If any buildings or improvements on your property were demolished or substantially damaged by the recent floods and are not restored or other improvements built in their place before September 1, the local assessor of property is required to make an adjustment to your property tax assessment. Tenn. Code Ann. § 67-5-603(a). The adjustment will be based on the value of the property after the destruction or damage to the improvements even though there was no damage to the property as of January 1; however, the adjustment in the assessment is prorated for the portion of the year prior to the date of destruction or damage. “Substantial damage” as used in this tax relief provision means that the improvement has been rendered unfit for use or occupancy or when such damage has reduced the value of the improvement by more than fifty percent (50%). Tenn. Code Ann. § 67-5-603(a)(3).
Commercial and Industrial Personal Property
If any of your commercial and industrial tangible personal property was destroyed, demolished or substantially damaged by the recent floods, or by fire, wind or any disaster certified by the federal emergency management agency (FEMA) after January 1 and before September 1, and is not restored and no other commercial and industrial property is operated in its place before September 1, the local assessor is required to prorate the commercial and industrial personal property assessment for the portion of the year prior to the date of destruction, demolition or substantial damage. Tenn. Code Ann. § 67-5-606.
To read the complete newsletter, click here.