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 18 - COLLECTION (§§ 67-5-1801 — 67-5-1809) › Section 67-5-1801 - Collector - Place of payment - Collection agent - Evidence of taxes - Deposits - Subrogation - Electronic funds transfers

(a)
The county trustee shall act as collector of all county property taxes and of all municipal property taxes when the municipality does not collect its own taxes. A municipality that certifies its delinquent tax list to the trustee or the delinquent tax attorney selected pursuant to §
67-5-2404(a)(1)
, is deemed to have authorized, without further action of the municipality, county officers to do all things authorized under parts 18-28 of this chapter with respect to the collection of delinquent municipal taxes, including the ability to convey any and all interests of the municipality in the property sold, until such time as the municipality's legislative body determines otherwise and causes a document evidencing the determination to be recorded in the office of the register of deeds. This subsection (a) is procedural and remedial in its application and is made applicable retroactively to the extent allowed by law.
(b)
These taxes shall be paid to the trustee at the trustee's office at the county seat or at such other place or places as the trustee may designate. A trustee is authorized to adopt a policy of not accepting current county real property taxes due when delinquent real property taxes are owing; provided, that this prohibition shall not apply when the obligor of one (1) or more of the prior year's taxes is in bankruptcy or there is a dispute as to the responsibility for such taxes.
(c)
(1)
The county trustee may designate a bank and/or the branches that are located within the county to act as a collection agent for the trustee and accept the deposit of county and municipal property taxes. The county trustee shall establish an account with the bank for such purpose, which shall be restricted to the deposit of county and municipal property taxes.
(2)
The taxpayer shall be required to furnish to the bank evidence of the property taxes that are due and payable and in no case shall such taxes be accepted by the bank when such taxes are delinquent. The bank shall use a deposit form for deposit of property taxes, which shall contain the following language: "In accepting deposits of taxpayers, the bank is acting as an agent for the trustee." The taxpayer will be provided a copy of the deposit form at the time of the deposit. The bank shall provide to the trustee such evidence of the taxes deposited into the account and a copy of the deposit forms at least every three (3) business days.
(3)
The county trustee shall determine whether the correct amount of property taxes was deposited into the account and whether interest is due on such property before issuance of the tax receipt to the taxpayer.
(4)
The taxpayer making a payment of property taxes in such manner is not relieved of interest upon failure of the bank to provide evidence of the deposit of such taxes prior to the due date.
(d)
When any person pays property taxes that are the legal obligation of a third party by mistake, inadvertence or otherwise, the person making the payment is subrogated to the rights of the government to which the property taxes are paid, against the person whose property taxes were paid. However, at any judicial sale of such property, the clerk shall not enter a bid as provided in §
67-5-2506
, or any other provision of law, on behalf of any government entity.
(e)
(1)
Any county trustee may accept partial payments of property taxes.
(2)
Prior to any county trustee accepting partial payment of property taxes, the county trustee shall file a plan with the comptroller of the treasury. The plan shall indicate that the county trustee's office has the accounting system technology to implement a program for partial payment of property taxes. The plan shall also indicate whether such a program will be implemented within the existing operating resources of the office or indicate prior approval of the county legislative body if additional operating resources are needed. This subdivision (e)(2) does not apply to any county which has implemented a partial payment program prior to April 19, 1995.
(3)
A county trustee may accept taxes paid by electronic funds transfer, including, but not limited to, bank customer preauthorized payments, wire transfers or ACH credits. If the entire amount of taxes due is not paid prior to the delinquency date for such taxes, the entire property shall be subject to the tax lien and enforcement by a tax sale or other legally authorized procedures. Unless partial payment is made by electronic transfer of funds, if the county trustee accepts partial payment within ten (10) days of the delinquency date, or at any time following such delinquency date, then prior to accepting such payment the county trustee must inform the taxpayer of the delinquency date and must advise such taxpayer that the property may be subjected to tax lien and enforcement by tax sale or other legally authorized procedures.
(4)
Direct bank transfers and partial payments are subject to the following guidelines:
(A)
Vouchers issued pursuant to the tax relief program shall be used as all or a portion of the final payment;
(B)
A receipt shall be issued to the taxpayer for any partial payment of taxes. The receipt shall state that:
(i)
The payment is a partial payment of property taxes;
(ii)
The balance owing on such taxes that must be paid prior to the delinquency date; and
(iii)
A failure to pay the entire amount of the taxes prior to the delinquency date subjects any unpaid taxes to the interest applicable to delinquent taxes and subjects the entire property on which there is a lien for taxes to a tax sale. The final partial payment shall show that a zero (0) balance is owing or shall state that the taxes are paid in full. Receipts shall also be sent to the taxpayer for payments made by direct bank transfer of funds; and
(C)
In any county having a metropolitan form of government and a population in excess of five hundred thousand (500,000), according to the 1990 federal census or any subsequent federal census, the trustee may set a minimum requirement of no more than the lesser of fifteen percent (15%) or twenty-five dollars ($25.00) for any partial payment.
Amended by 2019 Tenn. Acts, ch. 220,Secs.s3, s4, s5, s6 eff. 7/1/2019.
Amended by 2019 Tenn. Acts, ch. 170,s 1, eff. 4/18/2019.
Acts 1875, ch. 91, § 1; 1907, ch. 602, § 47; integrated in Shan., § 865a1; Code 1932, § 1546; modified; T.C.A. (orig. ed.), § 67-1104; Acts 1987, ch. 346, § 4; 1993, ch. 78, § 1; 1993, ch. 315, § 23; 1994, ch. 812, § 1; 1995, ch. 111, §§ 1, 2; 1995, ch. 259, § 1; 1996, ch. 787, §§ 1, 5, 8; 1997, ch. 187, §§ 1-3.