Property Assessors - As introduced, revises the schedule of required property reappraisals by county property assessors from a three- to six-year cycle to a one- to four-year cycle; makes various other updates to property reappraisal requirements and procedures. - Amends TCA Section 67-5-1005 and Title 67, Chapter 5, Part 16.
  • Bill History
  • Amendments
  • Video
  • Summary
  • Fiscal Note
  • Votes
  • Actions For SB1946Date
    Reset on Final calendar of Senate Finance, Ways, and Means Committee03/12/2024
    Placed on Senate Finance, Ways, and Means Committee calendar for 3/12/202403/05/2024
    Recommended for passage, refer to Senate Finance, Ways, and Means Committee02/27/2024
    Placed on Senate State and Local Government Committee calendar for 2/27/202402/20/2024
    Sponsor(s) Added.02/20/2024
    Action deferred in Senate State and Local Government Committee to 2/27/202402/20/2024
    Placed on Senate State and Local Government Committee calendar for 2/20/202402/13/2024
    Passed on Second Consideration, refer to Senate State and Local Government Committee01/29/2024
    Introduced, Passed on First Consideration01/25/2024
    Filed for introduction01/24/2024
    Actions For HB2057Date
    Held on desk.03/14/2024
    Reset on next avail. cal.03/07/2024
    Sponsor(s) withdrawn.03/07/2024
    H. Placed on Regular Calendar for 3/7/202402/29/2024
    Placed on cal. Calendar & Rules Committee for 2/29/202402/28/2024
    Rec. for pass; ref to Calendar & Rules Committee02/27/2024
    Placed on cal. Finance, Ways, and Means Committee for 2/27/202402/21/2024
    Rec. for pass by s/c ref. to Finance, Ways, and Means Committee02/21/2024
    Placed on s/c cal Finance, Ways, and Means Subcommittee for 2/21/202402/14/2024
    Assigned to s/c Finance, Ways, and Means Subcommittee02/14/2024
    Rec. for pass; ref to Finance, Ways, and Means Committee02/13/2024
    Placed on cal. Local Government Committee for 2/13/202402/07/2024
    Rec. for pass by s/c ref. to Local Government Committee02/07/2024
    Sponsor(s) Added.02/05/2024
    Placed on s/c cal Property & Planning Subcommittee for 2/7/202401/31/2024
    Assigned to s/c Property & Planning Subcommittee01/30/2024
    P2C, ref. to Local Government Committee01/29/2024
    Intro., P1C.01/25/2024
    Filed for introduction01/24/2024
  • No amendments for SB1946.
    No amendments for HB2057.

  • Videos containing keyword: SB1946

  • Fiscal Summary

    Other Fiscal Impact – The extent and timing of any increase in local property tax revenue cannot be reasonably estimated but will be significant. In tax year 2023, it is estimated at least $100 million in property tax collections would have been realized under a more frequent reappraisal system.


    Bill Summary

    REAPPRAISAL

    Present law regarding property taxes requires reappraisal to be accomplished in each county by a continuous six-year cycle comprised of an on-site review or photo of each parcel over a five-year period, or, upon approval of the state board of equalization ("board"), by a continuous four-year cycle comprised of an on-site review or photo of each parcel over a three-year period, followed by revaluation of all such property in the year following completion of the review period. Alternatively, if approved by the assessor and adopted by a majority vote of the county legislative body, the reappraisal program may be completed by a continuous five-year cycle comprised of an on-site review or photo of each parcel over a four-year period followed by revaluation of all such property in the year following completion of the review period. The board may consider a plan submitted by an assessor which would have the effect of maintaining real property values at full value as defined by law on a schedule at least as frequent as outlined in the present law.

    In the third year of a six-year reappraisal cycle, present law requires there to be an updating of all real property values if the overall level of appraisal for the jurisdiction is less than 90 percent of fair market value. If the overall level of appraisal for the jurisdiction is greater than or equal to 90 percent of fair market value, any subclass of property not having a level of appraisal within 10 percent of the overall level of appraisal for the jurisdiction must be updated to the overall level of appraisal. Further, any group of property within a subclass not having a level of appraisal within 10 percent of the level of appraisal for that subclass must be updated to the level of appraisal for that subclass. If land market values of farm property in the county are not updated, then land use values for land classified as agricultural, forest and open space will not be updated. When values are updated, the factors or appraisal table changes used to effect the update must be as determined by the state board.

    Present law authorizes the board to approve a reappraisal plan specifying a schedule for on-site review or photo that is different than the standard schedule provided in the above provision, but is no longer than five years, whether the frequency of revaluation is four, five, or six years.

    COSTS

    Present law requires the state to pay a per-parcel grant to local governments to assist in the cost of reappraisal. The grant must be determined by the division of property assessments and approved by the board. Such funds must be expended solely for the purpose for which the grant was made.

    Present law requires, in the absence of any agreement between the county and the cities imposing a property tax, local costs of reappraisal of properties within a city must be paid one-half by the county and one-half by the city. Any city paying one-half of local costs of reappraisal must pay those costs directly to the county government with jurisdiction over the property being reappraised, and must pay those costs during the fiscal year in which the reappraisal is finalized.

    Present law also requires the assessor of property to submit such plans and reports for reappraisal as the board requires. The board, with the assistance of the division of property assessments, has the power to approve, modify or disapprove any proposed plan submitted by the assessor of property. All work is subject to the supervision and approval of the director of property assessments. The division must supervise and direct all reappraisals and revaluation programs, to the cost of which the state of Tennessee contributes. Where the on-site review is undertaken by the county assessor of property and the county assessor's staff or a professional firm is employed to carry out this work, the division must monitor the on-site review conducted by the county or the professional firm.

    PLAN OF EXECUTION

    Present law requires the assessor of property of each county to prepare a plan for carrying out the requirements of the above provisions and the repayment of reappraisal loans, the equalization of assessments based on reappraisals, and appraisal ratio studies in the assessor's taxing jurisdiction, such plan to be submitted to the county mayor and the county legislative body for review in such form, manner and time as determined by the board.

    NOTICE

    Present law provides that whenever the classification or assessed value of property is changed as a result of reappraisal, the property owner is entitled to notice of such change as otherwise provided by law at least 10 calendar days before the local board of equalization commences its annual session and, in addition, must be given the opportunity to appear at an informal hearing on a day or days scheduled for such hearings.

    FAILURE TO COMPLY

    Present law provides that upon a finding by the division that the assessor of property or the county is unable or unwilling to comply with the above provisions, the director of the division must report such finding to the board. The board must notify the assessor of property and the county mayor of the nature of the noncompliance and must indicate the action required to correct such noncompliance. Failure on the part of the assessor or the county to comply within 45 days of such notification must result in the withholding of any or all of the state grant for reappraisal scheduled to be received by the county until such deficiency is corrected. If satisfactory action is not taken by the assessor or the county to correct the noncompliance within 45 days from the date that funds are withheld, the board must direct the division, and the division must then be authorized to take such steps as are necessary to ensure compliance, and the county found in noncompliance must reimburse the state for all costs incurred by the state pursuant to this action. If such costs are not reimbursed within 90 days of the date of an invoice for such costs, the state may recover its costs through the deduction of such costs from any state-shared taxes.

    SCHEDULE OF REVIEW

    Present law requires the initial schedule of review and revaluation under the present law must be as determined by the board. Present law requires there to also be an updating of the localized and nonoperating real property of public utilities and modern market telecommunications providers in each county, and such must be accomplished in the same year as other locally assessed properties. All assessing and updating of operating properties of public utility companies and modern market telecommunications providers must be done by the comptroller of the treasury. All expenses for assessing and updating of operating properties of public utilities and modern market telecommunications providers must be paid by the comptroller of the treasury.

    Finally, present law provides that the assessor of property of each county must identify all cemeteries having historic value as determined by the county historian and the cemetery advisory committee. Every cemetery having one or more tombstones must be indicated on the tax maps. Any cemetery which is not less than one-fourth of an acre must be identified as a separate parcel and contain the appropriate symbol.

    This bill deletes all of the present law mentioned above entirely and replaces the present law with the language below.

    REAPPRAISAL

    This bill requires reappraisal to be accomplished in each county in accordance with a reappraisal program adopted by the assessor and county legislative body that

    satisfies the following conditions:

    (1) Includes a plan for the visual inspection of every parcel of real property in the county;

    (2) Includes a plan for the revaluation of every parcel of real property; and

    (3) Specifies the length of the reappraisal cycle in accordance with this bill.

    This bill requires a county to adopt a reappraisal program that requires reappraisal to occur: (i) once per year; (ii) once every two years; (iii) once every three years; or (iv) once every four years. This bill prohibits a county from adopting a reappraisal program that allows for reappraisal to occur less frequently than once every four years. Regardless of the frequency of reappraisal in accordance with this bill, the plan for visual inspection required by this bill must provide that the assessor conduct a visual inspection of each parcel of real property at least as frequently as once every four years.

    This bill requires the plan for revaluation to provide that the assessor revalues every parcel of real property during each reappraisal cycle. If an assessor discovers new improvements to a parcel of real property via visual inspection or otherwise between revaluations, then the improvements must be valued on the same basis as similar improvements are valued as necessary to achieve equalization of values, subject to indexing conducted in this bill

    This bill authorizes that, as part of the program required by this bill, the assessor and county legislative body may, but are not required to, adopt a plan for the annual or biennial indexing of real property values.

    This bill applies to a county reappraisal program beginning on or after July 1, 2025. Each county must adopt a reappraisal program in accordance with this bill by June 30, 2030. A county reappraisal program in effect prior to July 1, 2025, may continue until the conclusion of the existing county reappraisal cycle, at which time, the county must adopt a reappraisal program in accordance with this bill.

    This bill requires the assessor of property to maintain a program of real property sales verification in accordance with procedures and rules established by the state board of equalization. The assessor of property must maintain documentation of the reason for rejection of any sale rejected by the assessor for use in analyzing appraisals.

    COSTS

    This bill provides that in the absence of a written agreement between the county and the cities levying a property tax, the costs to assess properties within a city must be paid one-half by the county and one-half by the city. Regardless of a written agreement between the county and the cities levying a property tax, this bill prohibits the costs to assess property within a city from exceeding the following:

    (1) 90 percent of the assessor's total expenditures on a per parcel basis in those counties that have adopted a one-year reappraisal cycle;

    (2) 80 percent of the assessor's total expenditures on a per parcel basis in those counties that have adopted a two-year reappraisal cycle;

    (3) 70 percent of the assessor's total expenditures on a per parcel basis in those counties that have adopted a three-year reappraisal cycle; or

    (4) 60 percent of the assessor's total expenditures on a per parcel basis in those counties that have adopted a four-year reappraisal cycle.

    This bill requires any city paying one-half of the costs to assess properties pursuant to this bill to pay those costs directly to the county government with jurisdiction over the property being reappraised. In the absence of a written agreement between the county and the cities thereof levying a property tax, the costs must be determined in accordance with the reappraisal cycle and paid in annual installments.

    This bill also requires the assessor of property to submit such plans and reports for reappraisal as the board requires. The board, with the assistance of the division, has the power to approve, modify, or disapprove any proposed plan submitted by the assessor of property, including the power to specify or approve any proposed computer-assisted appraisal system pursuant to minimum standards that the board must adopt in considering a proposed system. All work is subject to the oversight and approval of the division. The division must approve all indexing or revaluation of real property values in accordance with any reappraisal program established pursuant to this bill. The division must also monitor all visual inspections conducted pursuant to this bill.

    PLAN OF EXECUTION

    This bill requires the assessor of property of each county to prepare a plan for carrying out the requirements of this bill and the repayment of reappraisal loans, the equalization of assessments based on reappraisals, and appraisal ratio studies in the assessor's taxing jurisdiction, in the assessor's taxing jurisdiction. The plan must be submitted to the county mayor and the county legislative body for review in the form, manner, and time as determined by the board.

    At such time as determined by the board, this bill requires the assessor to submit the plan and any pertinent resolution of the county legislative body stating its approval or disapproval to the board for the board's approval or other action. Prior to the execution of a contract for reappraisal, the county legislative body must make appropriate arrangements to finance the contract.

    NOTICE

    This bill provides that whenever the classification or subclassification or assessed value of property is changed as a result of indexing or revaluation in accordance with a reappraisal program established pursuant to this bill, the property owner is entitled to notice of such change as otherwise provided by law at least 10 calendar days before the local board of equalization commences its annual session and, in addition, must be given the opportunity to appear at an informal hearing on a day or days scheduled for such hearings. Written notice of any action taken as a result of such hearings must be sent at least 10 days prior to the county board adjournment.

    FAILURE TO COMPLY

    This bill provides that upon a finding by the division that the assessor of property or the county is unable or unwilling to comply with this bill, the director of the division must report such finding to the board.

    This bill requires the board to notify the assessor of property and the county mayor of the nature of the noncompliance and to indicate the action required to correct such noncompliance.

    This bill provides that the assessor of property or the county has 60 days in which to correct such noncompliance. If satisfactory action is not taken by the assessor or the county to correct the noncompliance within 60 days, then the board must direct the division, and the division is then authorized, to take necessary steps to ensure compliance with the requirements of this bill.

    A county found in noncompliance must reimburse the state for all costs incurred by the state pursuant to the action taken to correct the noncompliance. If costs are not reimbursed to the state within 90 days of the date of an invoice for the costs, then the state may recover its costs through the deduction of costs from any state-shared taxes as identified in existing law, otherwise due the county.

    PUBLIC UTILITIES AND MODERN MARKET TELECOMMUNICATION PROVIDERS

    This bill requires localized real property of public utilities and modern market telecommunications providers in each county to be updated in the same year as other locally assessed properties. All assessing and updating of operating properties of public utility companies and modern market telecommunications providers must be done by the comptroller of the treasury in accordance with existing law. All expenses for assessing and updating of operating properties of public utilities and modern market telecommunications providers must be paid by the comptroller of the treasury.

    CEMETERIES

    This bill provides that as part of any reappraisal program conducted pursuant to this bill, the assessor of property of each county must identify all cemeteries having historic value as determined by the county historian and the cemetery advisory committee. Each cemetery having one or more tombstones must be indicated on the tax maps by an appropriate symbol prescribed by the division. Any cemetery that is one-quarter of an acre or more must be identified as a separate parcel and contain the appropriate symbol.

    CLASSIFICATION OF AGRICULTURAL LAND

    Present law requires the assessor to verify the actual agricultural uses claim for the property during the on-site review. This bill changes the on-site review to a visual inspection.

  • FiscalNote for SB1946/HB2057 filed under SB1946
  • House Floor and Committee Votes

              HB2057 by Carr - HOUSE CALENDAR & RULES COMMITTEE:
    H. Placed on Regular Calendar for 3/7/2024 2/29/2024
              Voice Vote - Ayes Prevail

              HB2057 by Carr - HOUSE FINANCE, WAYS, AND MEANS COMMITTEE:
    Rec. for pass; ref to Calendar & Rules Committee 2/27/2024
              Voice Vote - Ayes Prevail

              HB2057 by Carr - HOUSE FINANCE, WAYS, AND MEANS SUBCOMMITTEE:
    Rec. for pass by s/c ref. to Finance, Ways, and Means Committee 2/21/2024
              Voice Vote - Ayes Prevail

              HB2057 by Carr - HOUSE LOCAL GOVERNMENT COMMITTEE:
    Rec. for pass; ref to Finance, Ways, and Means Committee 2/13/2024
              Voice Vote - Ayes Prevail

              HB2057 by Carr - HOUSE PROPERTY & PLANNING SUBCOMMITTEE:
    Rec. for pass by s/c ref. to Local Government Committee 2/7/2024
              Voice Vote - Ayes Prevail

    Senate Floor and Committee Votes

    SB1946 by Walley - SENATE STATE & LOCAL GOVERNMENT COMMITTEE:
    Recommended for passage, refer to Senate Finance, Ways, and Means Committee 2/27/2024
    Passed
              Ayes................................................9
              Noes................................................0

              Senators voting aye were: Briggs, Jackson, Kyle, Lowe, Pody, Stevens, Walley, Yager, Yarbro -- 9.