Tennessee Property Tax Laws

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know your tax rights.

You don’t like paying taxes. No one does, but when you pay Tennessee property tax laws you support public services that you rely on daily.

Property tax is an inescapable component of owning a house. They affect how much you have to pay for your mortgage, and also how much people will pay when you decide to sell your house. Your property tax is different depending on where you live and typically increases as your house appreciates in value.

The state of Tennessee is a great place to own property, but before you sell, it’s important to understand the property tax laws. In this blog post, we will discuss the basics of Tennessee’s property tax laws, as well as some of the available relief programs. We will also look at who is responsible for setting property taxes in Tennessee. If you are considering selling your home or property in our state, be sure to read this blog post!

Property Tax Laws In Tennessee

The property tax laws in Tennessee are very straightforward. All real and personal property in the state is subject to taxation, with the exception of certain types of property that are specifically exempt. The taxable value of the residential property is determined by the assessor’s office in each county, and property taxes are calculated based on that property value.

Generally, the property tax is the responsibility of the owner of the property. However, in some cases, the tenant may be responsible for paying the property taxes. This depends on the terms of the lease agreement, and it is important to consult with an attorney if you are unsure about who is responsible for paying the state taxes.

If you do not pay your Tennessee property taxes, the county will place a lien on the property. This means that state law permits the property to be sold at a public auction in order to collect unpaid taxes. If the property is sold at a tax sale, the new owner will be responsible for paying the outstanding taxes.

Aerial view of downtown Nashville, Tennessee

Nashville TN Tax Laws

The Metropolitan Government relies heavily on property tax collection, representing over 50% of its operational budget. To calculate residential and commercial taxes, assessed values are used – 25% and 40% of the appraised value for residential properties; and 40% of the total evaluated value for commercial properties.

The mayor of Nashville increased the city’s property tax levy by 34%. The increase will have repercussions throughout every corner of town, yet it could translate into more capital generated for Nashville.

The city of Nashville and the encompassing Davidson County are two separate divisions, each having its own rate for property taxes. As part of the Urban Services District, areas like Knoxville, East Nashville, Downtown, and more experience a raised tax rate of $4.221 per every $100 assessed in value – compared to the previously imposed rate of only $3.155.

Tennessee’s laws are strict regarding raising overall tax receipts as property values change with periodic reassessment. After appraising the properties, each municipality must select a “certified” rate for taxation.

The certified rate is calculated to produce the same amount of taxable income as in the previous year to remain revenue-neutral. However, if more funds are desired for budgetary purposes, it’s up to the Council whether they impose a higher percentage than what has been determined as necessary by certification.

Consequently, the Metro Council can reduce its tax rate in a year when there is considerable growth in property value due to reassessments on older and newly developed properties.

In specific neighborhoods of Nashville, where property values are increasing rapidly, your tax bills could decrease or increase depending upon the set tax rate if home prices in this area have stayed the same as in other parts of the county.

Tennessee Property Tax Relief

There are several Tennessee property tax relief programs available that offer relief from property taxes on real estate. First, the Homestead Exemption program allows homeowners to exempt a certain amount of their home’s value from taxation. The Elderly and Disabled Homeowners Tax Relief program provides tax relief to seniors and disabled citizens. Finally, the Property Tax Deferral program allows homeowners to delay payment of property taxes (tax freeze) until they sell or move out of the home.

These are just a few of the many programs that offer property tax relief in Tennessee. To learn more about these programs, and Tennessee law, or to find out if you are eligible for any of them, don’t hesitate to get in touch with the Tennessee property tax assessor’s office.

Tennessee Property Tax Programs

Tennessee property tax relief programs include: 

1. Property Tax Freeze

The people of Tennessee voted for an amendment to Article II, Section 28 of their state Constitution. This alteration allowed counties and municipalities to initiate a local property tax freeze option tailored explicitly for citizens aged 65 or older.

Homeowners eligible for the program will have their primary residence’s property taxes fixed at a predetermined amount, equal to the taxes owed when they initially qualified. So long as the homeowner complies with eligibility requirements, they can expect their yearly tax bill to be consistent regardless of rate increases or county-wide reassessments.

2. Property Tax Relief

Tennessee offers property tax relief through exemptions and programs to eligible low-income, elderly homeowners, disabled veterans, disabled persons, and their surviving spouses. To take advantage of this benefit, submit an application to your local county trustee’s office or the city collecting official’s office.

3. Personal Property

Under Tennessee Code Annotated (TCA) 67-5-903, Tangible Personal Property must be filed by all for-profit corporations, partnerships, and other trade organizations that do not issue shares. 

Furthermore, this law dictates that professional or business people file according to 10 categories of tangible personal property and nonstandard and leasing components with respective depreciation rates.

According to SBOE Rule 0600-05-.01, the overall acquisition cost of a newly acquired property must be reported in full for that year. This total cost includes the purchase price, installation costs, freight fees, sales tax, and set-up expenses.

Who Is Responsible for Setting Taxes?

The person who is responsible for setting the taxes is the person who has the authority to do so. In most cases, this would be the mayor or city manager. However, the city council may also have a role in setting the taxes. The city council is the city’s legislative body and has the power to pass ordinances and fixed tax rates. The mayor or city manager may also have the authority to set tax rates, but this is usually done in consultation with the city council.

The property taxes in Tennessee are set by the county trustee. The trustee is an elected official who is responsible for collecting taxes and distributing the funds to the various county departments. The trustee is also responsible for setting the tax rates. The tax rates are set by the state legislature and are based on the property’s assessed value. The tax rates can be found in the Tennessee Code Annotated, which is available online.

The assessed value of the property determines the amount of taxes that are collected by the county trustee. The Tennessee property tax assessor is responsible for determining the value of the property. The assessor uses a variety of factors to determine the appraised value of the tangible personal property, including the sale price of similar properties, the size of the property, and the location of the property. The assessor also takes into account the improvements that have been made to the property. The assessed value of the property is then used to calculate the tax rate.

The tax rate is applied to the assessed value of the property to determine the amount of taxes that are owed for that calendar year. The tax rates vary from one county to another, and they can also vary from one tax year to another. The tax rates are set by the state legislature and are based on the assessed value of the property. The Tennessee Comptroller of the Treasury offers a comprehensive list of all applicable tax rates online.

The taxes that are collected by the county trustee are used to fund various county departments, including the schools, law enforcement, and the fire department. The county trustee also distributes funds to the cities in the county. The money that is distributed to the cities is used to fund various city services, including police and fire protection, public works, and parks and recreation.

Two young homeowners research their tax rights according to tennessee property tax law.

What Are Your Tax Rights

Tennessee property taxes are assessed and levied by the county in which the property is located. Annually, taxes are due on the first Monday of October and they are determined by a fair market value assessment of the property. However, there are a number of exemptions and deductions that may be available, so it is important to review the tax laws carefully.

The Tennessee Department of Revenue (DOR) is responsible for administering the state’s property tax laws. The DOR has several resources available on its website, including an online property tax calculator and a guide to understanding your assessment notice. They also offer a free helpline – (615) 253-0600 – which can provide assistance with property tax questions, tax payments, and delinquent taxes for real property.

If you have a question or dispute about your assessment, you can file a protest with the county assessor’s office for a reappraisal. You will need to provide documentation supporting your claim, and there is a filing fee of $15. If the county board of equalization rules in your favor, the fees will be refunded.

You also have the right to appeal the decision of the county board of equalization to the Tennessee Board of Tax Equalization. This appeal must be filed within 30 days of the date of the board’s decision, and there is a $50 filing fee.

If you are unable to pay your property taxes/tax bill, you may be eligible for a payment plan or a property tax exemption. Contact your county’s trustee office for more information about these options and eligibility.

As you can see, there are a number of things to consider when it comes to property taxes in Tennessee. It is important to understand your rights and responsibilities in order to ensure that you are paying the correct amount of taxes. If you have any questions, be sure to contact the DOR or your county trustee’s office for assistance.

Final Takeaways

While property taxes in Tennessee are some of the highest in the nation, there are a few ways to lower your bill. If you have high taxes in your county, it might be worth it to relocate to a low-tax county. If that’s not an option for you, appealing your property tax assessment is worth considering as well. 

For a lot of homeowners selling their property is the best solution. However, selling a property is not an easy task, but it can be much easier with the help of one of the top companies that buy houses in Nashville. So, if you are looking to sell your home fast in Tennessee, well, you’re in luck because we buy houses in Tennessee! We’re cash home buyers in Knoxville and purchase houses all over Tennessee, Georgia, and Alabama. So whether you’re dealing with property taxes or capital gains tax on real estate, we’d be happy to take a look at your property and make you a no-obligation offer for your home. We also don’t charge realtor commissions and will buy your home in as-is condition. Contact us today if you’re interested in selling your home fast in Tennessee!

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