(a)

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Terms Used In Tennessee Code 67-6-222

  • Lien: A claim against real or personal property in satisfaction of a debt.
  • Person: includes any individual, firm, co-partnership, joint venture, association, corporation, estate, trust, business trust, receiver, syndicate, any governmental agency whose services are essentially a private commercial concern, or other group or combination acting as a unit, in the plural as well as the singular number. See Tennessee Code 67-6-102
  • Property: includes both personal and real property. 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
  • Year: means a calendar year, unless otherwise expressed. See Tennessee Code 1-3-105
(1) There is created in the state treasury a special fund to be known as the telecommunications ad valorem tax reduction fund, which shall be administered by the comptroller of the treasury. The moneys in the fund shall be used solely and exclusively to pay the expenses incurred by the comptroller of the treasury in administering the fund and implementing subsection (b) and to make the ad valorem tax equity payments authorized by subsection (b). The moneys in the fund shall be invested in the same manner as the moneys in the state general fund. Interest earned on investment of moneys in the fund shall be deposited in and credited to the fund.
(2) On or before June 1, 2007, and on or before June 1 of each year thereafter, any moneys in the telecommunications ad valorem tax reduction fund as of March 1 of each year that are in excess of the amount necessary to make the payments pursuant to subsection (b) shall be deposited into the state general fund and allocated pursuant to § 67-6-103(a).
(b)

(1)

(A) Pursuant to the rules of this subsection (b), every person providing telecommunications services subject to tax under this chapter shall be entitled to an ad valorem tax equity payment in an amount equal to the sum of:

(i) Twenty-seven and twenty-seven hundredths percent (27.27%) of the aggregate ad valorem taxes paid to political subdivisions of this state relating to property assessed with a lien date on or after January 1, 2002, with respect to such person’s public utility property, as defined in § 67-5-501(8)(B), which is real property; and
(ii) Forty-five and forty-five hundredths percent (45.45%) of the aggregate ad valorem taxes paid to political subdivisions of this state relating to property assessed with a lien date on or after January 1, 2002, with respect to such person’s public utility property, as defined in § 67-5-501(9)(B), that is personal property.
(B) The payment allowed by this subsection (b) shall be based on the date that the respective ad valorem taxes are paid, regardless of the date on which such taxes were originally due.
(2) On or before May 1, 2007, and on or before May 1 of each year thereafter, every telephone company entitled to a payment under this subsection (b) shall notify the comptroller of the treasury in writing of the amount of such payment and the basis for claiming such payment.
(3) On or before June 1, 2007, and on or before June 1 of each year thereafter, the comptroller of the treasury shall make all payments allowed by this subsection (b). If the comptroller of the treasury fails to make such payment within the time prescribed, the telephone company entitled to such payment may file suit against the comptroller of the treasury in chancery court in the appropriate county in this state.
(4) The amount of the payments made pursuant to this subsection (b) in any year shall be limited to the amount contained in the telecommunications ad valorem tax reduction fund on March 1 of such year, after deduction for the reasonable administrative expenses incurred by the comptroller of the treasury. To the extent that the amount contained in the telecommunications ad valorem tax reduction fund, after deduction for the comptroller of the treasury’s reasonable administrative expenses, does not equal or exceed the total amount of payments allowed by this subsection (b) such payments shall be proportionately reduced by the amount of the shortfall. The comptroller of the treasury shall determine the amount of any reductions pursuant to this subdivision (b)(4).
(5) In the event that the ad valorem tax liability of a company is reduced for any year with respect to which such company has received an ad valorem tax equity payment pursuant to this section, thereby entitling such company to a refund of ad valorem taxes, such company shall repay the portion of such ad valorem tax equity payment attributable to such reduction within sixty (60) days of receiving notice of such reduction. All such repayments shall be credited to the ad valorem tax reduction fund.
(c) The telecommunications ad valorem tax reduction fund created by this section is discontinued effective June 2, 2017, subject to the following:

(1) On or before June 1, 2017, the comptroller of the treasury shall make all payments that are required by subsection (b). Any moneys remaining in the telecommunications ad valorem tax reduction fund as of June 1, 2017, that are in excess of the amount necessary to make the payments must be allocated pursuant to § 67-6-103(a); and
(2) No person is entitled to any payment under subdivision (c)(1), unless the payment is claimed on or before May 1, 2017.
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