Local Option Property Tax Freeze Act

State

Tennessee

Year

2022

Variations in Receipt of Benefit

No Variation in Receipt of Benefits

Benefit Type

Assessment Freeze

Other

Benefit

The benefit is a property tax freeze. Property taxes are held at the lesser of the value recorded in the year the property owner becomes eligible for the program or the current level.

How is Benefit Disbursed

Credit to the property tax bill

Eligible Property Type

Residential

Characteristics of Eligible Property

Eligibility is limited to the applicant's place of residence. The applicant does not have to live in the property full-time to qualify, but it must be their principal residence for voting purposes. If a person owns considerable acreage, the land subject to the tax freeze may not exceed 5 acres. If a person acquires additional contiguous property after qualifying for the freeze, the contiguous property may be combined into existing property as one parcel of land to be included in the tax freeze.

Eligibility Criteria

Age

Homeowner

Income Ceiling

Principal Residence

Description of Eligibility Criteria

The claimant must be 65 years or older and not have an income that exceeds the limit established annually by the Comptroller of the Treasury. The income level for each county is determined as the greater of (1) the weighted average of the median household income for the age group 65 to 74, and 75 and older who reside in the county the claimant is filing, (2) the applicable state tax relief income limit, or (3) $60,000, if approved by the local legislative body. The lowest income ceiling varies by county and the limits are published annually by the Tennessee Comptroller of the Treasury.

Local Option in Adoption of Program

Local government must take action to opt in

Local Option Regarding Program Features

No local option regarding program features

State Funding for Local Tax Loss

Local government covers all of its tax loss

Record ID

TN104_RR22

Footnotes

If the market value on the property increases as a result of improvements, the tax level to be paid will increase proportionally. The taxpayer must apply annually. Taxpayer may be eligible for other property tax relief programs at the same time.

Sources

Tenn. Code Ann. § 67-5-702;
Tenn. Code Ann. § 67-5-705 (in effect for 2022)
Tenn. Comp. R. & Regs. 0520-4-1-.03;
Tenn. Comp. R. & Regs. 0600-9-.01 ~ 0600-9-.12
Source Constitution: 
Tenn. Const. Art. II, § 28
Tennessee, Comptroller of the Treasury, Tennessee Tax Freeze Jurisdictions (February 2023)
[https://web.archive.org/web/20230208193609/https://comptroller.tn.gov/content/dam/cot/pa/documents/tax-freeze/TaxFreezeJurisdictions.pdf Accessed 09/28/2023]
View Archived Source

Tennessee, Comptroller of the Treasury, Property Tax Freeze Income Limits by County, Tax Year 2022
[https://comptroller.tn.gov/content/dam/cot/pa/documents/tax-freeze/TaxFreezeIncomeLimits2022List.pdf Accessed 03/29/2022]
View Archived Source
Tennessee, Comptroller of the Treasury, Property Tax Freeze (July 2022)
[https://web.archive.org/web/20220705005338/https://comptroller.tn.gov/office-functions/pa/property-taxes/property-tax-programs/property-tax-freeze.html Accessed 09/28/2023]
View Archived Source

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