Each year, the Tennessee General Assembly funds the Tennessee Tax Relief Program to provide property tax relief for low-income elderly, disabled, or disabled veteran homeowners or their surviving spouses. This year the program will receive approximately $41 million in state funding. The tax relief program can be found in T.C.A. § 67-5-701 through 67-5-704.
When a county goes through a ratio study, the tax rate is adjusted by the ratio thereby reducing the amount of tax relief funding given to taxpayers during that tax year.
What does this mean for taxpayers who qualify? Potentially less tax relief funding for participants in the program.
It is important for each trustee to do a year to year comparison to determine the impact of the ratio study on their tax relief participants.
The programs below are affected by a ratio study:
67-5-702. Elderly low-income homeowners.
(b)(1) In determining the amount of relief to a taxpayer, the effective assessed value on the first twenty-seven thousand dollars ($27,000), or such other amount as set forth in the general appropriations act or as adjusted pursuant to subdivision (a)(3)(B), of full market value shall be multiplied by a tax rate that has been adjusted to reflect the relationship between appraised value and market value in that jurisdiction, as determined by the state board of equalization.
67-5-703. Disabled homeowners.
(b)(1) In determining the amount of relief to a taxpayer, the effective assessed value on the first twenty seven thousand dollars ($27,000), or such other amount as set forth in the general appropriations act or as adjusted pursuant to subdivision (a)(3)(B), of full market value shall be multiplied by a tax rate that has been adjusted to reflect the relationship between appraised value and market value in that jurisdiction, as determined by the state board of equalization.
67-5-704. Disabled veteran's residence.
(a)(3) In determining the amount of relief to a taxpayer, the effective assessed value on the first one hundred seventy-five thousand dollars ($175,000) of full market value shall be multiplied by a tax rate that has been adjusted to reflect the relationship between appraised value and market value in that jurisdiction, as determined by the state board of equalization.
Click the button below to view the current ratio of each county:
It’s important that the trustee and the assessor work together to ensure the success of the tax relief program and to minimize any potential impacts to taxpayers participating in the program. If you have any questions, please contact your Property Assessment Consultant.