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 25 - TAX LIEN - SALE OF PROPERTY (§§ 67-5-2501 — 67-5-2516) › Section 67-5-2501 - [Effective Until 9/1/2024] Sale of land generally

(a)
(1)
The court shall order a sale of the land for cash, certified funds, cashier's check, money order, or automated clearing house transfer, as applicable. All sales are subject to the equity of redemption. Such sale may be conducted electronically in lieu of public outcry.
(2)
At all sales, the clerk of the court, acting for a tax entity or entities prosecuting the suit, shall bid the debt ascertained to be due for taxes, interest, penalties, and the costs and fees incident to the collection thereof, where no other bidder offers the same or larger bid; provided, that, when the legislative body of a tax entity determines that the environmental risks or financial liabilities associated with the property are such that it is not in the best interests of the tax entity for a minimum bid to be offered at the tax sale, the clerk shall not offer a bid on the property at the tax sale.
(3)
Up to ten percent (10%) of the sale proceeds shall be applied first to payment of any unpaid balance of compensation due the prosecuting attorney. Second, the proceeds of the sale shall be applied to the costs of the suits. Third, the remainder shall be applied to the state first, county second, and municipality third, the amount due each to be ascertained by a decree of the court.
(4)
This subsection (a) does not apply to counties with a metropolitan form of government or to counties having the following populations according to the 1970 federal census or any subsequent federal census:
not less than
nor more than
3,765
5,200
6,600
6,700
8,100
8,200
12,300
12,350
12,400
12,550
14,700
14,800
36,900
37,100
56,200
56,300
(b)
(1)
The court shall order a sale of the land for cash, certified funds, cashier's check, money order, or automated clearing house transfer, as applicable. All sales are subject to the equity of redemption. Such sale may be conducted electronically in lieu of public outcry.
(2)
At all sales, the clerk of the court, acting for a tax entity or entities prosecuting the suit, shall bid the debt ascertained to be due for taxes, interest, penalties, and the costs and fees incident to the collection thereof, where no other bidder offers the same or larger bid; provided, that, when the legislative body of a tax entity determines that the environmental risks are such that it is not in the best interests of the tax entity for a minimum bid to be offered at the tax sale, the clerk shall not offer a bid on the property at the tax sale.
(3)
The proceeds from such sale shall be applied first to the payment of the ten percent (10%) penalty allowed as compensation for prosecuting the suits, second to the costs, and third the remainder shall be applied to the state first, county second, and the municipality third, the amount due each to be ascertained by a decree of the court.
(4)
This subsection (b) applies only to counties with a metropolitan form of government and to counties having the following populations according to the 1970 federal census or any subsequent federal census:
not less than
nor more than
3,765
5,200
6,600
6,700
8,100
8,200
12,300
12,350
12,400
12,550
14,700
14,800
36,900
37,100
56,200
56,300
(c)
(1)
Within five (5) business days after the conclusion of the sale, and prior to confirmation of the sale by the court, the clerk of the court shall immediately file in the case a report of sale or other notice reflecting the results of the tax sale.
(2)
The clerk of the court shall, concurrently with the filing, file the report or notice with the office of the register of deeds of the county in which the property is located. The report or notice shall set forth all results from the sale, or a separate report or notice may be created for each property sold.
(3)
The report or notice shall include, at a minimum, the identification of the property and defendants contained in the notice of sale as required by §
67-5-2502
, the name of the successful bidder, and the total successful price bid for each parcel together with the instrument number of the last conveyance of record.
(4)
The report or notice shall be for notice purposes only and shall not be evidence of transfer of title.
(5)
Failure to timely record the report or notice shall not provide grounds to set the sale aside.
(6)
The document shall be exempt from recording fees pursuant to §
8-21-1001
, and shall be indexed by the register under the name of the last owner of record.
Amended by 2017 Tenn. Acts, ch. 299, s 8, eff. 7/1/2017.
Amended by 2017 Tenn. Acts, ch. 299, s 7, eff. 7/1/2017.
Amended by 2016 Tenn. Acts, ch. 1085, s 1, eff. 5/20/2016.
Amended by 2015 Tenn. Acts, ch. 524, s 1, eff. 1/1/2016.
Amended by 2013 Tenn. Acts, ch. 353, s 19, eff. 5/13/2013.
Acts 1923, ch. 77, § 8; Shan. Supp., § 913b17; Code 1932, § 1951; Acts 1935, ch. 114, § 1; C. Supp. 1950, § 1591; Acts 1972, ch. 503, § 2; 1973, ch. 296, § 3; 1978, ch. 869, §§ 4, 6-8; 1981, ch. 125, § 1; 1983, ch. 307, § 1; T.C.A. (orig. ed.), § 67-2012; Acts 1996, ch. 787, § 7.
This section is set out more than once due to postponed, multiple, or conflicting amendments.