Taxes, Real Property - As enacted, authorizes, until June 30, 2041, a county or municipality that levies a property tax to pay a property tax refund owed to a taxpayer through annual installments applied as credits again, the official text

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                             PUBLIC CHAPTER NO. 1049

                                                    SENATE BILL NO. 198

                                                               By Haile

                                             Substituted for: House Bill No. 162

                                                        By Gant, Crawford

AN ACT to amend Tennessee Code Annotated, Title 67, relative to taxes.

BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF TENNESSEE:

          SECTION 1. Tennessee Code Annotated, Section 67-5-1809, is amended by designating the
existing language as subsection (a) and adding the following as a new subsection (b):

                    (b)(1) Notwithstanding this section or another law to the contrary, a county or
                    municipality that levies a property tax pursuant to this chapter may pay a property tax
                    refund owed to a taxpayer through annual installments applied as credits against the
                    taxpayer's future property taxes if:

                              (A) The county or municipality and the taxpayer agree, pursuant to a written
                    settlement agreement of a property tax dispute or disputes filed pursuant to § 67-5-
                    1412, § 67-5-1501, or § 67-5-1511, that the refund will be applied in accordance with
                    this subsection (b). The written settlement agreement must:

                                        (i) Contain a provision wherein the taxpayer waives any penalties and
                              interest that would otherwise accrue on the refund pursuant to§ 67-5-1512(d);

                                        (ii) Be signed by the chief elected official of the municipality or county
                              and the taxpayer or the taxpayer's duly authorized representative; and

                                        (iii) Be filed with the comptroller of the treasury no later than thirty (30)
                              days after the agreement is signed by all parties;

                              (8) The refund is paid in full no later than ten (10) years after the date the
                    written settlement agreement is signed by all parties;

                              (C) Each annual installment that comprises the total refund is applied to the
                    future property taxes of the same parcel or parcels that are the subject of the property
                    tax dispute or disputes;

                              (D) The total refund owed to the taxpayer by the municipality or county is
                    greater than five hundred thousand dollars ($500,000); and

                              (E) The county or municipality is authorized to accept prepayments and partial
                    payments of property taxes under§§ 67-5-1801 (e) and 67-5-1808.

                    (2) This subsection (b) is repealed June 30, 2041.

          SECTION 2. Tennessee Code Annotated, Section 67-5-1512(d), is amended by adding the
following language ~s a new subdivision:

                    (4)(A) Notwithstanding another law to the contrary, a taxpayer may waive any and all
                    penalties and interest on a refund as part of a written settlement agreement entered
                    into pursuant to § 67-5-1809(b). When the taxpayer agrees to such waiver, all
SB 198
                    penalties and interest cease accruing, and any interest previously accrued is no
                    lc:mger due to the taxpayer.
                              (8) This subdivision (d)(4) is repealed June 30, 204f.

          SECTION 3. This act takes effect upon becoming a law, the public welfare requiring it.

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         SENATE BILL NO. 198

PASSED:  April 21, 2026

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                                                     RANDu1~11v1cNALLY

                                                 SPEAKER OF THE SENATE

                         CAME~SEXTON,SPEAKER
                         HOUSE OF REPRESENTATIVES

:x;z""J.. Mr.u APPROVED this ___.....___ day of  I\  2026
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