- For Attorneys
I'm unable to determine the taxes you are claiming exemption from, such as transfer tax or real property tax based on assessed value, etc.
Please see the following TN statutes to determine applicability:
67-8-702. Part definitions. —
As used in this part, unless the context otherwise requires:
(1) "Department" means the department of revenue;
(2) "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;
(3) "In-kind payment" means a payment of transfer taxes or a portion
thereof by the transfer to a receiving entity of qualified property;
(4) "Interest in real property having recreational, conservational, or
wildlife value" means any interest in real property that is of unique
value as a scenic, historic, archaeological, scientific, or recreational
resource to the state and that will contribute to the cultural,
recreational, or economic life of the people, or is a unique and critical
habitat for wildlife in the state;
(5) "Interest in real property having state use value" means any
interest in real property that is of unique value to the receiving entity
to carry out its stated purposes;
(6) "Object of significant artistic or historical value" means any
object of art, collection, painting, portrait, mural, photograph,
statue, tablet, carving, bas-relief, engraving, relic, coin, furniture,
textile, basketry, artifact, natural specimen, rare book, author's
papers, or other object of artistic, historical, or technical interest or
of intrinsic cultural value;
(7) "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;
(8) "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;
(9) "Site of significant historical interest" means any real property,
building, or fixture, or any combination thereof, of unique and peculiar
historical significance; and
(10) "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.
67-8-704. In-kind payment — Credit — Deferral — Limitation. —
(a) Upon assumption of title by a receiving entity to property accepted
as an in-kind payment, the department shall credit to the donor against
the amount of taxes owed the valuation of the qualified property approved
in the donor's application. In no case shall any credit allowed by this
part be greater than the amount of tax owed, and any excess value shall
constitute a gift to the receiving entity.
(b) The department shall defer payment of transfer tax, or portion
thereof, that is under review for in-kind payment from the date of
receipt of a completed application, so that the tax due, or portion
thereof, is exempt from interest and penalties during the pendency of an
application. Interest and penalties shall recommence upon the department's
denial of the application.
(c) The department shall not during any fiscal year approve in-kind
payments that have an aggregate value of more than five million dollars
($5,000,000), unless the governor, on application from the department,
permits the department to exceed that limit.
67-5-201. Real property transferred between exempt and nonexempt
(a)(1) In the event real property heretofore exempt under §§ 67-5-203,
67-5-204, 67-5-206 — 67-5-208, 67-5-211 — 67-5-214, 67-5-218, and
67-5-219 is conveyed or transferred by sale, lease or otherwise to a
person, firm or corporation, rendering the status of the property as
nonexempt by reason of the transfer, the nonexempt grantee, lessor or
other nonexempt taxpayer shall be liable for the real estate taxes
thereon from the date of the transfer to the end of the taxable year; and
the state, county or municipal collector of taxes shall collect the real
estate taxes due from the date of the transfer, notwithstanding the
status of the property as of the assessment date of January 1 of each
year. A tax lien shall attach on the date of the transfer as otherwise
provided by law, but the nonexempt grantee shall remain personally liable
for taxes resulting from such transfer of property regardless of any
subsequent transfer that may occur during that tax year.
(2) The state, county and municipal tax collector shall collect the
taxes on a pro rata basis for the current taxable year on and after the
assessment date of January 1.
(3)(A) The grantor or lessor of tax exempt property that is conveyed or
transferred by sale, lease or otherwise to a person, firm or
corporation, rendering the status of the property as nonexempt by reason
of the transfer, shall promptly report to the assessor any change in the
use or ownership of the property that might affect its exempt status.
(B) A grantor or lessor of tax exempt property includes a governmental
entity; department, agency, board, commission, or instrumentality of the
state or local government; industrial development corporation; or any
other agency or authority created by a governmental entity or any other
grantor or lessor of property exempt under this part.
(C) The grantee or lessee of real property that, prior to the transfer
to such grantee or lessee was tax exempt, shall promptly report to the
assessor the change in the use or ownership of such property.
Notwithstanding the provisions of §§ 67-1-1005 and 67-5-1806, the grantee
or lessee of such real property shall be personally liable for all
taxes, and penalties and interest, from the date of the transfer to the
date the assessor is notified of such change in the use or ownership of
property, and the collection of taxes against such grantee or lessee with
respect to such property shall not be barred; provided, however, that no
tax lien shall arise against the real property conveyed to a bona fide
purchaser who records the deed for such property or notifies the assessor
of the change in the use or ownership of such property. The burden of
proving a bona fide sale shall be upon the owner of the property at the
time of such recording or notification.
(b)(1) In the event the ownership of real property that has heretofore
been subject to assessment and taxation is conveyed or transferred to a
person, firm or corporation that is exempt from property assessment and
taxation and the real property is used for purposes that would render the
status of the property as exempt from assessment and taxation under
§§ 67-5-203, 67-5-204, 67-5-207, 67-5-208, and 67-5-211 — 67-5-217, the new
owner of the property shall not be liable for the real property taxes
thereon, from the date of transfer and change of use from a nonexempt
ownership and use to an exempt ownership and use to the end of the
taxable year, notwithstanding the status of the property as of the
assessment date of January 1 of that year.
(2) The assessor of property shall make an assessment of such property
on the basis of its value and use to which it is put following its
transfer; provided, that for the year in which the transfer of property
occurred, the assessment shall be prorated and the owner shall be liable
only for the taxes for the portion of the year that the property was
subject to assessment.
(3) The state, county and municipal tax collector shall collect taxes
on the basis of the assessment as prorated by the assessor of property.
(4)(A) The grantor of nonexempt property that is conveyed or
transferred by sale to a person, firm, or corporation, rendering the
status of the property as exempt by reason of the transfer, shall
promptly report to the assessor any change in the use or ownership of the
property that might affect its nonexempt status.
(B) A grantor of nonexempt property includes any person, firm, or
corporation that is not otherwise exempt under this part. The grantor of
real property that, prior to the transfer to such grantee was nonexempt,
shall promptly report to the assessor the change in ownership or use of
such property. The nonexempt grantor's notice of the change in ownership
or use to the assessor shall be a prerequisite to the grantor seeking a
refund of taxes paid related to exempt ownership or use of the property
occurring after the date of transfer to the tax exempt grantee by sale.