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 12 - CLASSIFICATION AND ASSESSMENT - INSURANCE COMPANIES (§§ 67-5-1201 — 67-5-1209) › Section 67-5-1203 - Determination of value

(a)
The value of such real property and tangible personal property shall be ascertained in the same manner as the real property and tangible personal property of other taxpayers.
(b)
The value of the balance of the corporate property and capital stock employed in Tennessee by an insurance company with stockholders shall be ascertained in the following manner:
(1)
The assessor shall first determine the aggregate amount of the issued and outstanding capital stock and surplus of such company as shown on its annual statement and shall deduct therefrom:
(A)
One-fourth (1/4) the sum of the value of the property held at the end of each calendar quarter by such company which is exempt from ad valorem property taxation under any law of this state or of the United States; and
(B)
The assessed value of all the real and tangible personal property of such company situated in and having a permanent situs in other states;
(2)
The assessor shall then apportion such remaining value to this state on the basis of the smaller of the following two (2) ratios:
(A)
The ratio which the direct premiums and annuity considerations received by such company from policies on persons residing in or property located in this state during the preceding calendar year bear to the total premiums, including premiums for reinsurance assumed, and annuity considerations received by such company during such year from all sources; or
(B)
The ratio which the aggregate direct premiums and annuity considerations received by all companies subject to this part from policies on persons residing in or property located in this state during the preceding calendar year bear to the aggregate total premiums, including premiums for reinsurance assumed, and annuity considerations received by all such companies during such year from all sources, which ratio shall be computed and published by the commissioner of commerce and insurance on or before April 15 of each year;
(3)
From such apportioned value, the assessor shall deduct:
(A)
The assessed value of all real property and tangible personal property of such company otherwise assessed or returned for taxation in Tennessee; and
(B)
The assessed value of all real property in Tennessee occupied by such company as its principal office under a lease which provides that all ad valorem taxes on such property shall be paid by such company, and which has been registered in the county where such principal office is located;
and the remainder shall constitute the value of the balance of the corporate property and the capital stock employed in Tennessee by such company.
(c)
(1)
In the case of an insurance company without stockholders, the value of the corporate property of such company for purposes of this section, excluding real property and tangible personal property, shall be equal to the total dividends paid to policyholders in the preceding calendar year.
(2)
For purposes of this subsection (c), "dividends" do not include returns or reductions of premiums or credits applied to premiums.
(d)
The assessor shall make the assessment on such value at the same percentage or ratio of assessment to value of property as was provided by law for the year 1972.
Amended by 2013 Tenn. Acts, ch. 328, Secs.s 1, s 2 eff. 5/13/2013.
Acts 1968, ch. 431, § 3; 1973, ch. 226, § 9; T.C.A., § 67-731.