(a)

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Terms Used In Tennessee Code 67-5-201

  • Collector: means in the case of any tax entity, other than a county, that collects its own taxes, assessments, or other charges secured by property, the officer of such tax entity responsible for collecting such taxes, assessments, or charges. See Tennessee Code 67-5-105
  • Contract: A legal written agreement that becomes binding when signed.
  • Corporation: A legal entity owned by the holders of shares of stock that have been issued, and that can own, receive, and transfer property, and carry on business in its own name.
  • Deed: The legal instrument used to transfer title in real property from one person to another.
  • Grantor: The person who establishes a trust and places property into it.
  • Lease: A contract transferring the use of property or occupancy of land, space, structures, or equipment in consideration of a payment (e.g., rent). Source: OCC
  • Lien: A claim against real or personal property in satisfaction of a debt.
  • Person: includes a corporation, firm, company or association. See Tennessee Code 1-3-105
  • Property: includes both personal and real property. See Tennessee Code 1-3-105
  • Real property: Land, and all immovable fixtures erected on, growing on, or affixed to the land.
  • real property: include lands, tenements and hereditaments, and all rights thereto and interests therein, equitable as well as legal. See Tennessee Code 1-3-105
  • State: when applied to the different parts of the United States, includes the District of Columbia and the several territories of the United States. See Tennessee Code 1-3-105
  • Taxpayer: means any owner of property subject to taxation or any party liable for property taxes. See Tennessee Code 67-5-105
  • Year: means a calendar year, unless otherwise expressed. See Tennessee Code 1-3-105
(1) In the event real property heretofore exempt under §§ 67-5-203, 67-5-204, 67-5-206 – 67-5-208, 67-5-211 – 67-5-214, 67-5-218, and 67-5-219 is conveyed or transferred by sale, lease or otherwise to a person, firm or corporation, rendering the status of the property as nonexempt by reason of the transfer, the nonexempt grantee, lessor or other nonexempt taxpayer shall be liable for the real estate taxes thereon from the date of the transfer to the end of the taxable year; and the state, county or municipal collector of taxes shall collect the real estate taxes due from the date of the transfer, notwithstanding the status of the property as of the assessment date of January 1 of each year. A tax lien shall attach on the date of the transfer as otherwise provided by law, but the nonexempt grantee shall remain personally liable for taxes resulting from such transfer of property regardless of any subsequent transfer that may occur during that tax year.
(2) The state, county and municipal tax collector shall collect the taxes on a pro rata basis for the current taxable year on and after the assessment date of January 1.
(3)

(A) The grantor or lessor of tax exempt property that is conveyed or transferred by sale, lease or otherwise to a person, firm or corporation, rendering the status of the property as nonexempt by reason of the transfer, shall promptly report to the assessor any change in the use or ownership of the property that might affect its exempt status.
(B) A grantor or lessor of tax exempt property includes a governmental entity; department, agency, board, commission, or instrumentality of the state or local government; industrial development corporation; or any other agency or authority created by a governmental entity or any other grantor or lessor of property exempt under this part.
(C) The grantee or lessee of real property that, prior to the transfer to such grantee or lessee was tax exempt, shall promptly report to the assessor the change in the use or ownership of such property. Notwithstanding §§ 67-1-1005 and 67-5-1806, the grantee or lessee of such real property shall be personally liable for all taxes, and penalties and interest, from the date of the transfer to the date the assessor is notified of such change in the use or ownership of property, and the collection of taxes against such grantee or lessee with respect to such property shall not be barred; provided, however, that no tax lien shall arise against the real property conveyed to a bona fide purchaser who records the deed for such property or notifies the assessor of the change in the use or ownership of such property. The burden of proving a bona fide sale shall be upon the owner of the property at the time of such recording or notification.
(b)

(1) In the event the ownership of real property that has heretofore been subject to assessment and taxation is conveyed or transferred to a person, firm or corporation that is exempt from property assessment and taxation and the real property is used for purposes that would render the status of the property as exempt from assessment and taxation under §§ 67-5-203, 67-5-204, 67-5-207, 67-5-208, and contract exemptions” class=”unlinked-ref” datatype=”S” sessionyear=”2021″ statecd=”TN” title=”67″>67-5-211 – 67-5-217, the new owner of the property shall not be liable for the real property taxes thereon, from the date of transfer and change of use from a nonexempt ownership and use to an exempt ownership and use to the end of the taxable year, notwithstanding the status of the property as of the assessment date of January 1 of that year.
(2) The assessor of property shall make an assessment of such property on the basis of its value and use to which it is put following its transfer; provided, that for the year in which the transfer of property occurred, the assessment shall be prorated and the owner shall be liable only for the taxes for the portion of the year that the property was subject to assessment.
(3) The state, county and municipal tax collector shall collect taxes on the basis of the assessment as prorated by the assessor of property.
(4)

(A) The grantor of nonexempt property that is conveyed or transferred by sale to a person, firm, or corporation, rendering the status of the property as exempt by reason of the transfer, shall promptly report to the assessor any change in the use or ownership of the property that might affect its nonexempt status.
(B) A grantor of nonexempt property includes any person, firm, or corporation that is not otherwise exempt under this part. The grantor of real property that, prior to the transfer to such grantee was nonexempt, shall promptly report to the assessor the change in ownership or use of such property. The nonexempt grantor’s notice of the change in ownership or use to the assessor shall be a prerequisite to the grantor seeking a refund of taxes paid related to exempt ownership or use of the property occurring after the date of transfer to the tax exempt grantee by sale.
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