67-5-2003 - Collection by distraint and sale of personalty Actions at law, or garnishment. - Tennessee Statutes

67-5-2003. Collection by distraint and sale of personalty Actions at law, or garnishment.

(a)  All delinquent personal property taxes may be immediately collected by the county trustee, with the assistance of the delinquent tax attorney selected pursuant to § 67-5-2404, if such delinquent tax attorney's assistance is requested by the trustee. The tax books in the hands of the trustee and the delinquent lists furnished to deputy trustees, or the sheriff or constables in any county where the taxpayer or any property liable for the taxes may be found, or the delinquent tax attorney, shall have the force and effect of a judgment and execution from a court of record, and shall be ample authority for the officers or delinquent tax attorney having such taxes for collection to distrain and sell a sufficient amount of the personal property to satisfy the delinquent taxes, interest, penalties, costs and attorneys' fees. However, leased personal property assessed to a lessee shall not be distrained and sold pursuant to this section.

(b)  These delinquent personal property taxes may be immediately collected by distraint (distress warrant) and sale of any personal property liable therefor, by suit at law against the taxpayer, and/or by garnishment.

(c)  Prior to distraint (seizure) of any personal property, the trustee, deputy trustee or delinquent tax attorney shall give not less than ten (10) days' written notice of the intended distraint (seizure) by either:

     (1)  Delivering such notice in person;

     (2)  Leaving such notice at the dwelling place or usual place of business of the taxpayer; or

     (3)  By mailing such notice to the taxpayer's last known address.

(d)  Ten (10) days' notice of the time and place of any sale of personalty shall be given by advertisement posted in three (3) public places in the county, one (1) of which shall be at the courthouse door. In addition, at least ten (10) days' written notice of the sale shall be given to the taxpayer by any of the methods outlined in subsection (c).

(e)  The officers shall in all cases have the personal property present when sold and shall be allowed to retain in addition to the taxes, interest, penalties, costs, and attorney's fees, all commissions, costs and necessary expenses of removing and keeping the property distrained (expenses of seizure, preservation and storage of the property).

(f)  Any delinquent tax attorney assisting the trustee shall be allowed attorney's fees, computed as are attorney's fees for collection of real property taxes in § 67-5-2410.

(g)  The trustee may turn over the delinquent list thirty (30) days after such taxes become delinquent to the delinquent tax attorney, selected pursuant to § 67-5-2404, to file suit to collect delinquent personal property taxes as part of the suit to collect the prior year's real property taxes, or as a separate lawsuit. Such can be done without having first issued a distress warrant. In the event the trustee turns over the delinquent list prior to the mailing of the notice required by § 67-5-2402, the trustee shall be required to forward written notice by first class mail to the last known property owner at least ten (10) days before the delinquent list is turned over to the delinquent tax attorney. A judgment obtained against a delinquent taxpayer may be enforced as a lien on the property, or as any other judgment, including garnishment or sale of property by the sheriff. If this procedure is used, the trustee is also authorized, as with real property tax records, to turn over records to the court clerk.

(h)  If any individual, partnership, joint venture, corporation or other legal entity has personal property, tangible or intangible, assessable by the county assessor or other authority, that is sold pursuant to the provisions of title 47, chapter 9, the party possessing the security interest shall withhold from the proceeds of the sale an amount sufficient to satisfy the personal property taxes assessed under § 67-5-2101. A party selling the property who fails to withhold such amount shall be held to be personally liable to the trustee or other local taxing authority to which these personal property taxes are due.

[Acts 1907, ch. 602, § 49; Shan., §§ 877a1, 877a2; Acts 1923, ch. 77, § 3; Shan. Supp., § 913b2; mod. Code 1932, §§ 1574-1576; C. Supp. 1950, § 1574; T.C.A. (orig. ed.), §§ 67-1305 67-1307; Acts 1987, ch. 346, §§ 6, 17; 1990, ch. 1075, § 11.]