67-5-1808 - Partial payment of property taxes. - Tennessee Statutes

67-5-1808. Partial payment of property taxes.

(a)  Notwithstanding any general law or any private act to the contrary, the county trustee may accept partial payments of property taxes, including, but not limited to, payment by electronic transfers, bank customer preauthorized payments, wire transfers or ACH credits, for the current tax year prior to the date the tax rate is established for the current tax year. Any partial payment of property taxes for the current tax year that is received before the later of July 1 or the date the property tax rate for the current year is established shall be held in a designated revenue account established to hold undistributed taxes and then transferred to the revenue account established for the current year's taxes after the later of July 1 or the date the property tax rate for the current year is adopted by the county legislative body.

(b)  Prior to any county trustee accepting partial payment of property taxes in accordance with this section, the county trustee shall file a plan with the comptroller of the treasury at least thirty (30) days prior to the acceptance of the payments. The comptroller of the treasury must acknowledge the receipt of the plan and provide written comments regarding the plan to the trustee prior to implementation. The plan should contain the following:

     (1)  A description of the accounting system technology or manual processes to be used to record partial payments of property taxes for the current tax year prior to the date the tax rate is established;

     (2)  A statement indicating whether such a process of collecting property taxes will be implemented within the existing operating resources of the office or an indication of prior approval by the county legislative body if accounting system upgrades or additional operating resources are needed; and

     (3)  Documentation of the internal controls that will ensure all property tax payments are being recorded and accounted for as required by law.

(c)  (1)  The delinquent date for property taxes and penalties and interest applicable to delinquent property taxes shall not be affected by application of a partial payment system established in such county.

     (2)  Penalties and interest shall apply only to the amount of delinquent property taxes remaining due as of the date property taxes become delinquent.

(d)  If a partial payment of property taxes is accepted, such partial payment does not release the tax lien on the property upon which the taxes were assessed.

(e)  The provisions of this section shall become effective upon the adoption of a resolution by two-thirds (2/3) vote of the county legislative body of any county to which it may apply. The presiding officer of the county legislative body shall certify a copy of the resolution to the secretary of state.

[Acts 1990, ch. 922, § 1; 2008, ch. 698, § 1; 2009, ch. 71, § 1.]