67-5-1512 - Certification of board action Penalties and interest. - Tennessee Statutes

67-5-1512. Certification of board action Penalties and interest.

(a)  (1)  Upon the hearing of any appeal and complaint, the state board of equalization or the assessment appeals commission under § 67-5-1502 having made its determination of the assessment of the property subject to the appeal and complaint, the executive secretary to the state board of equalization shall sign and keep on file in the executive secretary's office the original copy of the official certificate relative to the action of the state board or the assessment appeals commission, as the case may be.

     (2)  The official certificate shall show the description of the property and the assessment as determined by the state board of equalization or the assessment appeals commission, as the case may be.

     (3)  Copies of the official certificate shall be sent to the owner of the property or the owner's agent, the chief executive officer of the taxing jurisdiction, trustee, and assessor of property for the jurisdiction in which the property is located.

(b)  (1)  (A)  Except as provided in subdivision (b)(1)(C), notwithstanding the provisions of chapter 1, part 8 of this title to the contrary, no penalties or interest, except as provided in subdivision (b)(2), shall be imposed or collected upon delinquent taxes if the taxpayer:

                (i)  Is pursuing an appeal pursuant to the provisions of this part or part 14 of this chapter; and

                (ii)  Either:

                     (a)  Pays prior to March 1, or the delinquency date pursuant to municipal charter, an amount equal to the taxes imposed based upon the assessment certified by the local board of equalization. Such payment shall not be construed to prejudice the taxpayer's appeal; provided, that in any county included in the provisions of Acts 1989, ch. 550, §§ 8-21, or in any county which by private act adopts similar provisions to those contained in such provisions of Acts 1989, ch. 550, the delinquency date shall be February 1; or

                     (b)  Elects to make a payment in an amount equal to the taxes such taxpayer would be required to pay if the taxpayer prevailed on appeal.

          (B)  Except as provided in subdivision (b)(1)(C), it is a condition for appeal that the undisputed portion of the tax levied be paid before the delinquent date of the tax and that no delinquent taxes have accrued on the property. Failure to pay the undisputed portion of the tax or any other property tax delinquency, or both, that have accrued on that property by the time of hearing shall result in the appeal being dismissed without any further right to administrative appeal.

          (C)  No hearing shall be held on any appeal until the undisputed portion of the tax has been paid. The provisions of this subdivision (b)(1)(C) only apply in counties having a population greater than seven hundred seventy thousand (770,000), according to the 1980 federal census or any subsequent federal census.

     (2)  (A)  Except as provided in subdivision (b)(2)(B), if the taxpayer has made a payment in accordance with subdivision (b)(1) and prevails on appeal, the county or municipality shall pay interest at the rate of two (2) percentage points below the composite prime rate as published by the federal reserve board as of the date such taxes would have normally become delinquent. Such interest shall be calculated from March 1, or the date the taxes would have become delinquent under the municipal charter; provided, that in any county included in the provisions of Acts 1989, ch. 550, §§ 8-21, or in any county which by private act adopts similar provisions to those contained in such provisions of Acts 1989, ch. 550, the delinquency date shall be February 1. Such interest shall be calculated upon the amount paid in excess of the taxes due as determined by final action of the state board of equalization, the assessment appeals commission, or county board of equalization. If the taxpayer loses or withdraws the appeal or it is determined that taxes in excess of the amount paid, if any, pursuant to subdivision (b)(1) are owed, then such taxpayer shall pay, in addition to such amount, interest at the same rate on the balance of the amount due as provided in this subdivision.

          (B)  If the taxpayer prevails in any appeal to the local or state board of equalization, the county or municipality shall, within sixty (60) days from the date of the final action by the state board of equalization or assessment appeals commission, refund any overpayment in taxes, together with interest thereon at the rate of two (2) percentage points below the composite prime rate as published by the federal reserve board computed from the date the overpayment was made until the date refunded. The taxpayer or taxpayer's agent, who is successful in appeals and has multiple properties, shall, on request, receive refunds for those properties in one (1) check. In lieu of the original paid tax receipts, where there are multiple properties, the taxpayer or taxpayer's agent shall post a bond in the amount to be determined by the county trustee. A taxpayer having a single property may provide the trustee with an affidavit satisfactory to the trustee or cancelled check and receive the refund to which the taxpayer is entitled. The provisions of this subdivision (b)(2)(B) only apply in counties having a population greater than seven hundred seventy thousand (770,000), according to the 1980 federal census or any subsequent federal census.

     (3)  No proceeding shall be undertaken to collect any taxes based on any assessment on property which has undergone a reappraisal and the state has publicly announced or agreed that it would review and/or reappraise the value of the properties. The addition of interest is subject to the provisions of § 67-5-1608.

     (4)  Delinquency penalty and interest postponed under this section shall begin to accrue thirty (30) days after issuance of the final assessment certificate of the state board of equalization and until the tax is paid.

(c)  Notwithstanding other provisions of the law, the interest rate on a deferred refund shall increase two (2) points from the date of the deferral sixty (60) days after the board of equalization decision is rendered until the refund is finally paid.

[Acts 1973, ch. 226, § 10; 1974, ch. 771, § 11; 1975, ch. 171, § 10; Acts 1980, ch. 533, §§ 1-5; T.C.A., § 67-841; Acts 1986, ch. 627, § 1; 1988, ch. 795, § 19; 1989, ch. 291, § 3; 1989, ch. 550, §§ 3, 22; 1990, ch. 1045, §§ 1, 2, 4; 1993, ch. 315, § 11; 1996, ch. 787, §§ 2, 9, 10; 1997, ch. 197, § 1; 2003, ch. 385, § 1; 2007, ch. 332, § 1; 2008, ch. 680, § 2.]