(a) Any donor may make application to transfer qualified property to a receiving entity as an in-kind payment of transfer taxes.
lawyer at desk

Ask a legal question, get an answer ASAP!
Click here to chat with a lawyer about your rights.

Terms Used In Tennessee Code 67-8-703

  • Appraisal: A determination of property value.
  • Department: means the department of revenue. See Tennessee Code 67-8-702
  • Donor: The person who makes a gift.
  • Donor: means any person responsible for the payment of transfer taxes to the state, including, but not limited to, a personal representative, executor, administrator, individual taxpayer, joint tenant, heir, legatee, devisee, grantee, transferee, trustee, tenant in common, conservator, guardian, custodian, or person interested in an estate or trust. See Tennessee Code 67-8-702
  • In-kind payment: means a payment of transfer taxes or a portion thereof by the transfer to a receiving entity of qualified property. See Tennessee Code 67-8-702
  • Property: includes both personal and real property. See Tennessee Code 1-3-105
  • Qualified property: means an object of significant artistic or historical value, a site of significant historical interest, an interest in real property having recreational, conservational or wildlife value, or an interest in real property having state use value. See Tennessee Code 67-8-702
  • Receiving entity: means the state of Tennessee, any department or agency thereof, any county, city, or other political subdivision of the state, or any state museum or state institution of health or education. See Tennessee Code 67-8-702
  • Transfer taxes: means all the taxes imposed by this chapter, including the inheritance, estate, gift and generation-skipping transfer taxes, and interest and penalties thereon. See Tennessee Code 67-8-702
  • written: includes printing, typewriting, engraving, lithography, and any other mode of representing words and letters. See Tennessee Code 1-3-105
(b) The donor shall first obtain a written appraisal of the qualified property. The donor shall then notify the receiving entity in writing of the desire to offer the qualified property to the receiving entity. The receiving entity shall within a reasonable period of time notify the donor in writing as to whether it is willing to accept the qualified property. Any decision by a receiving entity not to accept the qualified property shall be final and not appealable.
(c) If a receiving entity indicates its willingness to accept the qualified property, the donor shall then submit an application to the department for approval of an in-kind payment containing the following information:

(1) Name and address of donor;
(2) Copy of transfer tax return for which tax is payable, if prepared; otherwise, information concerning taxes to be paid;
(3) Copy of appraisal;
(4) Statement of how the qualified property meets the statutory definition;
(5) A copy of the correspondence with the receiving entity evidencing its willingness to accept the qualified property; and
(6) A statement from the donor or the receiving entity outlining the proposed and potential uses of the qualified property, and the source of funds for support and maintenance of the qualified property.
(d) The department shall have ninety (90) days from the date of receipt of a completed application for in-kind payment to approve or deny the application. The department may request that the donor amend the application, including the valuation, as a condition of approval. If the department approves the application, the receiving entity shall assume title to the property as soon as practicable.
(e) If the department fails to respond to an application for in-kind payment within ninety (90) days of its receipt, the application shall be deemed to be denied. The approval or denial of an application for in-kind payment shall be within the absolute discretion of the department. A denial of an application, either by response or by failure to respond, shall be final, and such a decision shall not be appealable under the Uniform Administrative Procedures Act, compiled in title 4, chapter 5, nor shall such decision be appealable to any court.
(f) The department in its discretion may require the donor to pay for a second appraisal by an appraiser selected by the department whenever the qualified property is unusual or outside of the normal expertise of the department to appraise.
  Previous section
Next section  
 Part 7 Contents