2023 Tennessee Code › Title 67 - TAXES AND LICENSES (§§ 67-1-101 — 67-10-107) › Chapter 5 - PROPERTY TAXES (§§ 67-5-101 — 67-5-2803) › Part 13 - CLASSIFICATION AND ASSESSMENT - UTILITIES AND CARRIERS (§§ 67-5-1301 — 67-5-1333) › Section 67-5-1302 - Basis of value and level of assessment

(a)
(1)
The comptroller of the treasury shall, except as otherwise provided in this part, assess all operating property, real and personal, tangible and intangible, at fifty-five percent (55%) of its value. Such operating property which is used predominantly to provide cellular telephone service, radio common carrier service, or long distance telephone service, or which is used by a modern market telecommunications provider, shall be assessed at the rate applicable to commercial and industrial property of the same type. Property of water transportation carrier companies, or the portion thereof, which is used for water carriage which was exempt from regulation by the interstate commerce commission under federal law in effect on November 1, 1995, shall be assessed at the rate applicable to commercial and industrial property of the same type.
(2)
The value shall be determined by the unit rule of appraisal where applicable.
(3)
"Unit" means all operating property, tangible and intangible, owned and used and/or leased by the company as determined by the comptroller of the treasury.
(4)
"Unit rule of appraisal" means the appraisal of the property as a whole without geographical or functional division of the whole.
(b)
(1)
The assessments of public utility property or property of modern market telecommunications providers, as set by the comptroller of the treasury in accordance with subsection (a), shall be adjusted, where necessary, on the basis of appropriate ratios, as are determined by the board of equalization for purposes of equalizing the values of such property to the prevailing level of value of property in each jurisdiction; provided, that no equalization factor for purposes of this section may exceed a factor of one (1.000).
(2)
In filing the assessments made by the comptroller of the treasury with the board of equalization as required in §
67-5-1327
, the comptroller of the treasury shall set out the assessments as determined by the comptroller of the treasury in accordance with the constitutional level of assessments.
(3)
The comptroller of the treasury shall also furnish the board of equalization with the equalized assessments as soon as determined.
(c)
(1)
The comptroller of the treasury shall assess all nonoperating property at its proper level according to the use and class of property into which it may fall.
(2)
Nonoperating property shall be appraised annually and valued as other locally assessed property.
(3)
"Nonoperating property" means that property not used in the operations of the company as determined by the comptroller of the treasury.
(d)
(1)
The comptroller of the treasury shall recognize specific valuation for construction-in-process (CIP) tangible personal property in a manner consistent with that provided for locally assessed property under §
67-5-903(g)(1)
.
(2)
The state board of equalization is directed to prepare and adopt rules and regulations for the administration and taxation of CIP pursuant to this section and §
67-5-903
, and communicate such rules and regulations to taxpayers to ensure accurate and timely compliance by taxpayers. No back assessments of CIP, as the term is used in §
67-5-903(g)
, shall occur prior to January 1, 1994. If back assessments have occurred involving CIP, those assessments shall be voided and all taxes paid shall be refunded to those taxpayers who have an action or claim pending before an assessing authority or court on the CIP issue.
Amended by 2017 Tenn. Acts, ch. 490,Secs.s5, s6 eff. 6/6/2017.
Amended by 2013 Tenn. Acts, ch. 209,s 11, eff. 4/23/2013.
Acts 1973, ch. 226, § 11; 1980, ch. 827, § 4; T.C.A., § 67-902; Acts 1989, ch. 312, § 4; 1993, ch. 323, §§ 2, 3; 1995, ch. 305, § 125; 1999, ch. 198, § 2.