2023 Tennessee Code › Title 67 - TAXES AND LICENSES (§§ 67-1-101 — 67-10-107) › Chapter 8 - TRANSFER TAXES (§§ 67-8-101 — 67-8-705) › Part 4 - INHERITANCE TAX - ADMINISTRATION (§§ 67-8-401 — 67-8-425) › Section 67-8-412 - [Not applicable to decedents who die in 2016 or after, see section 67-8-425.] Basis of appraisal

(a)
All property, real and personal, shall be appraised at its full and true value at the date of the death of the decedent; provided, that stocks and bonds listed on recognized exchanges shall be appraised by ascertaining their quoted value on the date of death of the decedent or on the nearest business day of such exchange to such date. Notwithstanding any other law to the contrary, United States treasury bonds issued before March 4, 1971, and acquired by the decedent or the decedent's agent after May 30, 1985, that are listed in Treas. Reg. § 301.6312-2 (
26 CFR 301.6312-2
), and known as "Flower Bonds," shall be valued at par value to the extent that they are used to discharge federal estate tax liability.
(b)
(1)
Subsection (a) notwithstanding, the value of the gross estate, for the purposes of parts 3-5 of this chapter, may be determined, if the executor or administrator so elects, by valuing all the property, real and personal, included in the gross estate as follows:
(A)
In the case of property distributed, sold, exchanged, or otherwise disposed of, within six (6) months after the decedent's death, such property shall be valued as of the date of distribution, sale, exchange, or other disposition;
(B)
In the case of property not distributed, sold, exchanged, or otherwise disposed of, within six (6) months after the decedent's death, such property shall be valued as of the date occurring six (6) months after the decedent's death; and
(C)
Any interest or estate that is affected by mere lapse of time shall be included at its value as of the time of death, instead of the later date, with adjustment for any difference in its value as of the later date not due to mere lapse of time. The election provided for in this subsection (b) shall be exercised by the executor or administrator on the return, if filed within the time prescribed by law or before the expiration date of any extension of time granted pursuant to law for the filing of the return.
(2)
In the event of an election as provided for in this subsection (b), there shall be no deduction allowed on account of property with respect to which a deduction is claimed under §
67-8-315
in an amount greater than the value declared for the same property in determining the gross assets of the estate.
(c)
(1)
Notwithstanding subsection (a), in any case of an estate where an executor could elect, without regard to § 2032A(b)(1)(C)(ii) and § 2032A(c)(6)(B) of the Internal Revenue Code (
26 U.S.C. § 2032A(b)(1)(C)(ii) and (c)(6)(B)
), relative to material participation in the operation of the farm or other business by the decedent or members of the decedent's family, the special valuation for farm or other property under § 2032A of the Internal Revenue Code, such special valuation shall also be available to the executor for Tennessee inheritance tax valuation purposes. For such purposes, the executor and any other person shall be subject to all conditions and limitations set out in § 2032A, with the exception of § 2032A(b)(1)(C)(ii) and § 2032A(c)(6)(B), which shall not be applicable. In addition, a lien shall arise in favor of the state comparable to that arising in favor of the United States under § 6324B of the Internal Revenue Code (
26 U.S.C. § 6324B
), and such lien shall be subject to the filing and priority provisions of §
67-1-1403
.
(2)
The commissioner shall prescribe procedures to provide that, in any case in which the personal representative makes a timely election under this subsection (c) and substantially complies with the federal regulations pertaining to the election but the notice of election as filed does not contain all required information, or the signatures of one (1) or more necessary persons are not included on the agreement provided for in this subsection (c), or the agreement does not contain all required information, the personal representative is to have reasonable time, not exceeding ninety (90) days, after notification of such failure or other deficiency, in which to provide such information or signatures. The provisions hereof shall apply to the estates of all decedents dying after December 31, 1976.
Acts 1929 (Ex. Sess.), ch. 29, § 3(6); Code 1932, § 1278; Acts 1971, ch. 118, § 5; impl. am. Acts 1978, ch. 686, §§ 1, 5; Acts 1978, ch. 731, § 11; 1983, ch. 73, § 8; T.C.A. (orig. ed.), § 30-1621; Acts 1985, ch. 364, § 8; 1985, ch. 453, § 3.