RESOLUTION NO. RS2001-630

A resolution authorizing the deferral of real property taxes for qualified, elderly or disabled residents of Metropolitan Nashville and Davidson County pursuant to Tenn. Code Ann. 7-64-101 et seq.

Whereas, Tenn. Code Ann. 7-64-101(a) authorizes the legislative body of county or municipality to enact by resolution a deferral of payment of all real property taxes on the residence of any single person age sixty-five (65) years of age or older, or any married couple of which both are sixty-five (65) years of age or older, or any person who is totally and permanently disabled, and who owns real property, and who uses and occupies such property as a place of residence; and

Whereas, Tenn. Code Ann. 7-64-101(b), as amended by Public Act, 1998, Chapter 803, Section 1, limits the applicability of Tenn. Code Ann. 7-64-101(a) to any single person age sixty five (65) years of age or older, or to any married couple of which both are sixty-five (65) years of age or older or to any family group which has more than one (1) person residing permanently in the principle residence, whose combined gross income, as defined by the Internal Revenue Code is less than twenty-five thousand dollars ($25,000) a year; and

Whereas, Tenn. Code Ann. 7-64-102(a) limits the applicability of Tenn. Code Ann. 7-64-101(a) to the taxpayer's principal residence and no more than one (1) acre of land in the event that the taxpayer's principal residence is a farm or parcel of land greater than one (1) acre; and

Whereas, Tenn. Code Ann. 7-64-103(a) provides that all applications for deferral must be made annually on or before March 1 of each year, or will be considered for the following tax year; and

Whereas, Tenn. Code Ann. 7-64-103, as amended by Public Act, 1998, Chapter 803, Section 3, establishes the processes for applying for a deferral; and

Whereas, Tenn. Code Ann. 7-64-104, as amended by Public Act, 1998, Chapter 803, Section 4, provides that any such property subject to deferral shall continue to be assessed for the purpose of taxation, and that the unpaid balance of assessed real property taxes, "shall constitute a lien against such property, and shall be subject to the interest rate of six percent (6%) a year. Such accrued taxes shall be a lien of the first priority on the property in the particular local government. Such a lien shall remain in effect until the taxes and interest are paid."; and

Whereas, Tenn. Code Ann. 7-64-105 provides that any such deferral terminates upon the death of the person receiving the deferral or upon the death of that person's surviving spouse if the spouse meets the terms and conditions of the deferral, or upon the sale of the residence; and

Whereas, the provisions of Tenn. Code Ann. 7-64-101 et seq., as amended by Public Act, 1998, Chapter 203, Section 5, "shall have no effect unless [] approved by a two-thirds (2/3) vote of the governing body of any county or municipality to which it may apply."; and

Whereas, it is to the benefit of the citizens of The Metropolitan Government of Nashville and Davidson County to enact such a program.

Now, therefore, be it resolved by the Council of The Metropolitan Government of Nashville and Davidson County:

Section 1. Any single person age sixty-five (65) years of age or older, or any married couple, of which both are sixty-five years (65) years of age or older, or any person who is totally and permanently disabled, who owns real property, and who uses and occupies such property as a place of residence, may apply to the county trustee for a deferral of payment of all real property taxes on such residence.

Section 2. The deferral established in Section 1. of this Resolution shall not apply to any single person age sixty-five (65) years of age or to any married couple of which both are sixty-five years (65) years of age or older, or to any family group which has more than one (1) person residing permanently in the principal residence, whose combined gross income, as defined by the Internal Revenue Code, is greater than twenty-five thousand dollars ($25,000) a year.

Section 3. If the taxpayer's principal residence is on a farm or a parcel of land greater than one (1) acre, the tax deferral granted by this Resolution shall only apply to the principal residence and no more than one (1) acre of land.

Section 4. (a) Applications for deferral of real property taxes shall be made annually on or before March 1 of each year. Any applications received by the trustee's office after this date shall be considered for deferral of real property taxes for the following tax year.
(b) Applications shall be submitted on a form approved by the state division of property assessments for such deferrals.
(c) Such application shall be accompanied by a fee in the amount of six dollars ($6.00) to be used to defray any expenses in the processing of such application.
(d) The trustee's office shall furnish the county assessor of property a copy of each application for deferral of property taxes. Whenever application for deferral of real property taxes is made, the county assessor of the county where the residence is located shall, within ninety (90) days, reassess such property claimed for deferral and forthwith notify the county trustee of the amount of the reassessment and value for tax purposes.
(e) Such applications shall be available for public inspection during the normal business hours of the trustee's office.
(f) After the trustee determines that the applicant meets the provisions of this part, the trustee shall approve such application only after receiving written approval from the holder of a note secured by any mortgage or deed of trust on such residence.
(g) Notice of each approved application for deferral of taxes shall be furnished to the register of deeds by the trustee.

Section 5. (a) Whenever a deferral of real property taxes is granted, assessment of such taxes shall continue on an annual basis; however, they shall not become due and payable until the deferral is terminated.
(b) The unpaid balance of assessed real property taxes shall constitute a lien against such property, and shall be subject to interest at the rate of six percent (6%) a year. Such accrued taxes and such interest shall be a lien of the first priority on the property in favor of the Metropolitan Government. Such a lien shall remain in effect until the taxes and interest are paid.
(c) The tax deferrals created by this part shall not be subject to the statutory penalties imposed on delinquent taxes, and the lien created in the Metropolitan Government shall not be subject to any applicable statute of limitation.

Section 6. (a) Deferrals on payment of real property taxes granted under the terms of this Resolution shall be terminated: (1) Upon the death of the person to whom the deferral was granted and that person's surviving spouse if such spouse meets the terms and conditions of this chapter; or (2) When the residence is sold.
(b) When such termination is by death, such taxes and interest shall be due and payable within eighteen (18) months of such termination or the settlement of the estate, whichever occurs first.
(c) When such termination occurs as a result of the sale of the property, all unpaid taxes and interest thereon shall become due and payable within sixty (60) days. A deed for the sale of such property shall not be accepted for recordation in the office of the county register of deeds until all taxes and interest have been paid.

Section 7. That this Resolution shall take effect from and after its final passage by a two-thirds vote of the Metropolitan Council, the welfare of The Metropolitan Government of Nashville and Davidson County requiring it.

Sponsored By: Howard Gentry, Earl Campbell, Chris Ferrell & Tony Derryberry

LEGISLATIVE HISTORY

Referred to: Budget & Finance Committee
Introduced: June 5, 2001
Adopted: June 5, 2001
Approved: June 7, 2001
By: Mayor Bill Purcell