023; provided, however, the election must result in a higher apportionment ratio for the tax year, and the taxpayer must have net earnings, rather than a net loss, for that tax year as computed under § 67-4-2006 . (7) Notwithstanding subdivisions (a)(3) - (a)(6), for tax years ending on or after December 31, 2023, net earnings for a "qualified member" of a "qualified group," as those terms are defined in subsection (j), must be apportioned to this state by multiplying he earnings by a fraction, the numerator of which is the property factor plus the payroll factor plus three (3) times the receipts factor, and the denominator of the fraction is five (5).
(1) Except as otherwise provided in this part, for tax years beginning prior to July 1, 2016, all net earnings shall be apportioned to this state by multiplying the earnings by a fraction, the numerator of which shall be the property factor plus the payroll factor plus twice the receipts factor, and the denominator of the fraction shall be four (4).
(2) Except as otherwise provided in this part, for tax years beginning on or after July 1, 2016, all net earnings shall be apportioned to this state by multiplying the earnings by a fraction, the numerator of which shall be the property factor plus the payroll factor plus three (3) times the receipts factor, and the denominator of the fraction shall be five (5).
(3) Except as otherwise provided in this part, for tax years ending on or after December 31, 2023, but before December 31, 2024, net earnings must be apportioned to this state by multiplying the earnings by a fraction, the numerator of which is the property factor plus the payroll factor plus five (5) times the receipts factor, and the denominator of the fraction is seven (7).
(4) Except as otherwise provided in this part, for tax years ending on or after December 31, 2024, but before December 31, 2025, net earnings must be apportioned to this state by multiplying the earnings by a fraction, the numerator of which is the property factor plus the payroll factor plus eleven (11) times the receipts factor, and the denominator of the fraction is thirteen (13).
(5) Except as otherwise provided in this part, for tax years ending on or after December 31, 2025, net earnings must be apportioned to this state by multiplying the earnings by the receipts factor only.
(6) If the application of subdivision (a)(3), (a)(4), or (a)(5) to a tax year results in a lower apportionment ratio than under the application of the apportionment method in subdivision (a)(2) as it applied to tax years ending before December 31, 2023, then a taxpayer may annually elect to apply the apportionment method in subdivision (a)(2) as it applied to tax years ending before December 31, 2023; provided, however, the election must result in a higher apportionment ratio for the tax year, and the taxpayer must have net earnings, rather than a net loss, for that tax year as computed under § 67-4-2006 .
(7) Notwithstanding subdivisions (a)(3) - (a)(6), for tax years ending on or after December 31, 2023, net earnings for a "qualified member" of a "qualified group," as those terms are defined in subsection (j), must be apportioned to this state by multiplying he earnings by a fraction, the numerator of which is the property factor plus the payroll factor plus three (3) times the receipts factor, and the denominator of the fraction is five (5).
(b) The property factor is a fraction, the numerator of which is the average value of the taxpayer's real and tangible personal property owned or rented and used in this state during the tax period, and the denominator of which is the average value of all the taxpayer's real and tangible personal property owned or rented and used during the tax period. For this purpose, "property" includes a taxpayer's ownership share of the real or tangible property owned or rented by any general partnership, or entity treated as a general partnership for federal income tax purposes, in which such taxpayer has an ownership interest. A return being filed by a limited liability company that has a general partnership as its single member shall include in its property factor only the real and tangible property owned or used by the limited liability company. "Property" also includes a taxpayer's ownership share of the real or tangible property owned or rented by any limited partnership, subchapter S corporation, limited liability company or other entity treated as a partnership for federal income tax purposes, in which the taxpayer has an ownership interest, directly or indirectly through one (1) or more such entities, and that is not doing business in Tennessee and, therefore, is not subject to Tennessee excise tax. The cost value or rental value of such property shall be determined from the books and records of the entity in which the taxpayer has an interest and such property shall be valued in accordance with subsection (c).
(c) (1) Property owned by the taxpayer is valued at its original cost. Property rented by the taxpayer is valued at eight (8) times the net annual rental rate. Net annual rental rate is the annual rental rate paid by the taxpayer less any annual rental rate received by the taxpayer from subrentals. A lessee's payments to a lessor, or on such lessor's behalf, as part of rent, or in lieu of rent, shall be included as rent in the property factor of the apportionment formula provided by this section. Except with respect to tangible personal property, for purposes of this subsection (c), payments, such as interest, taxes, insurance, repairs or other items, shall be treated as rent paid by the lessee, if they would have been paid by the lessor if the lease contract or other agreement had not specifically provided that they be paid by the lessee. (2) For purposes of this section, the value of owned or leased mobile or movable property located both inside and outside of the state of Tennessee during a tax period shall be determined on the basis of the total percentage of time such property is inside the state during the tax period; provided, that the value of an automobile or truck assigned to a traveling employee shall be considered in Tennessee, if the employee's compensation is assigned to Tennessee for purposes of the taxpayer's apportionment formula payroll factor, or if such vehicle is licensed in Tennessee.
(1) Property owned by the taxpayer is valued at its original cost. Property rented by the taxpayer is valued at eight (8) times the net annual rental rate. Net annual rental rate is the annual rental rate paid by the taxpayer less any annual rental rate received by the taxpayer from subrentals. A lessee's payments to a lessor, or on such lessor's behalf, as part of rent, or in lieu of rent, shall be included as rent in the property factor of the apportionment formula provided by this section. Except with respect to tangible personal property, for purposes of this subsection (c), payments, such as interest, taxes, insurance, repairs or other items, shall be treated as rent paid by the lessee, if they would have been paid by the lessor if the lease contract or other agreement had not specifically provided that they be paid by the lessee.
(2) For purposes of this section, the value of owned or leased mobile or movable property located both inside and outside of the state of Tennessee during a tax period shall be determined on the basis of the total percentage of time such property is inside the state during the tax period; provided, that the value of an automobile or truck assigned to a traveling employee shall be considered in Tennessee, if the employee's compensation is assigned to Tennessee for purposes of the taxpayer's apportionment formula payroll factor, or if such vehicle is licensed in Tennessee.
(d) The average value of property shall be determined by averaging the values at the beginning and ending of the tax period; but the commissioner may require the averaging of monthly values during the tax period, if reasonably required to reflect properly the average value of the taxpayer's property.
(e) The payroll factor is a fraction, the numerator of which is the total amount paid in this state during the tax period by the taxpayer for compensation, and the denominator of which is the total compensation paid everywhere during the tax period. For this purpose, "compensation" includes a taxpayer's ownership share of the compensation of any general partnership, or entity treated as a general partnership for federal income tax purposes, in which such taxpayer has an ownership interest. A return being filed by a limited liability company that has a general partnership as its single member shall include in its payroll factor only the compensation attributed to the limited liability company. "Compensation" also includes a taxpayer's share of any specific compensation of any limited partnership, subchapter S corporation, limited liability company or other entity treated as a partnership for federal income tax purposes, in which the taxpayer has an ownership interest, directly or indirectly through one (1) or more such entities, and which is not doing business in Tennessee and thus is not subject to Tennessee excise tax.
(f) Compensation is paid in this state, if: (1) The individual's service is performed entirely inside the state; (2) The individual's service is performed both inside and outside the state, but the service performed outside the state is incidental to the individual's service inside the state; or (3) Some of the service is performed in the state; and (A) The base of operations or, if there is no base of operations, the place from which the service is directed or controlled is in the state; or (B) The base of operations or the place from which the service is directed or controlled is not in any state in which some part of the service is performed, but the individual's residence is in this state.
(1) The individual's service is performed entirely inside the state;
(2) The individual's service is performed both inside and outside the state, but the service performed outside the state is incidental to the individual's service inside the state; or
(3) Some of the service is performed in the state; and (A) The base of operations or, if there is no base of operations, the place from which the service is directed or controlled is in the state; or (B) The base of operations or the place from which the service is directed or controlled is not in any state in which some part of the service is performed, but the individual's residence is in this state.
(A) The base of operations or, if there is no base of operations, the place from which the service is directed or controlled is in the state; or
(B) The base of operations or the place from which the service is directed or controlled is not in any state in which some part of the service is performed, but the individual's residence is in this state.
(g) The receipts factor is a fraction, the numerator of which is the total receipts of the taxpayer in this state during the tax period, and the denominator of which is the total receipts of the taxpayer everywhere during the tax period. For this purpose, "gross receipts" includes a taxpayer's ownership share of the gross receipts of any general partnership, or entity treated as a general partnership for federal income tax purposes, in which such taxpayer has an ownership interest. A return being filed by a limited liability company that has a general partnership as its single member shall include in its receipts factor only the gross receipts attributed to the limited liability company. "Gross receipts" also includes a taxpayer's ownership share of gross receipts of any limited partnership, subchapter S corporation, limited liability company, or other entity treated as a partnership for federal income tax purposes, in which the taxpayer has an ownership interest, directly or indirectly through one (1) or more such entities, and that is not doing business in Tennessee and thus is not subject to Tennessee excise tax.
(h) Sales of tangible personal property are in this state, if: (1) The property is delivered or shipped to a purchaser, other than the United States government, inside this state regardless of the F.O.B. point or other conditions of the sale; or (2) The property is shipped from an office, store, warehouse, factory or other place of storage in this state and the purchaser is the United States government.
(1) The property is delivered or shipped to a purchaser, other than the United States government, inside this state regardless of the F.O.B. point or other conditions of the sale; or
(2) The property is shipped from an office, store, warehouse, factory or other place of storage in this state and the purchaser is the United States government.
(i) (1) Sales, other than sales of tangible personal property, are in this state if the taxpayer's market for the sale is in this state. The taxpayer's market for a sale is in this state: (A) In the case of sale, rental, lease, or license of real property, if and to the extent the property is located in this state; (B) In the case of rental, lease, or license of tangible personal property, if and to the extent the property is located in this state; (C) In the case of sale of a service, if and to the extent the service is delivered to a location in this state; (D) In the case of intangible property: (i) That is rented, leased, or licensed, if and to the extent the intangible property is used in this state; provided, that intangible property utilized in marketing a good or service to a consumer is considered used in this state if that good or service is purchased by a consumer who is in this state; and (ii) That is sold, if and to the extent the property is used in this state; provided, that: (a) A contract right, government license, or similar intangible property that authorizes the holder to conduct a business activity in a specific geographic area is considered used in this state if the geographic area includes all or part of this state; (b) Receipts from intangible property sales that are contingent on the productivity, use, or disposition of the intangible property shall be treated as receipts from the rental, lease, or licensing of such intangible property under subdivision (i)(1)(D)(i); and (c) All other receipts from a sale of intangible property shall be excluded from the numerator and denominator of the receipts factor. (2) If the state or states of assignment under subdivision (i)(1) cannot be determined, the state or states of assignment shall be reasonably approximated. (3) If the state of assignment cannot be determined under subdivision (i)(1) or reasonably approximated under subdivision (i)(2), such sale shall be excluded from the numerator and denominator of the sales factor. (4) If the application of this subsection (i) to a tax year results in a lower apportionment factor than under the application of the apportionment method in subsection (i) as it was in effect prior to January 1, 2016, then a taxpayer may annually elect to apply the apportionment method in subsection (i) as in effect prior to January 1, 2016; provided, however, the election must result in a higher apportionment factor for the tax year, and the taxpayer must have net earnings, rather than a net loss, for that tax year as computed under § 67-4-2006 .
(1) Sales, other than sales of tangible personal property, are in this state if the taxpayer's market for the sale is in this state. The taxpayer's market for a sale is in this state: (A) In the case of sale, rental, lease, or license of real property, if and to the extent the property is located in this state; (B) In the case of rental, lease, or license of tangible personal property, if and to the extent the property is located in this state; (C) In the case of sale of a service, if and to the extent the service is delivered to a location in this state; (D) In the case of intangible property: (i) That is rented, leased, or licensed, if and to the extent the intangible property is used in this state; provided, that intangible property utilized in marketing a good or service to a consumer is considered used in this state if that good or service is purchased by a consumer who is in this state; and (ii) That is sold, if and to the extent the property is used in this state; provided, that: (a) A contract right, government license, or similar intangible property that authorizes the holder to conduct a business activity in a specific geographic area is considered used in this state if the geographic area includes all or part of this state; (b) Receipts from intangible property sales that are contingent on the productivity, use, or disposition of the intangible property shall be treated as receipts from the rental, lease, or licensing of such intangible property under subdivision (i)(1)(D)(i); and (c) All other receipts from a sale of intangible property shall be excluded from the numerator and denominator of the receipts factor.
(A) In the case of sale, rental, lease, or license of real property, if and to the extent the property is located in this state;
(B) In the case of rental, lease, or license of tangible personal property, if and to the extent the property is located in this state;
(C) In the case of sale of a service, if and to the extent the service is delivered to a location in this state;
(D) In the case of intangible property: (i) That is rented, leased, or licensed, if and to the extent the intangible property is used in this state; provided, that intangible property utilized in marketing a good or service to a consumer is considered used in this state if that good or service is purchased by a consumer who is in this state; and (ii) That is sold, if and to the extent the property is used in this state; provided, that: (a) A contract right, government license, or similar intangible property that authorizes the holder to conduct a business activity in a specific geographic area is considered used in this state if the geographic area includes all or part of this state; (b) Receipts from intangible property sales that are contingent on the productivity, use, or disposition of the intangible property shall be treated as receipts from the rental, lease, or licensing of such intangible property under subdivision (i)(1)(D)(i); and (c) All other receipts from a sale of intangible property shall be excluded from the numerator and denominator of the receipts factor.
(i) That is rented, leased, or licensed, if and to the extent the intangible property is used in this state; provided, that intangible property utilized in marketing a good or service to a consumer is considered used in this state if that good or service is purchased by a consumer who is in this state; and
(ii) That is sold, if and to the extent the property is used in this state; provided, that: (a) A contract right, government license, or similar intangible property that authorizes the holder to conduct a business activity in a specific geographic area is considered used in this state if the geographic area includes all or part of this state; (b) Receipts from intangible property sales that are contingent on the productivity, use, or disposition of the intangible property shall be treated as receipts from the rental, lease, or licensing of such intangible property under subdivision (i)(1)(D)(i); and (c) All other receipts from a sale of intangible property shall be excluded from the numerator and denominator of the receipts factor.
(a) A contract right, government license, or similar intangible property that authorizes the holder to conduct a business activity in a specific geographic area is considered used in this state if the geographic area includes all or part of this state;
(b) Receipts from intangible property sales that are contingent on the productivity, use, or disposition of the intangible property shall be treated as receipts from the rental, lease, or licensing of such intangible property under subdivision (i)(1)(D)(i); and
(c) All other receipts from a sale of intangible property shall be excluded from the numerator and denominator of the receipts factor.
(2) If the state or states of assignment under subdivision (i)(1) cannot be determined, the state or states of assignment shall be reasonably approximated.
(3) If the state of assignment cannot be determined under subdivision (i)(1) or reasonably approximated under subdivision (i)(2), such sale shall be excluded from the numerator and denominator of the sales factor.
(4) If the application of this subsection (i) to a tax year results in a lower apportionment factor than under the application of the apportionment method in subsection (i) as it was in effect prior to January 1, 2016, then a taxpayer may annually elect to apply the apportionment method in subsection (i) as in effect prior to January 1, 2016; provided, however, the election must result in a higher apportionment factor for the tax year, and the taxpayer must have net earnings, rather than a net loss, for that tax year as computed under § 67-4-2006 .
(j) (1) For any qualified member of a qualified group, total receipts in this state shall equal the receipts from all sales of tangible personal property that are in this state as determined under subsection (h), plus the arithmetical average of the receipts from all sales other than sales of tangible personal property that are in this state as determined under each of the following alternative methods: (A) All sales that are in this state as determined under subsection (i); and (B) All sales, other than sales of tangible personal property, where the earnings-producing activity is performed: (i) In this state; or (ii) Both in and outside this state and a greater proportion of the earnings-producing activity is performed in this state than in any other state, based on costs of performance. (2) For purposes of this subsection (j), the following definitions shall apply: (A) "Qualified expenditures" means expenditures incurred in transactions with persons who are not members of the qualified group for the following: (i) Purchasing tangible personal property placed in service in this state by a member of the qualified group; and (ii) Payroll for employees employed by a member of the qualified group at a facility in this state; (B) "Qualified group" means an affiliated group that meets both of the following criteria: (i) One (1) or more members of the group is a qualified member; and (ii) The members of the group, during the tax period, either: (a) Incur, in the aggregate, qualified expenditures in an amount greater than one hundred fifty million dollars ($150,000,000); or (b) Make sales that are subject to the tax imposed by chapter 6 of this title in excess of one hundred fifty million dollars ($150,000,000); (C) "Qualified member" means a person that is principally engaged in the sale of "telecommunications service," "mobile telecommunications service," "internet access service," "video programming service," "direct-to-home satellite television programming service," or a combination of such services, as each such term is used or defined in chapter 6 of this title. (3) The method provided by this subsection (j) for determining the total receipts in this state of a qualified member shall be the only method for determining such receipts under this part.
(1) For any qualified member of a qualified group, total receipts in this state shall equal the receipts from all sales of tangible personal property that are in this state as determined under subsection (h), plus the arithmetical average of the receipts from all sales other than sales of tangible personal property that are in this state as determined under each of the following alternative methods: (A) All sales that are in this state as determined under subsection (i); and (B) All sales, other than sales of tangible personal property, where the earnings-producing activity is performed: (i) In this state; or (ii) Both in and outside this state and a greater proportion of the earnings-producing activity is performed in this state than in any other state, based on costs of performance.
(A) All sales that are in this state as determined under subsection (i); and
(B) All sales, other than sales of tangible personal property, where the earnings-producing activity is performed: (i) In this state; or (ii) Both in and outside this state and a greater proportion of the earnings-producing activity is performed in this state than in any other state, based on costs of performance.
(i) In this state; or
(ii) Both in and outside this state and a greater proportion of the earnings-producing activity is performed in this state than in any other state, based on costs of performance.
(2) For purposes of this subsection (j), the following definitions shall apply: (A) "Qualified expenditures" means expenditures incurred in transactions with persons who are not members of the qualified group for the following: (i) Purchasing tangible personal property placed in service in this state by a member of the qualified group; and (ii) Payroll for employees employed by a member of the qualified group at a facility in this state; (B) "Qualified group" means an affiliated group that meets both of the following criteria: (i) One (1) or more members of the group is a qualified member; and (ii) The members of the group, during the tax period, either: (a) Incur, in the aggregate, qualified expenditures in an amount greater than one hundred fifty million dollars ($150,000,000); or (b) Make sales that are subject to the tax imposed by chapter 6 of this title in excess of one hundred fifty million dollars ($150,000,000); (C) "Qualified member" means a person that is principally engaged in the sale of "telecommunications service," "mobile telecommunications service," "internet access service," "video programming service," "direct-to-home satellite television programming service," or a combination of such services, as each such term is used or defined in chapter 6 of this title.
(A) "Qualified expenditures" means expenditures incurred in transactions with persons who are not members of the qualified group for the following: (i) Purchasing tangible personal property placed in service in this state by a member of the qualified group; and (ii) Payroll for employees employed by a member of the qualified group at a facility in this state;
(i) Purchasing tangible personal property placed in service in this state by a member of the qualified group; and
(ii) Payroll for employees employed by a member of the qualified group at a facility in this state;
(B) "Qualified group" means an affiliated group that meets both of the following criteria: (i) One (1) or more members of the group is a qualified member; and (ii) The members of the group, during the tax period, either: (a) Incur, in the aggregate, qualified expenditures in an amount greater than one hundred fifty million dollars ($150,000,000); or (b) Make sales that are subject to the tax imposed by chapter 6 of this title in excess of one hundred fifty million dollars ($150,000,000);
(i) One (1) or more members of the group is a qualified member; and
(ii) The members of the group, during the tax period, either: (a) Incur, in the aggregate, qualified expenditures in an amount greater than one hundred fifty million dollars ($150,000,000); or (b) Make sales that are subject to the tax imposed by chapter 6 of this title in excess of one hundred fifty million dollars ($150,000,000);
(a) Incur, in the aggregate, qualified expenditures in an amount greater than one hundred fifty million dollars ($150,000,000); or
(b) Make sales that are subject to the tax imposed by chapter 6 of this title in excess of one hundred fifty million dollars ($150,000,000);
(C) "Qualified member" means a person that is principally engaged in the sale of "telecommunications service," "mobile telecommunications service," "internet access service," "video programming service," "direct-to-home satellite television programming service," or a combination of such services, as each such term is used or defined in chapter 6 of this title.
(3) The method provided by this subsection (j) for determining the total receipts in this state of a qualified member shall be the only method for determining such receipts under this part.
(k) Notwithstanding any provision of this section to the contrary, any gain on the sale of an asset that is designated as goodwill and is required to be included as Class VII assets pursuant to the reporting requirements of 26 U.S.C. §§ 338(b)(5) and 1060 , and associated regulations, shall be excluded from both the numerator and the denominator of the apportionment formula receipts factor.
(l) [Repealed effective December 31, 2025; see (l)(5).] (1) A taxpayer whose principal business in Tennessee is manufacturing may elect to apportion net earnings to this state by multiplying the earnings by a fraction, the numerator of which is the total receipts of the taxpayer in Tennessee during the taxable year and the denominator of which is the total receipts of the taxpayer from any location within or outside of the state during the taxable year. (2) For purposes of this subsection ( l ), a taxpayer's principal business in Tennessee is manufacturing if more than fifty percent (50%) of the revenue derived from its activities in this state, excluding passive income, is from fabricating or processing tangible personal property for resale and consumption off the premises. For purposes of this subsection ( l ), "passive income" means dividend income, interest income, income derived from the sale of securities, and income derived from the licensing or sale of patents, trademarks, tradenames, copyrights, know-how, or other intellectual property. (3) To elect the method of apportionment provided in this subsection ( l ), the taxpayer shall notify the department of the election, in writing, on its return for the taxable year to which the election applies. (4) Once a taxpayer elects the method of apportionment provided in this subsection ( l ), such election shall remain in effect for a minimum of five (5) tax years and thereafter until revoked. The taxpayer may revoke the election after the minimum period by notifying the department of the revocation, in writing, on its return for the first taxable year to which the revocation applies. A taxpayer that revokes the election shall not be permitted to newly elect the method of apportionment provided in this subsection ( l ) for a period of five (5) tax years, beginning with the tax year in which the taxpayer revoked the previous election. (5) This subsection ( l ) is repealed for tax years ending on or after December 31, 2025.
(1) A taxpayer whose principal business in Tennessee is manufacturing may elect to apportion net earnings to this state by multiplying the earnings by a fraction, the numerator of which is the total receipts of the taxpayer in Tennessee during the taxable year and the denominator of which is the total receipts of the taxpayer from any location within or outside of the state during the taxable year.
(2) For purposes of this subsection ( l ), a taxpayer's principal business in Tennessee is manufacturing if more than fifty percent (50%) of the revenue derived from its activities in this state, excluding passive income, is from fabricating or processing tangible personal property for resale and consumption off the premises. For purposes of this subsection ( l ), "passive income" means dividend income, interest income, income derived from the sale of securities, and income derived from the licensing or sale of patents, trademarks, tradenames, copyrights, know-how, or other intellectual property.
(3) To elect the method of apportionment provided in this subsection ( l ), the taxpayer shall notify the department of the election, in writing, on its return for the taxable year to which the election applies.
(4) Once a taxpayer elects the method of apportionment provided in this subsection ( l ), such election shall remain in effect for a minimum of five (5) tax years and thereafter until revoked. The taxpayer may revoke the election after the minimum period by notifying the department of the revocation, in writing, on its return for the first taxable year to which the revocation applies. A taxpayer that revokes the election shall not be permitted to newly elect the method of apportionment provided in this subsection ( l ) for a period of five (5) tax years, beginning with the tax year in which the taxpayer revoked the previous election.
(5) This subsection ( l ) is repealed for tax years ending on or after December 31, 2025.
(m) [Repealed effective December 31, 2025; see (m)(5).] (1) Notwithstanding any other provision of this part, a financial asset management company may elect to apportion net earnings by multiplying such earnings by a fraction, the numerator of which is the total receipts of the taxpayer in Tennessee during the taxable year as determined under this section and the denominator of which is the total receipts of the taxpayer everywhere during the taxable year. (2) For the purposes of this subsection (m): (A) (i) "Financial asset management company" means an entity that is a limited partnership, or is treated as a partnership for federal tax purposes, that is engaged in the business of providing financial asset management services, and either: (a) Has a class of equity securities registered under Section 12(g) of the Securities Exchange Act of 1934 ( 15 U.S.C. § 78l(g) ) and, as a result, is subject to the public company reporting requirements contained in Section 13(a) of the Securities Exchange Act of 1934 ( 15 U.S.C. § 78m ); or (b) Is owned by a publicly traded partnership that owns at least twenty-five percent (25%) of the entity and such ownership interest constitutes more than fifty percent (50%) of the total assets of the publicly traded partnership; and (ii) "Financial asset management company" does not include any type of real estate investment trust as defined in § 67-4-2004 ; (B) "Financial asset management services" means the following services when performed with respect to financial investments: managing portfolio assets of others on a fee or commission basis; rendering investment advice, including investment research and analysis; making determinations as to when sales and purchases of investments are to be made; and selling or purchasing of investments; (C) "Financial investments" means, without limitation, investments in stocks, stock options, bonds, and alternative asset classes (including, but not limited to, real estate, commodities, and other debt obligations); and (D) "Publicly traded partnership" means an entity that is a limited partnership, or is treated as a partnership for federal tax purposes, that files with the securities and exchange commission and whose shares are regularly traded on a securities exchange that is either registered as a national securities exchange with the securities exchange commission under Section 6 of the Securities Exchange Act of 1934 ( 15 U.S.C. § 78f ), or is a national securities exchange of a foreign country and regulated in a substantially similar manner by a foreign financial regulatory authority. (3) To elect the method of apportionment provided in this subsection (m), the taxpayer shall notify the department of the election, in writing, on its return for the taxable year to which the election applies. (4) Once a taxpayer elects the method of apportionment provided in this subsection (m), such election shall remain in effect for a minimum of five (5) tax years and thereafter until revoked. The taxpayer may revoke the election after the minimum period by notifying the department of the revocation, in writing, on its return for the first taxable year to which the revocation applies. A taxpayer that revokes the election shall not be permitted to newly elect the method of apportionment provided in this subsection (m) for a period of five (5) tax years, beginning with the tax year in which the taxpayer revoked the previous election. (5) This subsection (m) is repealed for tax years ending on or after December 31, 2025.
(1) Notwithstanding any other provision of this part, a financial asset management company may elect to apportion net earnings by multiplying such earnings by a fraction, the numerator of which is the total receipts of the taxpayer in Tennessee during the taxable year as determined under this section and the denominator of which is the total receipts of the taxpayer everywhere during the taxable year.
(2) For the purposes of this subsection (m): (A) (i) "Financial asset management company" means an entity that is a limited partnership, or is treated as a partnership for federal tax purposes, that is engaged in the business of providing financial asset management services, and either: (a) Has a class of equity securities registered under Section 12(g) of the Securities Exchange Act of 1934 ( 15 U.S.C. § 78l(g) ) and, as a result, is subject to the public company reporting requirements contained in Section 13(a) of the Securities Exchange Act of 1934 ( 15 U.S.C. § 78m ); or (b) Is owned by a publicly traded partnership that owns at least twenty-five percent (25%) of the entity and such ownership interest constitutes more than fifty percent (50%) of the total assets of the publicly traded partnership; and (ii) "Financial asset management company" does not include any type of real estate investment trust as defined in § 67-4-2004 ; (B) "Financial asset management services" means the following services when performed with respect to financial investments: managing portfolio assets of others on a fee or commission basis; rendering investment advice, including investment research and analysis; making determinations as to when sales and purchases of investments are to be made; and selling or purchasing of investments; (C) "Financial investments" means, without limitation, investments in stocks, stock options, bonds, and alternative asset classes (including, but not limited to, real estate, commodities, and other debt obligations); and (D) "Publicly traded partnership" means an entity that is a limited partnership, or is treated as a partnership for federal tax purposes, that files with the securities and exchange commission and whose shares are regularly traded on a securities exchange that is either registered as a national securities exchange with the securities exchange commission under Section 6 of the Securities Exchange Act of 1934 ( 15 U.S.C. § 78f ), or is a national securities exchange of a foreign country and regulated in a substantially similar manner by a foreign financial regulatory authority.
(A) (i) "Financial asset management company" means an entity that is a limited partnership, or is treated as a partnership for federal tax purposes, that is engaged in the business of providing financial asset management services, and either: (a) Has a class of equity securities registered under Section 12(g) of the Securities Exchange Act of 1934 ( 15 U.S.C. § 78l(g) ) and, as a result, is subject to the public company reporting requirements contained in Section 13(a) of the Securities Exchange Act of 1934 ( 15 U.S.C. § 78m ); or (b) Is owned by a publicly traded partnership that owns at least twenty-five percent (25%) of the entity and such ownership interest constitutes more than fifty percent (50%) of the total assets of the publicly traded partnership; and (ii) "Financial asset management company" does not include any type of real estate investment trust as defined in § 67-4-2004 ;
(i) "Financial asset management company" means an entity that is a limited partnership, or is treated as a partnership for federal tax purposes, that is engaged in the business of providing financial asset management services, and either: (a) Has a class of equity securities registered under Section 12(g) of the Securities Exchange Act of 1934 ( 15 U.S.C. § 78l(g) ) and, as a result, is subject to the public company reporting requirements contained in Section 13(a) of the Securities Exchange Act of 1934 ( 15 U.S.C. § 78m ); or (b) Is owned by a publicly traded partnership that owns at least twenty-five percent (25%) of the entity and such ownership interest constitutes more than fifty percent (50%) of the total assets of the publicly traded partnership; and
(a) Has a class of equity securities registered under Section 12(g) of the Securities Exchange Act of 1934 ( 15 U.S.C. § 78l(g) ) and, as a result, is subject to the public company reporting requirements contained in Section 13(a) of the Securities Exchange Act of 1934 ( 15 U.S.C. § 78m ); or
(b) Is owned by a publicly traded partnership that owns at least twenty-five percent (25%) of the entity and such ownership interest constitutes more than fifty percent (50%) of the total assets of the publicly traded partnership; and
(ii) "Financial asset management company" does not include any type of real estate investment trust as defined in § 67-4-2004 ;
(B) "Financial asset management services" means the following services when performed with respect to financial investments: managing portfolio assets of others on a fee or commission basis; rendering investment advice, including investment research and analysis; making determinations as to when sales and purchases of investments are to be made; and selling or purchasing of investments;
(C) "Financial investments" means, without limitation, investments in stocks, stock options, bonds, and alternative asset classes (including, but not limited to, real estate, commodities, and other debt obligations); and
(D) "Publicly traded partnership" means an entity that is a limited partnership, or is treated as a partnership for federal tax purposes, that files with the securities and exchange commission and whose shares are regularly traded on a securities exchange that is either registered as a national securities exchange with the securities exchange commission under Section 6 of the Securities Exchange Act of 1934 ( 15 U.S.C. § 78f ), or is a national securities exchange of a foreign country and regulated in a substantially similar manner by a foreign financial regulatory authority.
(3) To elect the method of apportionment provided in this subsection (m), the taxpayer shall notify the department of the election, in writing, on its return for the taxable year to which the election applies.
(4) Once a taxpayer elects the method of apportionment provided in this subsection (m), such election shall remain in effect for a minimum of five (5) tax years and thereafter until revoked. The taxpayer may revoke the election after the minimum period by notifying the department of the revocation, in writing, on its return for the first taxable year to which the revocation applies. A taxpayer that revokes the election shall not be permitted to newly elect the method of apportionment provided in this subsection (m) for a period of five (5) tax years, beginning with the tax year in which the taxpayer revoked the previous election.
(5) This subsection (m) is repealed for tax years ending on or after December 31, 2025.
Amended by 2023 Tenn. Acts, ch. 377, s 21, eff. 5/11/2023.
Amended by 2023 Tenn. Acts, ch. 377, s 20, eff. 5/11/2023.
Amended by 2023 Tenn. Acts, ch. 377, s 19, eff. 5/11/2023.
Amended by 2018 Tenn. Acts, ch. 656, s 1, eff. 4/9/2018.
Amended by 2017 Tenn. Acts, ch. 181, s 28, eff. 4/26/2017.
Amended by 2015 Tenn. Acts, ch. 514, s 9, eff. 7/1/2016.
Amended by 2015 Tenn. Acts, ch. 514, Secs.s 8, s 8 eff. 5/20/2015.
Acts 1999, ch. 406, § 3; 2000, ch. 982, §§ 20 - 22, 48; 2006, ch. 1019, § 19; 2011 , ch. 467, § 2.
Tenn. Code Ann. § 67-1-1403 — TN Code / Title 67 / Chapter 1 / Section 67-1-1403
Lien for taxes in favor of state
Status: in_force

(a) If any person liable to pay any state tax or fee administered by the commissioner of revenue neglects or refuses to pay the tax or fee, the amount, including additionally incurred taxes, fees, penalties, interest, and costs, shall be a lien in favor of the state. Such lien shall arise at the time an initial proposed assessment of any liability is made, and it shall continue until the amounts of the original proposed assessment and any subsequent assessments of liability for taxes, fees, penalties, interest, or costs are fully paid. The lien shall attach to all interests in property, either real or personal, tangible or intangible, in this state then owned or subsequently acquired by the person against whom the proposed assessment is made. For purposes of this section, the definition of "assessment" is as provided in this part and the rules promulgated pursuant to this part. (b) The commissioner shall cause a notice of such lien to be recorded in the office of the county register of deeds in the county or counties in which the taxpayer's business or residence is located, or in any county in which the taxpayer has an interest in property, and such notice shall be recorded in the same manner as liens are recorded in that office. There shall be no fees collected by the county register at the time such a notice is recorded, but the county register shall extend credit to the department for such fees as are chargeable, and submit the county register's bill at the end of each month to the department in order to obtain payment. Such recordation shall constitute notice of both the original proposed assessment and all subsequent assessments of liability against the same taxpayer. Upon request, the department shall disclose the specific amount of liability at a given date to any interested party legally entitled to such information. (c) The lien of the state of Tennessee for taxes or fees, or both, shall be superior to all liens and security interests created under Tennessee law except: (1) County and municipal ad valorem taxes; (2) Deeds or deeds of trust that are recorded prior to the recordation of notice of the state lien; (3) Security interests created pursuant to Article 9 of the Uniform Commercial Code, compiled in title 47, chapter 9, that require filing for perfection and that are properly filed prior to recordation of the notice of the state lien; (4) Security interests perfected under the Uniform Commercial Code without filing, as provided in title 47, chapter 9, that are properly perfected prior to recordation of the notice of the state lien; and (5) Vendors' liens on real estate provided for in title 66, chapter 10 that are recorded prior to the recordation of notice of the state lien. (d) Notwithstanding any other law to the contrary, the lien for taxes imposed by chapter 8, parts 2-5 of this title shall arise at the date of death, and the lien for taxes imposed by chapter 8, part 1 of this title shall arise at the date of gift and shall attach to any interest in property transferred and to any interest in property acquired in exchange or substitution for any property transferred. (e) Nothing in this section shall be interpreted to give the state priority over any deed of trust or any security interest perfected under the Uniform Commercial Code, compiled in title 47, that is filed prior to the filing of the notice of state tax lien, regardless of when such taxes are assessed. (f) (1) The notice of lien required to be filed under subsection (b), or any renewal of the lien, shall be effective for ten (10) years from the date of filing. Any such notice of lien that has remained on file for more than ten (10) years, without renewal, shall be null and void against all persons. (2) The commissioner may cause a renewal of such notice of lien to be filed prior to the expiration of ten (10) years from the filing of the original notice, if a lien in favor of the state under subsection (a) continues to exist against the taxpayer. If such renewal is filed prior to the expiration of the ten-year period, the priority of the state lien for taxes covered by the notice shall continue to be determined under subsection (c), based on the date of filing of the original notice of lien. (g) Any right to redemption referred to in this part shall not be affected by subsection (f). Amended by 2022 Tenn. Acts, ch. 681, s 1, eff. 3/28/2022. Amended by 2014 Tenn. Acts, ch. 854, s 4, eff. 1/1/2015. Acts 1978, ch. 686, § 1; T.C.A., § 67-6046; Acts 1984, ch. 781, § 1; 1985, ch. 453, § 7; 1994, ch. 640, § 1; 2000, ch. 846, § 30.
(a) If any person liable to pay any state tax or fee administered by the commissioner of revenue neglects or refuses to pay the tax or fee, the amount, including additionally incurred taxes, fees, penalties, interest, and costs, shall be a lien in favor of the state. Such lien shall arise at the time an initial proposed assessment of any liability is made, and it shall continue until the amounts of the original proposed assessment and any subsequent assessments of liability for taxes, fees, penalties, interest, or costs are fully paid. The lien shall attach to all interests in property, either real or personal, tangible or intangible, in this state then owned or subsequently acquired by the person against whom the proposed assessment is made. For purposes of this section, the definition of "assessment" is as provided in this part and the rules promulgated pursuant to this part.
(b) The commissioner shall cause a notice of such lien to be recorded in the office of the county register of deeds in the county or counties in which the taxpayer's business or residence is located, or in any county in which the taxpayer has an interest in property, and such notice shall be recorded in the same manner as liens are recorded in that office. There shall be no fees collected by the county register at the time such a notice is recorded, but the county register shall extend credit to the department for such fees as are chargeable, and submit the county register's bill at the end of each month to the department in order to obtain payment. Such recordation shall constitute notice of both the original proposed assessment and all subsequent assessments of liability against the same taxpayer. Upon request, the department shall disclose the specific amount of liability at a given date to any interested party legally entitled to such information.
(c) The lien of the state of Tennessee for taxes or fees, or both, shall be superior to all liens and security interests created under Tennessee law except: (1) County and municipal ad valorem taxes; (2) Deeds or deeds of trust that are recorded prior to the recordation of notice of the state lien; (3) Security interests created pursuant to Article 9 of the Uniform Commercial Code, compiled in title 47, chapter 9, that require filing for perfection and that are properly filed prior to recordation of the notice of the state lien; (4) Security interests perfected under the Uniform Commercial Code without filing, as provided in title 47, chapter 9, that are properly perfected prior to recordation of the notice of the state lien; and (5) Vendors' liens on real estate provided for in title 66, chapter 10 that are recorded prior to the recordation of notice of the state lien.
(1) County and municipal ad valorem taxes;
(2) Deeds or deeds of trust that are recorded prior to the recordation of notice of the state lien;
(3) Security interests created pursuant to Article 9 of the Uniform Commercial Code, compiled in title 47, chapter 9, that require filing for perfection and that are properly filed prior to recordation of the notice of the state lien;
(4) Security interests perfected under the Uniform Commercial Code without filing, as provided in title 47, chapter 9, that are properly perfected prior to recordation of the notice of the state lien; and
(5) Vendors' liens on real estate provided for in title 66, chapter 10 that are recorded prior to the recordation of notice of the state lien.
(d) Notwithstanding any other law to the contrary, the lien for taxes imposed by chapter 8, parts 2-5 of this title shall arise at the date of death, and the lien for taxes imposed by chapter 8, part 1 of this title shall arise at the date of gift and shall attach to any interest in property transferred and to any interest in property acquired in exchange or substitution for any property transferred.
(e) Nothing in this section shall be interpreted to give the state priority over any deed of trust or any security interest perfected under the Uniform Commercial Code, compiled in title 47, that is filed prior to the filing of the notice of state tax lien, regardless of when such taxes are assessed.
(f) (1) The notice of lien required to be filed under subsection (b), or any renewal of the lien, shall be effective for ten (10) years from the date of filing. Any such notice of lien that has remained on file for more than ten (10) years, without renewal, shall be null and void against all persons. (2) The commissioner may cause a renewal of such notice of lien to be filed prior to the expiration of ten (10) years from the filing of the original notice, if a lien in favor of the state under subsection (a) continues to exist against the taxpayer. If such renewal is filed prior to the expiration of the ten-year period, the priority of the state lien for taxes covered by the notice shall continue to be determined under subsection (c), based on the date of filing of the original notice of lien.
(1) The notice of lien required to be filed under subsection (b), or any renewal of the lien, shall be effective for ten (10) years from the date of filing. Any such notice of lien that has remained on file for more than ten (10) years, without renewal, shall be null and void against all persons.
(2) The commissioner may cause a renewal of such notice of lien to be filed prior to the expiration of ten (10) years from the filing of the original notice, if a lien in favor of the state under subsection (a) continues to exist against the taxpayer. If such renewal is filed prior to the expiration of the ten-year period, the priority of the state lien for taxes covered by the notice shall continue to be determined under subsection (c), based on the date of filing of the original notice of lien.
(g) Any right to redemption referred to in this part shall not be affected by subsection (f).
Amended by 2022 Tenn. Acts, ch. 681, s 1, eff. 3/28/2022.
Amended by 2014 Tenn. Acts, ch. 854, s 4, eff. 1/1/2015.
Acts 1978, ch. 686, § 1; T.C.A., § 67-6046; Acts 1984, ch. 781, § 1; 1985, ch. 453, § 7; 1994, ch. 640, § 1; 2000, ch. 846, § 30.
Tenn. Code Ann. § 67-4-1907 — TN Code / Title 67 / Chapter 4 / Section 67-4-1907
Local tax
Status: in_force

(a) In addition to the state tax provided in § 67-4-1901 , any county that meets the requirements of subsection (d) is authorized to levy a surcharge or tax of two percent (2%) of the gross proceeds derived from the lease or rental of any passenger motor vehicle, truck or trailer for periods of thirty-one (31) days or less; provided, that such surcharge or tax shall not apply to an automobile rented by an insurance company as a replacement vehicle for a policy holder or by a business that rents a truck or trailer for the purpose of transporting goods, or by any individual or business that rents a vehicle as a replacement while the renter's vehicle is being repaired, replaced or serviced; provided, further, that the individual presents to the renter upon return of the rented vehicle a copy of the repair or service invoice or signs a statement under penalty of perjury that the lease or rental of the vehicle is used as a replacement for a vehicle that is being repaired, replaced, or serviced. The surcharge or tax shall not apply to any vehicle rental transaction in which an entity whose principal business activity is the sale and service of new and used motor vehicles is a party. This surcharge or tax shall apply to the gross proceeds from the rental agreement, excluding any sales taxes imposed by chapter 6 of this title. The surcharge or tax shall be subject to the exemptions provided in § 67-4-1906 . The surcharge or tax shall not be subject to the credit provided in § 67-4-1903 and shall be implemented consistent with the existing tax policies and procedures of the department of revenue. (b) This tax or surcharge shall be in addition to any tax, fee or license imposed directly or indirectly. (c) (1) The tax shall be collected from the customer at the time of the presentation of the invoice for the rental, whether prior to delivery or after return of the vehicle. (2) Monthly returns and remittances shall be filed by each business with the county clerk not later than the twentieth day of each month for the preceding month upon forms prescribed, prepared and furnished by the county. (3) The county clerk in administering and enforcing the surcharge or tax shall additionally have those powers and duties with respect to collecting taxes as provided in this title, including, but not limited to, the collection of interest and penalties on businesses to the same extent and manner provided in § 67-4-1408 with respect to the hotel occupancy tax, or as otherwise provided by law. (d) All revenue received by the county from this surcharge or tax shall be deposited into a county fund entitled the NBA arena fund which shall be used for the purpose of paying the costs incurred in modification or construction of an arena facility for a National Basketball Association (NBA) member professional basketball team. In the event that a city within the county participates jointly with the county in the contribution of capital expenditures for construction of such an arena facility, the revenue from this surcharge or tax shall be applied and allocated as follows: (1) The revenue from such tax shall first be applied to payment of bonded indebtedness, principal and interest, including expenses of the bond sale or sales, incurred by both the county and the city, or by either of them, for construction of such facilities and such revenue shall be allocated between the county and the city in such amounts necessary to meet the fiscal debt service requirements each year of both if there are sufficient funds. Such allocation shall be based upon actual bonded indebtedness incurred for such purpose, without deduction or offset due to any grant, credit or benefit that either government entity may be entitled by law to receive in connection with, or as a result of, such capital expenditures, such as any grant, credit or benefit accruing under the federal housing and urban renewal statutes; (2) Beginning on June 30 of the first full year of collection of this tax and on the same date of each year thereafter, the county shall calculate and pay over to the city that amount due such city from the proceeds of this surcharge or tax during the fiscal year then ending. Revenue derived from the levy of this tax during the first year in which the tax is levied shall be carried over for use in the next ensuing fiscal year in the payment of the allocable amounts to the county and the city; (3) If, at the close of any fiscal year, the revenue from such tax shall not be sufficient to meet the total debt service of both the county and the city for bonded indebtedness incurred for construction of such arena facility, the available revenue from this tax shall be allocated between the county and the city in the same direct proportion as such bonded indebtedness of each bears to the total of such bonded indebtedness of both, calculated upon the basis of the total principal amount of all such bonds that have been issued by the county and the city at any time prior to the close of that fiscal year; provided, that the balance, if any, of such debt service of either the county or the city not paid by revenue of this tax at the end of each fiscal year shall be accumulated by each in a separate deficit account that shall bear simple interest at the same rate as the bonds issued by each such governmental entity for construction of such facilities; (4) If the revenue from such tax in any fiscal year exceeds the total of such debt service requirements for that year, such surplus revenue thus accruing may be retained by the county as a sinking fund for such future debt service requirements or such surplus may be applied to the reduction of the deficit accounts of the county and the city in the same proportion as provided in subdivision (d)(3); (5) In the event the total bonded indebtedness incurred for construction of such arena facility by either the county or the municipality shall be paid in full as to bond principal and interest, including expenses of the bond sale or sales, and some portion of such bonded indebtedness of one (1) governmental entity remains unpaid, then that governmental entity whose bonded indebtedness has been satisfied in full shall cease, for the time being, to share in the revenue of this tax, and the total revenue from this tax shall be applied toward payment of such outstanding bonded indebtedness of the other governmental entity. For purposes of this subdivision (d)(5) only, the bonded indebtedness of either the county or the city shall be considered paid in full whenever the bonded indebtedness obligation to the holders of such obligation shall have been satisfied in full, even though such obligations may have been paid in part from sources other than the revenue from this tax. (e) Upon the total of such bonded indebtedness of both the county and the city being paid in full, including principal and interest, and including expenses of the bond sale or sales, then the revenue from this surcharge or tax, together with any surplus revenue accumulated in accordance with subdivision (d)(4), shall next be applied to the county and the city's accumulated deficit accounts as provided in subdivision (d)(3). For purposes of this subsection (e) only, the revenue and surplus, if any, shall be allocated between the county and the city in the same direct proportion that such deficit account of each bears to the total of such deficit accounts of both governmental entities. Upon one (1) of such governmental entities being reimbursed in full, including principal and interest on such deficit account, with a balance of the deficit account of the other governmental entity remaining unreimbursed, then the total revenue from this surcharge or tax shall, for the time being, be applied to reimbursement of the deficit account of that governmental entity whose account remains unpaid. (f) When both the county and the municipality shall have been reimbursed in full for principal and interest for such deficit accounts, in accordance with subsection (e), then the revenue from this tax shall next be applied to reimburse both the county and the city for capital expenditures for construction of such facilities made from sources other than the proceeds of bonded indebtedness, including, but not limited to, capital expenditures made from general revenues, sinking funds for capital improvements, and contributions in-kind of real or personal property. For purposes of this subsection (f) only, the revenue from this tax or surcharge, together with and including any surplus in the NBA arena fund, shall be allocated fifty percent (50%) to the county and fifty percent (50%) to the city. When either of such governmental entities shall be reimbursed in full for all such capital expenditures for construction of such facilities, then the total revenue from this tax or surcharge shall be applied to reimbursement of the other governmental entity for such capital expenditures. Upon both the county and the municipality being reimbursed in full for capital expenditures for construction of such facilities, the county's taxing resolution shall be repealed and this surcharge or tax shall no longer be levied; provided, that any funds remaining in the NBA arena fund, after all obligations imposed under this section shall have been fulfilled, shall be paid over to any governmental board or agency responsible for operation of the arena facility for use by it in the promotion and advertisement of the auditorium convention center facilities. (g) Notwithstanding any other provision of this section to the contrary, in the event that the county and a city within the county shall create or have created a sports authority pursuant to title 7, chapter 67, and such sports authority issues bonds, including refunding bonds, for the purpose of paying the costs incurred in the modification or construction of an arena facility for an NBA member professional basketball team, then all revenues received by the county from the surcharge or tax deposited into the NBA arena fund shall be transferred no less than monthly to a fund of the sports authority to be applied to the punctual payment of the principal and interest on such bonds, required reserves, administrative costs, and capital repair or improvement costs payable by the sports authority in connection with the arena facilities. In the event the revenue from such tax deposited with the sports authority in any fiscal year exceeds the payment of principal and interest on such bonds, required reserves, administrative costs and capital repair or improvement costs payable by the sports authority in such year, then such surplus revenue shall be deposited with the sports authority to be held in a fund to be applied to such future costs of the sports authority. In the event the total bonded indebtedness incurred for the construction of such arena facility by the sports authority shall be paid in full as to bond principal and interest, including expenses of the bond sale or sales and other remaining costs payable by the sports authority in connection with such arena facility, then the total revenue from this tax shall be applied in the manner set forth in subsection (d), and shall terminate at the time set forth in subsection (f). For purposes of this subsection (g) only, the bonded indebtedness of the sports authority shall be considered paid in full whenever the bonded indebtedness obligation to the holders of such obligation shall have been satisfied in full, even though such obligation may have been paid in part from sources other than the revenue of this tax. (h) Notwithstanding this section or another law to the contrary, the allocation of revenue from the surcharge or tax provided in subsections (d)-(g) must continue until June 30, 2059. Amended by 2023 Tenn. Acts, ch. 272, s 1, eff. 4/28/2023. Acts 2001, ch. 344, § 1; 2002, ch. 492, §§ 1, 2.
(a) In addition to the state tax provided in § 67-4-1901 , any county that meets the requirements of subsection (d) is authorized to levy a surcharge or tax of two percent (2%) of the gross proceeds derived from the lease or rental of any passenger motor vehicle, truck or trailer for periods of thirty-one (31) days or less; provided, that such surcharge or tax shall not apply to an automobile rented by an insurance company as a replacement vehicle for a policy holder or by a business that rents a truck or trailer for the purpose of transporting goods, or by any individual or business that rents a vehicle as a replacement while the renter's vehicle is being repaired, replaced or serviced; provided, further, that the individual presents to the renter upon return of the rented vehicle a copy of the repair or service invoice or signs a statement under penalty of perjury that the lease or rental of the vehicle is used as a replacement for a vehicle that is being repaired, replaced, or serviced. The surcharge or tax shall not apply to any vehicle rental transaction in which an entity whose principal business activity is the sale and service of new and used motor vehicles is a party. This surcharge or tax shall apply to the gross proceeds from the rental agreement, excluding any sales taxes imposed by chapter 6 of this title. The surcharge or tax shall be subject to the exemptions provided in § 67-4-1906 . The surcharge or tax shall not be subject to the credit provided in § 67-4-1903 and shall be implemented consistent with the existing tax policies and procedures of the department of revenue.
(b) This tax or surcharge shall be in addition to any tax, fee or license imposed directly or indirectly.
(c) (1) The tax shall be collected from the customer at the time of the presentation of the invoice for the rental, whether prior to delivery or after return of the vehicle. (2) Monthly returns and remittances shall be filed by each business with the county clerk not later than the twentieth day of each month for the preceding month upon forms prescribed, prepared and furnished by the county. (3) The county clerk in administering and enforcing the surcharge or tax shall additionally have those powers and duties with respect to collecting taxes as provided in this title, including, but not limited to, the collection of interest and penalties on businesses to the same extent and manner provided in § 67-4-1408 with respect to the hotel occupancy tax, or as otherwise provided by law.
(1) The tax shall be collected from the customer at the time of the presentation of the invoice for the rental, whether prior to delivery or after return of the vehicle.
(2) Monthly returns and remittances shall be filed by each business with the county clerk not later than the twentieth day of each month for the preceding month upon forms prescribed, prepared and furnished by the county.
(3) The county clerk in administering and enforcing the surcharge or tax shall additionally have those powers and duties with respect to collecting taxes as provided in this title, including, but not limited to, the collection of interest and penalties on businesses to the same extent and manner provided in § 67-4-1408 with respect to the hotel occupancy tax, or as otherwise provided by law.
(d) All revenue received by the county from this surcharge or tax shall be deposited into a county fund entitled the NBA arena fund which shall be used for the purpose of paying the costs incurred in modification or construction of an arena facility for a National Basketball Association (NBA) member professional basketball team. In the event that a city within the county participates jointly with the county in the contribution of capital expenditures for construction of such an arena facility, the revenue from this surcharge or tax shall be applied and allocated as follows: (1) The revenue from such tax shall first be applied to payment of bonded indebtedness, principal and interest, including expenses of the bond sale or sales, incurred by both the county and the city, or by either of them, for construction of such facilities and such revenue shall be allocated between the county and the city in such amounts necessary to meet the fiscal debt service requirements each year of both if there are sufficient funds. Such allocation shall be based upon actual bonded indebtedness incurred for such purpose, without deduction or offset due to any grant, credit or benefit that either government entity may be entitled by law to receive in connection with, or as a result of, such capital expenditures, such as any grant, credit or benefit accruing under the federal housing and urban renewal statutes; (2) Beginning on June 30 of the first full year of collection of this tax and on the same date of each year thereafter, the county shall calculate and pay over to the city that amount due such city from the proceeds of this surcharge or tax during the fiscal year then ending. Revenue derived from the levy of this tax during the first year in which the tax is levied shall be carried over for use in the next ensuing fiscal year in the payment of the allocable amounts to the county and the city; (3) If, at the close of any fiscal year, the revenue from such tax shall not be sufficient to meet the total debt service of both the county and the city for bonded indebtedness incurred for construction of such arena facility, the available revenue from this tax shall be allocated between the county and the city in the same direct proportion as such bonded indebtedness of each bears to the total of such bonded indebtedness of both, calculated upon the basis of the total principal amount of all such bonds that have been issued by the county and the city at any time prior to the close of that fiscal year; provided, that the balance, if any, of such debt service of either the county or the city not paid by revenue of this tax at the end of each fiscal year shall be accumulated by each in a separate deficit account that shall bear simple interest at the same rate as the bonds issued by each such governmental entity for construction of such facilities; (4) If the revenue from such tax in any fiscal year exceeds the total of such debt service requirements for that year, such surplus revenue thus accruing may be retained by the county as a sinking fund for such future debt service requirements or such surplus may be applied to the reduction of the deficit accounts of the county and the city in the same proportion as provided in subdivision (d)(3); (5) In the event the total bonded indebtedness incurred for construction of such arena facility by either the county or the municipality shall be paid in full as to bond principal and interest, including expenses of the bond sale or sales, and some portion of such bonded indebtedness of one (1) governmental entity remains unpaid, then that governmental entity whose bonded indebtedness has been satisfied in full shall cease, for the time being, to share in the revenue of this tax, and the total revenue from this tax shall be applied toward payment of such outstanding bonded indebtedness of the other governmental entity. For purposes of this subdivision (d)(5) only, the bonded indebtedness of either the county or the city shall be considered paid in full whenever the bonded indebtedness obligation to the holders of such obligation shall have been satisfied in full, even though such obligations may have been paid in part from sources other than the revenue from this tax.
(1) The revenue from such tax shall first be applied to payment of bonded indebtedness, principal and interest, including expenses of the bond sale or sales, incurred by both the county and the city, or by either of them, for construction of such facilities and such revenue shall be allocated between the county and the city in such amounts necessary to meet the fiscal debt service requirements each year of both if there are sufficient funds. Such allocation shall be based upon actual bonded indebtedness incurred for such purpose, without deduction or offset due to any grant, credit or benefit that either government entity may be entitled by law to receive in connection with, or as a result of, such capital expenditures, such as any grant, credit or benefit accruing under the federal housing and urban renewal statutes;
(2) Beginning on June 30 of the first full year of collection of this tax and on the same date of each year thereafter, the county shall calculate and pay over to the city that amount due such city from the proceeds of this surcharge or tax during the fiscal year then ending. Revenue derived from the levy of this tax during the first year in which the tax is levied shall be carried over for use in the next ensuing fiscal year in the payment of the allocable amounts to the county and the city;
(3) If, at the close of any fiscal year, the revenue from such tax shall not be sufficient to meet the total debt service of both the county and the city for bonded indebtedness incurred for construction of such arena facility, the available revenue from this tax shall be allocated between the county and the city in the same direct proportion as such bonded indebtedness of each bears to the total of such bonded indebtedness of both, calculated upon the basis of the total principal amount of all such bonds that have been issued by the county and the city at any time prior to the close of that fiscal year; provided, that the balance, if any, of such debt service of either the county or the city not paid by revenue of this tax at the end of each fiscal year shall be accumulated by each in a separate deficit account that shall bear simple interest at the same rate as the bonds issued by each such governmental entity for construction of such facilities;
(4) If the revenue from such tax in any fiscal year exceeds the total of such debt service requirements for that year, such surplus revenue thus accruing may be retained by the county as a sinking fund for such future debt service requirements or such surplus may be applied to the reduction of the deficit accounts of the county and the city in the same proportion as provided in subdivision (d)(3);
(5) In the event the total bonded indebtedness incurred for construction of such arena facility by either the county or the municipality shall be paid in full as to bond principal and interest, including expenses of the bond sale or sales, and some portion of such bonded indebtedness of one (1) governmental entity remains unpaid, then that governmental entity whose bonded indebtedness has been satisfied in full shall cease, for the time being, to share in the revenue of this tax, and the total revenue from this tax shall be applied toward payment of such outstanding bonded indebtedness of the other governmental entity. For purposes of this subdivision (d)(5) only, the bonded indebtedness of either the county or the city shall be considered paid in full whenever the bonded indebtedness obligation to the holders of such obligation shall have been satisfied in full, even though such obligations may have been paid in part from sources other than the revenue from this tax.
(e) Upon the total of such bonded indebtedness of both the county and the city being paid in full, including principal and interest, and including expenses of the bond sale or sales, then the revenue from this surcharge or tax, together with any surplus revenue accumulated in accordance with subdivision (d)(4), shall next be applied to the county and the city's accumulated deficit accounts as provided in subdivision (d)(3). For purposes of this subsection (e) only, the revenue and surplus, if any, shall be allocated between the county and the city in the same direct proportion that such deficit account of each bears to the total of such deficit accounts of both governmental entities. Upon one (1) of such governmental entities being reimbursed in full, including principal and interest on such deficit account, with a balance of the deficit account of the other governmental entity remaining unreimbursed, then the total revenue from this surcharge or tax shall, for the time being, be applied to reimbursement of the deficit account of that governmental entity whose account remains unpaid.
(f) When both the county and the municipality shall have been reimbursed in full for principal and interest for such deficit accounts, in accordance with subsection (e), then the revenue from this tax shall next be applied to reimburse both the county and the city for capital expenditures for construction of such facilities made from sources other than the proceeds of bonded indebtedness, including, but not limited to, capital expenditures made from general revenues, sinking funds for capital improvements, and contributions in-kind of real or personal property. For purposes of this subsection (f) only, the revenue from this tax or surcharge, together with and including any surplus in the NBA arena fund, shall be allocated fifty percent (50%) to the county and fifty percent (50%) to the city. When either of such governmental entities shall be reimbursed in full for all such capital expenditures for construction of such facilities, then the total revenue from this tax or surcharge shall be applied to reimbursement of the other governmental entity for such capital expenditures. Upon both the county and the municipality being reimbursed in full for capital expenditures for construction of such facilities, the county's taxing resolution shall be repealed and this surcharge or tax shall no longer be levied; provided, that any funds remaining in the NBA arena fund, after all obligations imposed under this section shall have been fulfilled, shall be paid over to any governmental board or agency responsible for operation of the arena facility for use by it in the promotion and advertisement of the auditorium convention center facilities.
(g) Notwithstanding any other provision of this section to the contrary, in the event that the county and a city within the county shall create or have created a sports authority pursuant to title 7, chapter 67, and such sports authority issues bonds, including refunding bonds, for the purpose of paying the costs incurred in the modification or construction of an arena facility for an NBA member professional basketball team, then all revenues received by the county from the surcharge or tax deposited into the NBA arena fund shall be transferred no less than monthly to a fund of the sports authority to be applied to the punctual payment of the principal and interest on such bonds, required reserves, administrative costs, and capital repair or improvement costs payable by the sports authority in connection with the arena facilities. In the event the revenue from such tax deposited with the sports authority in any fiscal year exceeds the payment of principal and interest on such bonds, required reserves, administrative costs and capital repair or improvement costs payable by the sports authority in such year, then such surplus revenue shall be deposited with the sports authority to be held in a fund to be applied to such future costs of the sports authority. In the event the total bonded indebtedness incurred for the construction of such arena facility by the sports authority shall be paid in full as to bond principal and interest, including expenses of the bond sale or sales and other remaining costs payable by the sports authority in connection with such arena facility, then the total revenue from this tax shall be applied in the manner set forth in subsection (d), and shall terminate at the time set forth in subsection (f). For purposes of this subsection (g) only, the bonded indebtedness of the sports authority shall be considered paid in full whenever the bonded indebtedness obligation to the holders of such obligation shall have been satisfied in full, even though such obligation may have been paid in part from sources other than the revenue of this tax.
(h) Notwithstanding this section or another law to the contrary, the allocation of revenue from the surcharge or tax provided in subsections (d)-(g) must continue until June 30, 2059.
Amended by 2023 Tenn. Acts, ch. 272, s 1, eff. 4/28/2023.
Acts 2001, ch. 344, § 1; 2002, ch. 492, §§ 1, 2.
Tenn. Code Ann. § 67-4-1021 — TN Code / Title 67 / Chapter 4 / Section 67-4-1021
Contraband - Procedure after seizure
Status: in_force

(a) In all cases of seizure of any tobacco products or other property subject to forfeiture under this part, the officer or other person making the seizure shall proceed as follows: (1) (A) Upon confiscation, or as soon thereafter as practicable, written notice shall be given by the department to the person from whom the confiscation was made, and to all others with a legal interest in the property confiscated who are either made known to the department or who, by a reasonable examination of public records of titles and liens, should have been discovered; (B) The notice shall state a description of the property confiscated, the reason for confiscation, the method for seeking recovery, the time limit for seeking recovery, and the result of failure to seek or obtain recovery by the designated method; (C) Such notice may be by personal delivery or by mail, either of which may be made to the last known address of the interested party; (2) All such property seized and confiscated under this part shall be sold at public sale by the department of general services, when the property has been turned over to it by the commissioner of revenue, as authorized by law under title 12, chapter 2, part 2; (3) In the case of any contraband property seized by any law enforcement officer of any incorporated municipality or of any county and turned over to the department of revenue for confiscation, there shall be paid to the municipality or to the county served by such officer fifty percent (50%) of the net proceeds thereof; and (4) (A) Any person claiming any property so seized as contraband goods may, within ten (10) days from the date of seizure, and after executing a bond for costs with one (1) or more good and solvent sureties in the sum of two hundred fifty dollars ($250), made payable to the state of Tennessee, or upon executing a pauper's oath as required by law, file with the commissioner at Nashville a claim in writing, requesting a hearing and stating the person's interest in the articles seized; (B) The commissioner shall set a date for a hearing within ten (10) days from the day the claim is filed; (C) The commissioner is empowered to subpoena witnesses and compel their attendance at hearings authorized under this subdivision (a)(4); (D) All parties to the proceeding, including the person claiming such property, shall have the right to have subpoenas issued by the commissioner to compel the attendance of all witnesses deemed by such parties to be necessary for a full and complete hearing; (E) All witnesses shall be entitled to the witness fees and mileage provided by law for legal witnesses, which fees and mileage shall be paid as a part of the costs of such proceeding. (b) In any hearing convened upon proper petition of an interested party, the initial burden shall be upon the state to show by a preponderance of the evidence that the property in question was of such nature or was used in such manner as to be declared as contraband. Upon meeting this burden, the property shall be forfeited as provided by law, unless the claimant shall prove that the claimant is nevertheless qualified under this part, or otherwise, to recover the property in question. (c) (1) In the event the ruling of the commissioner is favorable to the claimant, the commissioner shall deliver to the claimant the tobacco products or property so seized. (2) If the ruling of the commissioner is adverse to the claimant, the sale of such contraband goods shall be by the department of general services as provided by subsection (a). (3) The expenses of storage, transportation, and other costs shall be adjudged as a part of the cost of the proceeding in such manner as the commissioner shall fix. (d) Pending any proceeding to recover any tobacco product, vending machine, vehicle, aircraft or boat seized under this part, the commissioner may order delivery of such item to any claimant who shall establish the claimant's right to immediate possession of the tobacco product, vending machine, vehicle, aircraft or boat, and who shall execute, with one (1) or more sureties approved by the commissioner, and deliver to the commissioner, a bond in favor of the state of Tennessee for the payment of a sum double the appraised value of the tobacco product, vending machine, vehicle, aircraft or boat as of the time of the hearing; and conditioned further, that if the tobacco product, vending machine, vehicle, aircraft or boat is not returned at the time of hearing, the bond shall stand in lieu of and be forfeited in the same manner as such tobacco product, vending machine, vehicle, aircraft or boat. (e) (1) The commissioner may personally hold such hearings as the commissioner may deem proper. (2) In addition to a personally held hearing, the commissioner is authorized to designate a hearing officer who may hold such hearings in the place of and in the absence of the commissioner. (3) Such hearing officer shall make findings of fact, conclusions of law and proposed order based on the hearing. If the commissioner concurs, the commissioner shall issue the order; or the commissioner may, upon review of the record, make such findings, conclusions and issue such order as in the commissioner's discretion the record justifies. (4) At all hearings provided for in this section, the commissioner shall provide a stenographer or court reporter to take a stenographic record of the evidence adduced at such hearing. The claimant or protestant shall be entitled to a copy of the stenographic record, upon application for the record, and upon paying the reasonable cost of the record to be fixed by the commissioner. (f) The action of the commissioner may be reviewed by petition for common law writ of certiorari, addressed to the chancery or circuit court of Davidson County, which petition shall be filed within ten (10) days from the date the order of the commissioner is made. (g) (1) Immediately upon the grant of the writ of certiorari, the commissioner shall cause to be made, certified and forwarded to the court a complete transcript of the proceedings in the cause, which shall contain all the proof submitted before the commissioner. (2) All defendants named in the petition desiring to make defense shall answer or otherwise plead to the petition within ten (10) days from the date of the filing of the transcript, unless the time be extended by the court. (h) (1) The decision of the commissioner shall be reviewed by the circuit court solely upon the pleadings and the transcript of the proceedings before the commissioner, and neither party shall be entitled to introduce any additional evidence in the circuit court. (2) The confiscated goods shall not be sold pending such review, but shall be stored by the department until the final disposition of the case, unless bond has been posted as elsewhere provided in subsection (a). (i) (1) Within the discretion of the commissioner, the claimant may be awarded possession of the confiscated goods pending the decision of the circuit court under the petition of certiorari; provided, that the claimant shall be required to execute a bond payable to the state of Tennessee in an amount double the value of the property seized, the sureties to be approved by the commissioner. (2) The condition of the bond shall be that the obligors shall pay to the state, through the department, the full value of the goods or property seized, unless upon certiorari the decision of the commissioner shall be reversed and the property awarded to the claimant. (j) (1) Either party dissatisfied with the judgment or decree of the circuit court may, upon giving bond as required in other suits, appeal and have a reexamination, in the appellate court, of the whole matter of law and fact appearing in the record. (2) When any such appeal is made, the clerk of the circuit court in which such suit was pending shall include as a part of the record the original certified transcript of the proceedings had before the commissioner when identified by the trial judge instead of a bill of exceptions, which need not be made and filed. (3) The appeal shall be advanced upon the docket of the appellate court as one of such precedence, and heard as promptly as practicable. (k) If no claim is interposed, such tobacco products or other property shall be forfeited without further proceedings and the property shall be sold as provided in this section. (l) The procedure in subsection (j) is the sole remedy of any claimant, and no court shall have jurisdiction to interfere with the remedy by replevin, injunction, supersedeas or in any other manner. (m) (1) Whenever, in any proceeding under this section, a claim is filed for any vending machine, vehicle, aircraft or boat seized, as provided in this section, by an owner or other person asserting the interest of the owner, the commissioner shall not allow the claim, unless and until the claimant proves that: (A) The claimant has an interest in such property that the claimant acquired in good faith; and (B) The claimant had at no time any knowledge or reason to believe that the seized item was being or would be used in the violation of the laws of the United States or of this state relating to tobacco products. (2) Whenever, in any proceeding under this section, a claim is filed for any property seized, as provided in this section, by a person who is the holder of a security interest or other claim arising out of a contract or agreement, the commissioner shall not allow the claim, unless and until the claimant proves that the claimant has an interest in such property that the claimant acquired in good faith. An interest that is acquired in the ordinary course of business shall be presumed to be in good faith, unless the commissioner receives evidence that the holder of the security interest had knowledge, at the time the interest attached, of the intended illegal use of the vehicle or was a co-conspirator in furtherance of the illegal activity. A holder of a security interest that is other than a natural person shall be considered a co-conspirator for purposes of this section, if evidence shows that an officer, employee or agent of the holder acting within the scope of employment is a co-conspirator, and the holder either: (A) Has actual knowledge of the illegal activities of the officer, employee or agent from an individual other than the officer, employee or agent and fails to take appropriate action; or (B) Has failed to reasonably supervise or monitor the activities of the holder's officer, employee or agent. (3) In the event the interest of the owner is forfeited as provided in subdivision (m)(1) and the interest of the holder of a security interest is not forfeited as provided in subdivision (m)(2), the commissioner may, at the request of the holder of such interest, return the property to the holder for disposition in accordance with the applicable security agreement or other contract. If the commissioner does not return the property to the holder, the forfeiture shall be subject to the holder's interest. (4) An owner whose interest is forfeited after being arrested for or charged with any felony shall be ineligible to purchase the property from, or to bid at any sale of the property by, the commissioner or any seizing agency. The owner whose interest is forfeited after being arrested for or charged with any felony shall also be ineligible to redeem the property from, or to bid at any sale of the property by, any holder of a security interest acting pursuant to the agreement contract or title 47, chapter 9. Acts 1937, ch. 133, § 7; 1937, ch. 311, §§ 1, 2; mod. C. Supp. 1950, § 1238.4 (Williams, § 1213.7); Acts 1963, ch. 327, § 6; 1970, ch. 407, § 5; 1972, ch. 457, § 5; 1973, ch. 68, § 4; 1973, ch. 84, § 4; T.C.A. (orig. ed.), § 67-3123; Acts 1989, ch. 147, § 7; 1990, ch. 1037, § 3; 1998, ch. 594, § 1.
(a) In all cases of seizure of any tobacco products or other property subject to forfeiture under this part, the officer or other person making the seizure shall proceed as follows: (1) (A) Upon confiscation, or as soon thereafter as practicable, written notice shall be given by the department to the person from whom the confiscation was made, and to all others with a legal interest in the property confiscated who are either made known to the department or who, by a reasonable examination of public records of titles and liens, should have been discovered; (B) The notice shall state a description of the property confiscated, the reason for confiscation, the method for seeking recovery, the time limit for seeking recovery, and the result of failure to seek or obtain recovery by the designated method; (C) Such notice may be by personal delivery or by mail, either of which may be made to the last known address of the interested party; (2) All such property seized and confiscated under this part shall be sold at public sale by the department of general services, when the property has been turned over to it by the commissioner of revenue, as authorized by law under title 12, chapter 2, part 2; (3) In the case of any contraband property seized by any law enforcement officer of any incorporated municipality or of any county and turned over to the department of revenue for confiscation, there shall be paid to the municipality or to the county served by such officer fifty percent (50%) of the net proceeds thereof; and (4) (A) Any person claiming any property so seized as contraband goods may, within ten (10) days from the date of seizure, and after executing a bond for costs with one (1) or more good and solvent sureties in the sum of two hundred fifty dollars ($250), made payable to the state of Tennessee, or upon executing a pauper's oath as required by law, file with the commissioner at Nashville a claim in writing, requesting a hearing and stating the person's interest in the articles seized; (B) The commissioner shall set a date for a hearing within ten (10) days from the day the claim is filed; (C) The commissioner is empowered to subpoena witnesses and compel their attendance at hearings authorized under this subdivision (a)(4); (D) All parties to the proceeding, including the person claiming such property, shall have the right to have subpoenas issued by the commissioner to compel the attendance of all witnesses deemed by such parties to be necessary for a full and complete hearing; (E) All witnesses shall be entitled to the witness fees and mileage provided by law for legal witnesses, which fees and mileage shall be paid as a part of the costs of such proceeding.
(1) (A) Upon confiscation, or as soon thereafter as practicable, written notice shall be given by the department to the person from whom the confiscation was made, and to all others with a legal interest in the property confiscated who are either made known to the department or who, by a reasonable examination of public records of titles and liens, should have been discovered; (B) The notice shall state a description of the property confiscated, the reason for confiscation, the method for seeking recovery, the time limit for seeking recovery, and the result of failure to seek or obtain recovery by the designated method; (C) Such notice may be by personal delivery or by mail, either of which may be made to the last known address of the interested party;
(A) Upon confiscation, or as soon thereafter as practicable, written notice shall be given by the department to the person from whom the confiscation was made, and to all others with a legal interest in the property confiscated who are either made known to the department or who, by a reasonable examination of public records of titles and liens, should have been discovered;
(B) The notice shall state a description of the property confiscated, the reason for confiscation, the method for seeking recovery, the time limit for seeking recovery, and the result of failure to seek or obtain recovery by the designated method;
(C) Such notice may be by personal delivery or by mail, either of which may be made to the last known address of the interested party;
(2) All such property seized and confiscated under this part shall be sold at public sale by the department of general services, when the property has been turned over to it by the commissioner of revenue, as authorized by law under title 12, chapter 2, part 2;
(3) In the case of any contraband property seized by any law enforcement officer of any incorporated municipality or of any county and turned over to the department of revenue for confiscation, there shall be paid to the municipality or to the county served by such officer fifty percent (50%) of the net proceeds thereof; and
(4) (A) Any person claiming any property so seized as contraband goods may, within ten (10) days from the date of seizure, and after executing a bond for costs with one (1) or more good and solvent sureties in the sum of two hundred fifty dollars ($250), made payable to the state of Tennessee, or upon executing a pauper's oath as required by law, file with the commissioner at Nashville a claim in writing, requesting a hearing and stating the person's interest in the articles seized; (B) The commissioner shall set a date for a hearing within ten (10) days from the day the claim is filed; (C) The commissioner is empowered to subpoena witnesses and compel their attendance at hearings authorized under this subdivision (a)(4); (D) All parties to the proceeding, including the person claiming such property, shall have the right to have subpoenas issued by the commissioner to compel the attendance of all witnesses deemed by such parties to be necessary for a full and complete hearing; (E) All witnesses shall be entitled to the witness fees and mileage provided by law for legal witnesses, which fees and mileage shall be paid as a part of the costs of such proceeding.
(A) Any person claiming any property so seized as contraband goods may, within ten (10) days from the date of seizure, and after executing a bond for costs with one (1) or more good and solvent sureties in the sum of two hundred fifty dollars ($250), made payable to the state of Tennessee, or upon executing a pauper's oath as required by law, file with the commissioner at Nashville a claim in writing, requesting a hearing and stating the person's interest in the articles seized;
(B) The commissioner shall set a date for a hearing within ten (10) days from the day the claim is filed;
(C) The commissioner is empowered to subpoena witnesses and compel their attendance at hearings authorized under this subdivision (a)(4);
(D) All parties to the proceeding, including the person claiming such property, shall have the right to have subpoenas issued by the commissioner to compel the attendance of all witnesses deemed by such parties to be necessary for a full and complete hearing;
(E) All witnesses shall be entitled to the witness fees and mileage provided by law for legal witnesses, which fees and mileage shall be paid as a part of the costs of such proceeding.
(b) In any hearing convened upon proper petition of an interested party, the initial burden shall be upon the state to show by a preponderance of the evidence that the property in question was of such nature or was used in such manner as to be declared as contraband. Upon meeting this burden, the property shall be forfeited as provided by law, unless the claimant shall prove that the claimant is nevertheless qualified under this part, or otherwise, to recover the property in question.
(c) (1) In the event the ruling of the commissioner is favorable to the claimant, the commissioner shall deliver to the claimant the tobacco products or property so seized. (2) If the ruling of the commissioner is adverse to the claimant, the sale of such contraband goods shall be by the department of general services as provided by subsection (a). (3) The expenses of storage, transportation, and other costs shall be adjudged as a part of the cost of the proceeding in such manner as the commissioner shall fix.
(1) In the event the ruling of the commissioner is favorable to the claimant, the commissioner shall deliver to the claimant the tobacco products or property so seized.
(2) If the ruling of the commissioner is adverse to the claimant, the sale of such contraband goods shall be by the department of general services as provided by subsection (a).
(3) The expenses of storage, transportation, and other costs shall be adjudged as a part of the cost of the proceeding in such manner as the commissioner shall fix.
(d) Pending any proceeding to recover any tobacco product, vending machine, vehicle, aircraft or boat seized under this part, the commissioner may order delivery of such item to any claimant who shall establish the claimant's right to immediate possession of the tobacco product, vending machine, vehicle, aircraft or boat, and who shall execute, with one (1) or more sureties approved by the commissioner, and deliver to the commissioner, a bond in favor of the state of Tennessee for the payment of a sum double the appraised value of the tobacco product, vending machine, vehicle, aircraft or boat as of the time of the hearing; and conditioned further, that if the tobacco product, vending machine, vehicle, aircraft or boat is not returned at the time of hearing, the bond shall stand in lieu of and be forfeited in the same manner as such tobacco product, vending machine, vehicle, aircraft or boat.
(e) (1) The commissioner may personally hold such hearings as the commissioner may deem proper. (2) In addition to a personally held hearing, the commissioner is authorized to designate a hearing officer who may hold such hearings in the place of and in the absence of the commissioner. (3) Such hearing officer shall make findings of fact, conclusions of law and proposed order based on the hearing. If the commissioner concurs, the commissioner shall issue the order; or the commissioner may, upon review of the record, make such findings, conclusions and issue such order as in the commissioner's discretion the record justifies. (4) At all hearings provided for in this section, the commissioner shall provide a stenographer or court reporter to take a stenographic record of the evidence adduced at such hearing. The claimant or protestant shall be entitled to a copy of the stenographic record, upon application for the record, and upon paying the reasonable cost of the record to be fixed by the commissioner.
(1) The commissioner may personally hold such hearings as the commissioner may deem proper.
(2) In addition to a personally held hearing, the commissioner is authorized to designate a hearing officer who may hold such hearings in the place of and in the absence of the commissioner.
(3) Such hearing officer shall make findings of fact, conclusions of law and proposed order based on the hearing. If the commissioner concurs, the commissioner shall issue the order; or the commissioner may, upon review of the record, make such findings, conclusions and issue such order as in the commissioner's discretion the record justifies.
(4) At all hearings provided for in this section, the commissioner shall provide a stenographer or court reporter to take a stenographic record of the evidence adduced at such hearing. The claimant or protestant shall be entitled to a copy of the stenographic record, upon application for the record, and upon paying the reasonable cost of the record to be fixed by the commissioner.
(f) The action of the commissioner may be reviewed by petition for common law writ of certiorari, addressed to the chancery or circuit court of Davidson County, which petition shall be filed within ten (10) days from the date the order of the commissioner is made.
(g) (1) Immediately upon the grant of the writ of certiorari, the commissioner shall cause to be made, certified and forwarded to the court a complete transcript of the proceedings in the cause, which shall contain all the proof submitted before the commissioner. (2) All defendants named in the petition desiring to make defense shall answer or otherwise plead to the petition within ten (10) days from the date of the filing of the transcript, unless the time be extended by the court.
(1) Immediately upon the grant of the writ of certiorari, the commissioner shall cause to be made, certified and forwarded to the court a complete transcript of the proceedings in the cause, which shall contain all the proof submitted before the commissioner.
(2) All defendants named in the petition desiring to make defense shall answer or otherwise plead to the petition within ten (10) days from the date of the filing of the transcript, unless the time be extended by the court.
(h) (1) The decision of the commissioner shall be reviewed by the circuit court solely upon the pleadings and the transcript of the proceedings before the commissioner, and neither party shall be entitled to introduce any additional evidence in the circuit court. (2) The confiscated goods shall not be sold pending such review, but shall be stored by the department until the final disposition of the case, unless bond has been posted as elsewhere provided in subsection (a).
(1) The decision of the commissioner shall be reviewed by the circuit court solely upon the pleadings and the transcript of the proceedings before the commissioner, and neither party shall be entitled to introduce any additional evidence in the circuit court.
(2) The confiscated goods shall not be sold pending such review, but shall be stored by the department until the final disposition of the case, unless bond has been posted as elsewhere provided in subsection (a).
(i) (1) Within the discretion of the commissioner, the claimant may be awarded possession of the confiscated goods pending the decision of the circuit court under the petition of certiorari; provided, that the claimant shall be required to execute a bond payable to the state of Tennessee in an amount double the value of the property seized, the sureties to be approved by the commissioner. (2) The condition of the bond shall be that the obligors shall pay to the state, through the department, the full value of the goods or property seized, unless upon certiorari the decision of the commissioner shall be reversed and the property awarded to the claimant.
(1) Within the discretion of the commissioner, the claimant may be awarded possession of the confiscated goods pending the decision of the circuit court under the petition of certiorari; provided, that the claimant shall be required to execute a bond payable to the state of Tennessee in an amount double the value of the property seized, the sureties to be approved by the commissioner.
(2) The condition of the bond shall be that the obligors shall pay to the state, through the department, the full value of the goods or property seized, unless upon certiorari the decision of the commissioner shall be reversed and the property awarded to the claimant.
(j) (1) Either party dissatisfied with the judgment or decree of the circuit court may, upon giving bond as required in other suits, appeal and have a reexamination, in the appellate court, of the whole matter of law and fact appearing in the record. (2) When any such appeal is made, the clerk of the circuit court in which such suit was pending shall include as a part of the record the original certified transcript of the proceedings had before the commissioner when identified by the trial judge instead of a bill of exceptions, which need not be made and filed. (3) The appeal shall be advanced upon the docket of the appellate court as one of such precedence, and heard as promptly as practicable.
(1) Either party dissatisfied with the judgment or decree of the circuit court may, upon giving bond as required in other suits, appeal and have a reexamination, in the appellate court, of the whole matter of law and fact appearing in the record.
(2) When any such appeal is made, the clerk of the circuit court in which such suit was pending shall include as a part of the record the original certified transcript of the proceedings had before the commissioner when identified by the trial judge instead of a bill of exceptions, which need not be made and filed.
(3) The appeal shall be advanced upon the docket of the appellate court as one of such precedence, and heard as promptly as practicable.
(k) If no claim is interposed, such tobacco products or other property shall be forfeited without further proceedings and the property shall be sold as provided in this section.
(l) The procedure in subsection (j) is the sole remedy of any claimant, and no court shall have jurisdiction to interfere with the remedy by replevin, injunction, supersedeas or in any other manner.
(m) (1) Whenever, in any proceeding under this section, a claim is filed for any vending machine, vehicle, aircraft or boat seized, as provided in this section, by an owner or other person asserting the interest of the owner, the commissioner shall not allow the claim, unless and until the claimant proves that: (A) The claimant has an interest in such property that the claimant acquired in good faith; and (B) The claimant had at no time any knowledge or reason to believe that the seized item was being or would be used in the violation of the laws of the United States or of this state relating to tobacco products. (2) Whenever, in any proceeding under this section, a claim is filed for any property seized, as provided in this section, by a person who is the holder of a security interest or other claim arising out of a contract or agreement, the commissioner shall not allow the claim, unless and until the claimant proves that the claimant has an interest in such property that the claimant acquired in good faith. An interest that is acquired in the ordinary course of business shall be presumed to be in good faith, unless the commissioner receives evidence that the holder of the security interest had knowledge, at the time the interest attached, of the intended illegal use of the vehicle or was a co-conspirator in furtherance of the illegal activity. A holder of a security interest that is other than a natural person shall be considered a co-conspirator for purposes of this section, if evidence shows that an officer, employee or agent of the holder acting within the scope of employment is a co-conspirator, and the holder either: (A) Has actual knowledge of the illegal activities of the officer, employee or agent from an individual other than the officer, employee or agent and fails to take appropriate action; or (B) Has failed to reasonably supervise or monitor the activities of the holder's officer, employee or agent. (3) In the event the interest of the owner is forfeited as provided in subdivision (m)(1) and the interest of the holder of a security interest is not forfeited as provided in subdivision (m)(2), the commissioner may, at the request of the holder of such interest, return the property to the holder for disposition in accordance with the applicable security agreement or other contract. If the commissioner does not return the property to the holder, the forfeiture shall be subject to the holder's interest. (4) An owner whose interest is forfeited after being arrested for or charged with any felony shall be ineligible to purchase the property from, or to bid at any sale of the property by, the commissioner or any seizing agency. The owner whose interest is forfeited after being arrested for or charged with any felony shall also be ineligible to redeem the property from, or to bid at any sale of the property by, any holder of a security interest acting pursuant to the agreement contract or title 47, chapter 9.
(1) Whenever, in any proceeding under this section, a claim is filed for any vending machine, vehicle, aircraft or boat seized, as provided in this section, by an owner or other person asserting the interest of the owner, the commissioner shall not allow the claim, unless and until the claimant proves that: (A) The claimant has an interest in such property that the claimant acquired in good faith; and (B) The claimant had at no time any knowledge or reason to believe that the seized item was being or would be used in the violation of the laws of the United States or of this state relating to tobacco products.
(A) The claimant has an interest in such property that the claimant acquired in good faith; and
(B) The claimant had at no time any knowledge or reason to believe that the seized item was being or would be used in the violation of the laws of the United States or of this state relating to tobacco products.
(2) Whenever, in any proceeding under this section, a claim is filed for any property seized, as provided in this section, by a person who is the holder of a security interest or other claim arising out of a contract or agreement, the commissioner shall not allow the claim, unless and until the claimant proves that the claimant has an interest in such property that the claimant acquired in good faith. An interest that is acquired in the ordinary course of business shall be presumed to be in good faith, unless the commissioner receives evidence that the holder of the security interest had knowledge, at the time the interest attached, of the intended illegal use of the vehicle or was a co-conspirator in furtherance of the illegal activity. A holder of a security interest that is other than a natural person shall be considered a co-conspirator for purposes of this section, if evidence shows that an officer, employee or agent of the holder acting within the scope of employment is a co-conspirator, and the holder either: (A) Has actual knowledge of the illegal activities of the officer, employee or agent from an individual other than the officer, employee or agent and fails to take appropriate action; or (B) Has failed to reasonably supervise or monitor the activities of the holder's officer, employee or agent.
(A) Has actual knowledge of the illegal activities of the officer, employee or agent from an individual other than the officer, employee or agent and fails to take appropriate action; or
(B) Has failed to reasonably supervise or monitor the activities of the holder's officer, employee or agent.
(3) In the event the interest of the owner is forfeited as provided in subdivision (m)(1) and the interest of the holder of a security interest is not forfeited as provided in subdivision (m)(2), the commissioner may, at the request of the holder of such interest, return the property to the holder for disposition in accordance with the applicable security agreement or other contract. If the commissioner does not return the property to the holder, the forfeiture shall be subject to the holder's interest.
(4) An owner whose interest is forfeited after being arrested for or charged with any felony shall be ineligible to purchase the property from, or to bid at any sale of the property by, the commissioner or any seizing agency. The owner whose interest is forfeited after being arrested for or charged with any felony shall also be ineligible to redeem the property from, or to bid at any sale of the property by, any holder of a security interest acting pursuant to the agreement contract or title 47, chapter 9.
Acts 1937, ch. 133, § 7; 1937, ch. 311, §§ 1, 2; mod. C. Supp. 1950, § 1238.4 (Williams, § 1213.7); Acts 1963, ch. 327, § 6; 1970, ch. 407, § 5; 1972, ch. 457, § 5; 1973, ch. 68, § 4; 1973, ch. 84, § 4; T.C.A. (orig. ed.), § 67-3123; Acts 1989, ch. 147, § 7; 1990, ch. 1037, § 3; 1998, ch. 594, § 1.
Tenn. Code Ann. § 67-6-385 — TN Code / Title 67 / Chapter 6 / Section 67-6-385
[Repealed]
Status: repealed

Repealed by 2021 Tenn. Acts, ch. 285, s 129, eff. 4/30/2021. Amended by 2019 Tenn. Acts, ch. 157, s 1, eff. 4/23/2019. Acts 2003 , ch. 357, § 53; 2004, ch. 959, § 68; 2005, ch. 311, § 1; 2007 , ch. 602, §§ 51, 154; 2009 , ch. 530, § 35; 2011 , ch. 72, § 1.
Repealed by 2021 Tenn. Acts, ch. 285, s 129, eff. 4/30/2021.
Amended by 2019 Tenn. Acts, ch. 157, s 1, eff. 4/23/2019.
Acts 2003 , ch. 357, § 53; 2004, ch. 959, § 68; 2005, ch. 311, § 1; 2007 , ch. 602, §§ 51, 154; 2009 , ch. 530, § 35; 2011 , ch. 72, § 1.
Tenn. Code Ann. § 67-5-2502 — TN Code / Title 67 / Chapter 5 / Section 67-5-2502
Notice of sale of land
Status: in_force

(a) (1) In the event of a sale under a decree of the court, the property shall be advertised in one (1) sale notice, which notice shall set out the names of the owners of the different tracts or parcels of land and describe the property and set out the amount of judgment against each defendant. The description of the property shall include a concise description, that means a reference to a deed book and page that contains a complete legal description of the property or the official property number as provided by § 67-5-806 , and may also include a common description of the property, which may include street name and number, map and parcel number, number of acres, or any other description which might help identify the property as it is commonly known. The purpose of the common description is to help identify the property that is described in the concise description. Any error or defect in the common description shall not in any way void any sale of the property; provided, that the concise description makes accurate reference to the last conveyance of the property by correct reference to a deed book and page or the official property number as provided by § 67-5-806 . (2) A notice of the tax sale shall be published at least once in a newspaper of general circulation in the county where the parcels are located, or, with the approval of the court, the notice may be published by printed handbills publicly posted in the county where the parcels are located in such manner as the court may determine will provide adequate public awareness of the sale. Any such publication shall first occur at least twenty (20) days before the sale date. (3) Notice to parties or others in delinquent tax suits and sales shall be governed by the Tennessee Rules of Civil Procedure, except as modified in this chapter or as they may be inconsistent with the statutory scheme for the collection of delinquent property taxes set out in this chapter, and may be forwarded to the address of an owner of the property that is on record in the office of the assessor of property. If there is any remainder after the proceeds of the sale have been distributed pursuant to § 67-5-2501 , the party receiving notice pursuant to this subdivision (a)(3) shall also be given notice of the amount of proceeds resulting from the sale, the division of such proceeds, and the remainder. (4) (A) A person, who is either expressly or impliedly authorized by another person to receive mail on behalf of the other person, is authorized to sign a receipt on behalf of the other person accepting registered or certified mail or correspondence delivered by an alternative delivery service, containing either a summons, complaint, or summary of the proceeding or a notice that has been or is to be filed in a tax proceeding. In every tax proceeding, the burden of proving by clear and convincing evidence that a person who signed such a receipt for a different person and was, in fact, at that time expressly prohibited in writing from accepting mail for the second person, shall be upon the person challenging the sufficiency of the service or notice. (B) Proof of delivery of summons, notice, or other correspondence filed or to be filed in the proceeding, by certified mail, return receipt requested, or by an alternative delivery service with return receipt requested, may also be proved by reference to the tracking records located on the website of the delivery service. (C) The failure of a person accepting the mail provided by subdivision (a)(4)(B) to fully complete the receipt with a legible signature, a printed name, and delivery date, creates a presumption that the receipt was executed by the addressee or a person with authority or implied authority to accept mail and service of process for the addressee. However, the presumption may be rebutted in the manner set out in subdivision (a)(4)(A). (5) (A) Service on or notice to a nominee or agent of an owner, where the nominee or agent is identifiable from information provided in the deed or deed of trust, shall constitute service on or notice to the owner. (B) Service on or notice to a nominee or agent of an owner, where the nominee or agent is identifiable from information provided in the deed or deed of trust, shall constitute service on or notice to all assignees of the owner if evidence of the assignment has not been recorded in the office of the register of deeds in the county where the parcel is located. (C) This subdivision (a)(5) is intended to be procedural and remedial in application and is made applicable retroactively to the extent allowed by law. (6) The clerk or special master conducting the sale may, on suggestion of the delinquent tax attorney, withdraw any parcel from the sale. (b) It is the responsibility of the property owner to register the property owner's name and address with the assessor of property of the county in which the land lies. (c) (1) For the purposes of this chapter, unless the context requires otherwise: (A) "Diligent effort to give actual notice of the proceedings" means a reasonable effort to give notice which is reasonably calculated, under all the circumstances and conditions, to apprise interested persons of the pendency of the proceedings in time to afford them an opportunity to prevent the loss of their interest in the parcel. Such effort shall be such as one desirous of actually informing the persons might reasonably adopt to accomplish it. Such effort does not, however, require that an interested person receive actual notice. Nor does it require the plaintiff to search records or sources of information in addition to that information available in the specific offices listed in subdivision (c)(2). The effort does not require the tax entity or delinquent tax attorney to obtain discovery as authorized by the Tennessee Rules of Civil Procedure, or otherwise; (B) "Interested person", "person owning an interest in a parcel" and "owner" means a person, including any governmental entity, that owns an interest in a parcel and includes a person, including any governmental entity, that holds a lien against a parcel or is the assignee of a holder of such a lien. "Interested person" also includes a person or entity named as nominee or agent of the owner of the obligation that is secured by the deed or a deed of trust and that is identifiable from information provided in the deed or a deed of trust, which shall include a mailing address or post office box of the nominee or agent. However, a person named as a trustee under a deed of trust, contract lien or security instrument, is not included in such definition unless the person has a separate interest in the parcel; (C) "Parcel" or "property" means a tract or item of real or personal property which is the subject of a judicial proceeding to obtain a personal judgment for the taxes owing or to enforce the lien securing the payment of delinquent property taxes by a sale of the tract or item; and (D) "Proceeding" or "tax proceeding" means a judicial proceeding filed by a governmental entity for the purpose of collecting delinquent property taxes owing the entity. The court shall have jurisdiction to determine all issues arising in the proceedings including issues arising before and after the confirmation of the sale of a parcel, including redemption, disposition of excess proceeds and all issues arising pursuant to § 67-5-2507 . (2) The delinquent tax attorney shall make a reasonable search of the public records in the offices of the assessor of property, trustee, the register of deeds, and the local office where wills are recorded, seeking to identify and locate all interested persons as to each parcel listed on the county and municipal delinquent tax lists filed in the cause. The court shall set a reasonable attorney's fee per parcel, as defined in subdivision (c)(1), per year of delinquent taxes owed and per taxing entity, for the services required by this subsection (c), which shall become an additional expense of the proceeding and shall be secured by the first lien in favor of the tax entity pursuant to § 67-5-2101 . The fee shall be charged to each pending parcel listed on the county and municipal delinquent tax lists filed in the tax proceeding and each parcel subsequently turned over for collection in a tax proceeding. (3) The delinquent tax attorney shall make a diligent effort to give actual notice of the proceedings to all interested persons, as identified by the searches described in subdivision (c)(2). (d) A tax sale notice, which shall be the same or substantially the same as the advertised notice, may be recorded in the register of deeds' office for the county in which the property is located upon the setting of the tax sale date. The recording cost shall be divided between the parcels of land listed in the tax sale notice and added as an additional court cost to each such parcel of land. This tax sale notice shall be recorded for informational purposes only and no release shall be required. (e) (1) Any owner of a surface interest in property overlying a mineral interest may record a declaration of the owner's interest in such land with the register of deeds in the county where the mineral interest is located. Declaration forms shall be available at the register's office and shall include the name of the owner of mineral interest beneath the surface. Declaration forms received by the register's office shall be recorded by the register in the dormant mineral interest record. Declaration forms shall be indexed under the names of the mineral interest owners as grantor or grantors and under the names of the surface owners as grantee or grantees. Recording the declaration of surface ownership shall entitle surface owners to receive notice described in subdivision (e)(2). (2) In the event of the sale of severed mineral interest property pursuant to § 67-5-2501 , the clerk of the court shall send, by certified return receipt mail, a notice of proceedings regarding the sale of that mineral interest to any owner of the surface interest who has recorded a declaration of surface ownership as described in subdivision (e)(1). (3) (A) The owner of surface interest who has recorded a declaration of surface ownership according to subdivision (e)(1), and who has received notice of delinquent tax proceedings according to this section may, within one hundred twenty (120) days after the sale pursuant to § 67-5-2501 , purchase the mineral interest beneath the owner's tract for a percentage of the total amount of such sale, which percentage shall be derived from the percentage that the owner's surface interest bears to the total surface area of the property connected with the mineral interest sold at such tax sale. (B) Such surface owner shall tender to the clerk of court such amount, including a pro-rated amount of the penalty and interest paid, at the same percentage rate. The clerk shall, within thirty (30) days of receipt of such amount pay the same amount to the person who purchased the mineral interest at the tax sale. The surface owner shall, in addition, pay the clerk for the clerk's services in such transaction. (f) Any sale under this section may be adjourned and rescheduled one (1) time for cause without an additional newspaper publication or decree, upon compliance with the following provisions: (1) The sale must be held within one (1) year of the originally scheduled date; (2) The postponement or adjournment must be to a specified date and time, and must be posted or announced at the date, time, and location of the scheduled sale date; and (3) If the postponement or adjournment is for more than thirty (30) days, notice of the new date, time, and location must be mailed no less than ten (10) calendar days prior to the sale date via regular mail to the parties to the suit, with a copy of such notice filed with the clerk of court. Amended by 2024 Tenn. Acts, ch. 967,s 32, eff. 5/21/2024. Amended by 2024 Tenn. Acts, ch. 967,s 22, eff. 5/21/2024. Amended by 2024 Tenn. Acts, ch. 967,s 6, eff. 5/21/2024. Amended by 2024 Tenn. Acts, ch. 967,s 4, eff. 5/21/2024. Amended by 2019 Tenn. Acts, ch. 170, s 4, eff. 4/18/2019. Amended by 2018 Tenn. Acts, ch. 778, Secs.s 4, s 5 eff. 4/19/2018. Amended by 2017 Tenn. Acts, ch. 299, s 9, eff. 7/1/2017. Amended by 2015 Tenn. Acts, ch. 213, s 3, eff. 7/1/2015. Amended by 2014 Tenn. Acts, ch. 883, s 9, eff. 7/1/2014. Amended by 2014 Tenn. Acts, ch. 883, s 10, eff. 7/1/2014. Amended by 2014 Tenn. Acts, ch. 599, s 1, eff. 7/1/2014. Amended by 2013 Tenn. Acts, ch. 353, s 17, eff. 5/13/2013. Acts 1923, ch. 77, § 12; Shan. Supp., § 913b21; Code 1932, § 1596; Acts 1976, ch. 695, § 1; 1980, ch. 629, § 1; T.C.A. (orig. ed.), § 67-2018; Acts 1984, ch. 661, § 1; 1984, ch. 868, § 1; 1987, ch. 282, § 3; 1987, ch. 346, § 8; 1988, ch. 636, §§ 17-19; 1991, ch. 470, § 3; 1994, ch. 579, §§ 2-6; 1996, ch. 787, § 3; 1998, ch. 894, § 1.
(a) (1) In the event of a sale under a decree of the court, the property shall be advertised in one (1) sale notice, which notice shall set out the names of the owners of the different tracts or parcels of land and describe the property and set out the amount of judgment against each defendant. The description of the property shall include a concise description, that means a reference to a deed book and page that contains a complete legal description of the property or the official property number as provided by § 67-5-806 , and may also include a common description of the property, which may include street name and number, map and parcel number, number of acres, or any other description which might help identify the property as it is commonly known. The purpose of the common description is to help identify the property that is described in the concise description. Any error or defect in the common description shall not in any way void any sale of the property; provided, that the concise description makes accurate reference to the last conveyance of the property by correct reference to a deed book and page or the official property number as provided by § 67-5-806 . (2) A notice of the tax sale shall be published at least once in a newspaper of general circulation in the county where the parcels are located, or, with the approval of the court, the notice may be published by printed handbills publicly posted in the county where the parcels are located in such manner as the court may determine will provide adequate public awareness of the sale. Any such publication shall first occur at least twenty (20) days before the sale date. (3) Notice to parties or others in delinquent tax suits and sales shall be governed by the Tennessee Rules of Civil Procedure, except as modified in this chapter or as they may be inconsistent with the statutory scheme for the collection of delinquent property taxes set out in this chapter, and may be forwarded to the address of an owner of the property that is on record in the office of the assessor of property. If there is any remainder after the proceeds of the sale have been distributed pursuant to § 67-5-2501 , the party receiving notice pursuant to this subdivision (a)(3) shall also be given notice of the amount of proceeds resulting from the sale, the division of such proceeds, and the remainder. (4) (A) A person, who is either expressly or impliedly authorized by another person to receive mail on behalf of the other person, is authorized to sign a receipt on behalf of the other person accepting registered or certified mail or correspondence delivered by an alternative delivery service, containing either a summons, complaint, or summary of the proceeding or a notice that has been or is to be filed in a tax proceeding. In every tax proceeding, the burden of proving by clear and convincing evidence that a person who signed such a receipt for a different person and was, in fact, at that time expressly prohibited in writing from accepting mail for the second person, shall be upon the person challenging the sufficiency of the service or notice. (B) Proof of delivery of summons, notice, or other correspondence filed or to be filed in the proceeding, by certified mail, return receipt requested, or by an alternative delivery service with return receipt requested, may also be proved by reference to the tracking records located on the website of the delivery service. (C) The failure of a person accepting the mail provided by subdivision (a)(4)(B) to fully complete the receipt with a legible signature, a printed name, and delivery date, creates a presumption that the receipt was executed by the addressee or a person with authority or implied authority to accept mail and service of process for the addressee. However, the presumption may be rebutted in the manner set out in subdivision (a)(4)(A). (5) (A) Service on or notice to a nominee or agent of an owner, where the nominee or agent is identifiable from information provided in the deed or deed of trust, shall constitute service on or notice to the owner. (B) Service on or notice to a nominee or agent of an owner, where the nominee or agent is identifiable from information provided in the deed or deed of trust, shall constitute service on or notice to all assignees of the owner if evidence of the assignment has not been recorded in the office of the register of deeds in the county where the parcel is located. (C) This subdivision (a)(5) is intended to be procedural and remedial in application and is made applicable retroactively to the extent allowed by law. (6) The clerk or special master conducting the sale may, on suggestion of the delinquent tax attorney, withdraw any parcel from the sale.
(1) In the event of a sale under a decree of the court, the property shall be advertised in one (1) sale notice, which notice shall set out the names of the owners of the different tracts or parcels of land and describe the property and set out the amount of judgment against each defendant. The description of the property shall include a concise description, that means a reference to a deed book and page that contains a complete legal description of the property or the official property number as provided by § 67-5-806 , and may also include a common description of the property, which may include street name and number, map and parcel number, number of acres, or any other description which might help identify the property as it is commonly known. The purpose of the common description is to help identify the property that is described in the concise description. Any error or defect in the common description shall not in any way void any sale of the property; provided, that the concise description makes accurate reference to the last conveyance of the property by correct reference to a deed book and page or the official property number as provided by § 67-5-806 .
(2) A notice of the tax sale shall be published at least once in a newspaper of general circulation in the county where the parcels are located, or, with the approval of the court, the notice may be published by printed handbills publicly posted in the county where the parcels are located in such manner as the court may determine will provide adequate public awareness of the sale. Any such publication shall first occur at least twenty (20) days before the sale date.
(3) Notice to parties or others in delinquent tax suits and sales shall be governed by the Tennessee Rules of Civil Procedure, except as modified in this chapter or as they may be inconsistent with the statutory scheme for the collection of delinquent property taxes set out in this chapter, and may be forwarded to the address of an owner of the property that is on record in the office of the assessor of property. If there is any remainder after the proceeds of the sale have been distributed pursuant to § 67-5-2501 , the party receiving notice pursuant to this subdivision (a)(3) shall also be given notice of the amount of proceeds resulting from the sale, the division of such proceeds, and the remainder.
(4) (A) A person, who is either expressly or impliedly authorized by another person to receive mail on behalf of the other person, is authorized to sign a receipt on behalf of the other person accepting registered or certified mail or correspondence delivered by an alternative delivery service, containing either a summons, complaint, or summary of the proceeding or a notice that has been or is to be filed in a tax proceeding. In every tax proceeding, the burden of proving by clear and convincing evidence that a person who signed such a receipt for a different person and was, in fact, at that time expressly prohibited in writing from accepting mail for the second person, shall be upon the person challenging the sufficiency of the service or notice. (B) Proof of delivery of summons, notice, or other correspondence filed or to be filed in the proceeding, by certified mail, return receipt requested, or by an alternative delivery service with return receipt requested, may also be proved by reference to the tracking records located on the website of the delivery service. (C) The failure of a person accepting the mail provided by subdivision (a)(4)(B) to fully complete the receipt with a legible signature, a printed name, and delivery date, creates a presumption that the receipt was executed by the addressee or a person with authority or implied authority to accept mail and service of process for the addressee. However, the presumption may be rebutted in the manner set out in subdivision (a)(4)(A).
(A) A person, who is either expressly or impliedly authorized by another person to receive mail on behalf of the other person, is authorized to sign a receipt on behalf of the other person accepting registered or certified mail or correspondence delivered by an alternative delivery service, containing either a summons, complaint, or summary of the proceeding or a notice that has been or is to be filed in a tax proceeding. In every tax proceeding, the burden of proving by clear and convincing evidence that a person who signed such a receipt for a different person and was, in fact, at that time expressly prohibited in writing from accepting mail for the second person, shall be upon the person challenging the sufficiency of the service or notice.
(B) Proof of delivery of summons, notice, or other correspondence filed or to be filed in the proceeding, by certified mail, return receipt requested, or by an alternative delivery service with return receipt requested, may also be proved by reference to the tracking records located on the website of the delivery service.
(C) The failure of a person accepting the mail provided by subdivision (a)(4)(B) to fully complete the receipt with a legible signature, a printed name, and delivery date, creates a presumption that the receipt was executed by the addressee or a person with authority or implied authority to accept mail and service of process for the addressee. However, the presumption may be rebutted in the manner set out in subdivision (a)(4)(A).
(5) (A) Service on or notice to a nominee or agent of an owner, where the nominee or agent is identifiable from information provided in the deed or deed of trust, shall constitute service on or notice to the owner. (B) Service on or notice to a nominee or agent of an owner, where the nominee or agent is identifiable from information provided in the deed or deed of trust, shall constitute service on or notice to all assignees of the owner if evidence of the assignment has not been recorded in the office of the register of deeds in the county where the parcel is located. (C) This subdivision (a)(5) is intended to be procedural and remedial in application and is made applicable retroactively to the extent allowed by law.
(A) Service on or notice to a nominee or agent of an owner, where the nominee or agent is identifiable from information provided in the deed or deed of trust, shall constitute service on or notice to the owner.
(B) Service on or notice to a nominee or agent of an owner, where the nominee or agent is identifiable from information provided in the deed or deed of trust, shall constitute service on or notice to all assignees of the owner if evidence of the assignment has not been recorded in the office of the register of deeds in the county where the parcel is located.
(C) This subdivision (a)(5) is intended to be procedural and remedial in application and is made applicable retroactively to the extent allowed by law.
(6) The clerk or special master conducting the sale may, on suggestion of the delinquent tax attorney, withdraw any parcel from the sale.
(b) It is the responsibility of the property owner to register the property owner's name and address with the assessor of property of the county in which the land lies.
(c) (1) For the purposes of this chapter, unless the context requires otherwise: (A) "Diligent effort to give actual notice of the proceedings" means a reasonable effort to give notice which is reasonably calculated, under all the circumstances and conditions, to apprise interested persons of the pendency of the proceedings in time to afford them an opportunity to prevent the loss of their interest in the parcel. Such effort shall be such as one desirous of actually informing the persons might reasonably adopt to accomplish it. Such effort does not, however, require that an interested person receive actual notice. Nor does it require the plaintiff to search records or sources of information in addition to that information available in the specific offices listed in subdivision (c)(2). The effort does not require the tax entity or delinquent tax attorney to obtain discovery as authorized by the Tennessee Rules of Civil Procedure, or otherwise; (B) "Interested person", "person owning an interest in a parcel" and "owner" means a person, including any governmental entity, that owns an interest in a parcel and includes a person, including any governmental entity, that holds a lien against a parcel or is the assignee of a holder of such a lien. "Interested person" also includes a person or entity named as nominee or agent of the owner of the obligation that is secured by the deed or a deed of trust and that is identifiable from information provided in the deed or a deed of trust, which shall include a mailing address or post office box of the nominee or agent. However, a person named as a trustee under a deed of trust, contract lien or security instrument, is not included in such definition unless the person has a separate interest in the parcel; (C) "Parcel" or "property" means a tract or item of real or personal property which is the subject of a judicial proceeding to obtain a personal judgment for the taxes owing or to enforce the lien securing the payment of delinquent property taxes by a sale of the tract or item; and (D) "Proceeding" or "tax proceeding" means a judicial proceeding filed by a governmental entity for the purpose of collecting delinquent property taxes owing the entity. The court shall have jurisdiction to determine all issues arising in the proceedings including issues arising before and after the confirmation of the sale of a parcel, including redemption, disposition of excess proceeds and all issues arising pursuant to § 67-5-2507 . (2) The delinquent tax attorney shall make a reasonable search of the public records in the offices of the assessor of property, trustee, the register of deeds, and the local office where wills are recorded, seeking to identify and locate all interested persons as to each parcel listed on the county and municipal delinquent tax lists filed in the cause. The court shall set a reasonable attorney's fee per parcel, as defined in subdivision (c)(1), per year of delinquent taxes owed and per taxing entity, for the services required by this subsection (c), which shall become an additional expense of the proceeding and shall be secured by the first lien in favor of the tax entity pursuant to § 67-5-2101 . The fee shall be charged to each pending parcel listed on the county and municipal delinquent tax lists filed in the tax proceeding and each parcel subsequently turned over for collection in a tax proceeding. (3) The delinquent tax attorney shall make a diligent effort to give actual notice of the proceedings to all interested persons, as identified by the searches described in subdivision (c)(2).
(1) For the purposes of this chapter, unless the context requires otherwise: (A) "Diligent effort to give actual notice of the proceedings" means a reasonable effort to give notice which is reasonably calculated, under all the circumstances and conditions, to apprise interested persons of the pendency of the proceedings in time to afford them an opportunity to prevent the loss of their interest in the parcel. Such effort shall be such as one desirous of actually informing the persons might reasonably adopt to accomplish it. Such effort does not, however, require that an interested person receive actual notice. Nor does it require the plaintiff to search records or sources of information in addition to that information available in the specific offices listed in subdivision (c)(2). The effort does not require the tax entity or delinquent tax attorney to obtain discovery as authorized by the Tennessee Rules of Civil Procedure, or otherwise; (B) "Interested person", "person owning an interest in a parcel" and "owner" means a person, including any governmental entity, that owns an interest in a parcel and includes a person, including any governmental entity, that holds a lien against a parcel or is the assignee of a holder of such a lien. "Interested person" also includes a person or entity named as nominee or agent of the owner of the obligation that is secured by the deed or a deed of trust and that is identifiable from information provided in the deed or a deed of trust, which shall include a mailing address or post office box of the nominee or agent. However, a person named as a trustee under a deed of trust, contract lien or security instrument, is not included in such definition unless the person has a separate interest in the parcel; (C) "Parcel" or "property" means a tract or item of real or personal property which is the subject of a judicial proceeding to obtain a personal judgment for the taxes owing or to enforce the lien securing the payment of delinquent property taxes by a sale of the tract or item; and (D) "Proceeding" or "tax proceeding" means a judicial proceeding filed by a governmental entity for the purpose of collecting delinquent property taxes owing the entity. The court shall have jurisdiction to determine all issues arising in the proceedings including issues arising before and after the confirmation of the sale of a parcel, including redemption, disposition of excess proceeds and all issues arising pursuant to § 67-5-2507 .
(A) "Diligent effort to give actual notice of the proceedings" means a reasonable effort to give notice which is reasonably calculated, under all the circumstances and conditions, to apprise interested persons of the pendency of the proceedings in time to afford them an opportunity to prevent the loss of their interest in the parcel. Such effort shall be such as one desirous of actually informing the persons might reasonably adopt to accomplish it. Such effort does not, however, require that an interested person receive actual notice. Nor does it require the plaintiff to search records or sources of information in addition to that information available in the specific offices listed in subdivision (c)(2). The effort does not require the tax entity or delinquent tax attorney to obtain discovery as authorized by the Tennessee Rules of Civil Procedure, or otherwise;
(B) "Interested person", "person owning an interest in a parcel" and "owner" means a person, including any governmental entity, that owns an interest in a parcel and includes a person, including any governmental entity, that holds a lien against a parcel or is the assignee of a holder of such a lien. "Interested person" also includes a person or entity named as nominee or agent of the owner of the obligation that is secured by the deed or a deed of trust and that is identifiable from information provided in the deed or a deed of trust, which shall include a mailing address or post office box of the nominee or agent. However, a person named as a trustee under a deed of trust, contract lien or security instrument, is not included in such definition unless the person has a separate interest in the parcel;
(C) "Parcel" or "property" means a tract or item of real or personal property which is the subject of a judicial proceeding to obtain a personal judgment for the taxes owing or to enforce the lien securing the payment of delinquent property taxes by a sale of the tract or item; and
(D) "Proceeding" or "tax proceeding" means a judicial proceeding filed by a governmental entity for the purpose of collecting delinquent property taxes owing the entity. The court shall have jurisdiction to determine all issues arising in the proceedings including issues arising before and after the confirmation of the sale of a parcel, including redemption, disposition of excess proceeds and all issues arising pursuant to § 67-5-2507 .
(2) The delinquent tax attorney shall make a reasonable search of the public records in the offices of the assessor of property, trustee, the register of deeds, and the local office where wills are recorded, seeking to identify and locate all interested persons as to each parcel listed on the county and municipal delinquent tax lists filed in the cause. The court shall set a reasonable attorney's fee per parcel, as defined in subdivision (c)(1), per year of delinquent taxes owed and per taxing entity, for the services required by this subsection (c), which shall become an additional expense of the proceeding and shall be secured by the first lien in favor of the tax entity pursuant to § 67-5-2101 . The fee shall be charged to each pending parcel listed on the county and municipal delinquent tax lists filed in the tax proceeding and each parcel subsequently turned over for collection in a tax proceeding.
(3) The delinquent tax attorney shall make a diligent effort to give actual notice of the proceedings to all interested persons, as identified by the searches described in subdivision (c)(2).
(d) A tax sale notice, which shall be the same or substantially the same as the advertised notice, may be recorded in the register of deeds' office for the county in which the property is located upon the setting of the tax sale date. The recording cost shall be divided between the parcels of land listed in the tax sale notice and added as an additional court cost to each such parcel of land. This tax sale notice shall be recorded for informational purposes only and no release shall be required.
(e) (1) Any owner of a surface interest in property overlying a mineral interest may record a declaration of the owner's interest in such land with the register of deeds in the county where the mineral interest is located. Declaration forms shall be available at the register's office and shall include the name of the owner of mineral interest beneath the surface. Declaration forms received by the register's office shall be recorded by the register in the dormant mineral interest record. Declaration forms shall be indexed under the names of the mineral interest owners as grantor or grantors and under the names of the surface owners as grantee or grantees. Recording the declaration of surface ownership shall entitle surface owners to receive notice described in subdivision (e)(2). (2) In the event of the sale of severed mineral interest property pursuant to § 67-5-2501 , the clerk of the court shall send, by certified return receipt mail, a notice of proceedings regarding the sale of that mineral interest to any owner of the surface interest who has recorded a declaration of surface ownership as described in subdivision (e)(1). (3) (A) The owner of surface interest who has recorded a declaration of surface ownership according to subdivision (e)(1), and who has received notice of delinquent tax proceedings according to this section may, within one hundred twenty (120) days after the sale pursuant to § 67-5-2501 , purchase the mineral interest beneath the owner's tract for a percentage of the total amount of such sale, which percentage shall be derived from the percentage that the owner's surface interest bears to the total surface area of the property connected with the mineral interest sold at such tax sale. (B) Such surface owner shall tender to the clerk of court such amount, including a pro-rated amount of the penalty and interest paid, at the same percentage rate. The clerk shall, within thirty (30) days of receipt of such amount pay the same amount to the person who purchased the mineral interest at the tax sale. The surface owner shall, in addition, pay the clerk for the clerk's services in such transaction.
(1) Any owner of a surface interest in property overlying a mineral interest may record a declaration of the owner's interest in such land with the register of deeds in the county where the mineral interest is located. Declaration forms shall be available at the register's office and shall include the name of the owner of mineral interest beneath the surface. Declaration forms received by the register's office shall be recorded by the register in the dormant mineral interest record. Declaration forms shall be indexed under the names of the mineral interest owners as grantor or grantors and under the names of the surface owners as grantee or grantees. Recording the declaration of surface ownership shall entitle surface owners to receive notice described in subdivision (e)(2).
(2) In the event of the sale of severed mineral interest property pursuant to § 67-5-2501 , the clerk of the court shall send, by certified return receipt mail, a notice of proceedings regarding the sale of that mineral interest to any owner of the surface interest who has recorded a declaration of surface ownership as described in subdivision (e)(1).
(3) (A) The owner of surface interest who has recorded a declaration of surface ownership according to subdivision (e)(1), and who has received notice of delinquent tax proceedings according to this section may, within one hundred twenty (120) days after the sale pursuant to § 67-5-2501 , purchase the mineral interest beneath the owner's tract for a percentage of the total amount of such sale, which percentage shall be derived from the percentage that the owner's surface interest bears to the total surface area of the property connected with the mineral interest sold at such tax sale. (B) Such surface owner shall tender to the clerk of court such amount, including a pro-rated amount of the penalty and interest paid, at the same percentage rate. The clerk shall, within thirty (30) days of receipt of such amount pay the same amount to the person who purchased the mineral interest at the tax sale. The surface owner shall, in addition, pay the clerk for the clerk's services in such transaction.
(A) The owner of surface interest who has recorded a declaration of surface ownership according to subdivision (e)(1), and who has received notice of delinquent tax proceedings according to this section may, within one hundred twenty (120) days after the sale pursuant to § 67-5-2501 , purchase the mineral interest beneath the owner's tract for a percentage of the total amount of such sale, which percentage shall be derived from the percentage that the owner's surface interest bears to the total surface area of the property connected with the mineral interest sold at such tax sale.
(B) Such surface owner shall tender to the clerk of court such amount, including a pro-rated amount of the penalty and interest paid, at the same percentage rate. The clerk shall, within thirty (30) days of receipt of such amount pay the same amount to the person who purchased the mineral interest at the tax sale. The surface owner shall, in addition, pay the clerk for the clerk's services in such transaction.
(f) Any sale under this section may be adjourned and rescheduled one (1) time for cause without an additional newspaper publication or decree, upon compliance with the following provisions: (1) The sale must be held within one (1) year of the originally scheduled date; (2) The postponement or adjournment must be to a specified date and time, and must be posted or announced at the date, time, and location of the scheduled sale date; and (3) If the postponement or adjournment is for more than thirty (30) days, notice of the new date, time, and location must be mailed no less than ten (10) calendar days prior to the sale date via regular mail to the parties to the suit, with a copy of such notice filed with the clerk of court.
(1) The sale must be held within one (1) year of the originally scheduled date;
(2) The postponement or adjournment must be to a specified date and time, and must be posted or announced at the date, time, and location of the scheduled sale date; and
(3) If the postponement or adjournment is for more than thirty (30) days, notice of the new date, time, and location must be mailed no less than ten (10) calendar days prior to the sale date via regular mail to the parties to the suit, with a copy of such notice filed with the clerk of court.
Amended by 2024 Tenn. Acts, ch. 967,s 32, eff. 5/21/2024.
Amended by 2024 Tenn. Acts, ch. 967,s 22, eff. 5/21/2024.
Amended by 2024 Tenn. Acts, ch. 967,s 6, eff. 5/21/2024.
Amended by 2024 Tenn. Acts, ch. 967,s 4, eff. 5/21/2024.
Amended by 2019 Tenn. Acts, ch. 170, s 4, eff. 4/18/2019.
Amended by 2018 Tenn. Acts, ch. 778, Secs.s 4, s 5 eff. 4/19/2018.
Amended by 2017 Tenn. Acts, ch. 299, s 9, eff. 7/1/2017.
Amended by 2015 Tenn. Acts, ch. 213, s 3, eff. 7/1/2015.
Amended by 2014 Tenn. Acts, ch. 883, s 9, eff. 7/1/2014.
Amended by 2014 Tenn. Acts, ch. 883, s 10, eff. 7/1/2014.
Amended by 2014 Tenn. Acts, ch. 599, s 1, eff. 7/1/2014.
Amended by 2013 Tenn. Acts, ch. 353, s 17, eff. 5/13/2013.
Acts 1923, ch. 77, § 12; Shan. Supp., § 913b21; Code 1932, § 1596; Acts 1976, ch. 695, § 1; 1980, ch. 629, § 1; T.C.A. (orig. ed.), § 67-2018; Acts 1984, ch. 661, § 1; 1984, ch. 868, § 1; 1987, ch. 282, § 3; 1987, ch. 346, § 8; 1988, ch. 636, §§ 17-19; 1991, ch. 470, § 3; 1994, ch. 579, §§ 2-6; 1996, ch. 787, § 3; 1998, ch. 894, § 1.
Tenn. Code Ann. § 67-1-112 — TN Code / Title 67 / Chapter 1 / Section 67-1-112
Business tax - Taxes invoiced to customers to be included in tax base
Status: in_force

The business tax is a privilege tax imposed upon persons engaged in various businesses and activities in the state. If a dealer invoices the business tax as a separate item and passes it on to the dealer's customers, then the tax shall be added to the gross receipts and be used in determining the tax base for both business tax and sales and use tax purposes. Acts 1997, ch. 561, § 2.
The business tax is a privilege tax imposed upon persons engaged in various businesses and activities in the state. If a dealer invoices the business tax as a separate item and passes it on to the dealer's customers, then the tax shall be added to the gross receipts and be used in determining the tax base for both business tax and sales and use tax purposes.
Acts 1997, ch. 561, § 2.