AN ACT to amend Tennessee Code Annotated, Section 67-5-2013, relative to collection of property taxes.
Summary
HB1083 amends Tennessee law governing the collection of property taxes by creating a narrow option for local officials to treat very small personal property tax bills as de minimis. For a personal property tax totaling less than $20 for a specific taxpayer, a county trustee or other property tax collecting official may, if authorized by a local private act, resolution, or ordinance, choose not to bill the tax, not to refer it for further collection, or to waive otherwise due penalty and interest on late payment.
The bill also requires the collecting official to keep a list of these de minimis taxes by taxpayer account and year. If the taxpayer later tenders a tax payment for the same account in a later year, the previously uncollected amount may be collected at that time, so long as collection is not barred by the statute of limitations. The measure applies only in a county with a 2020 or later census population between 366,200 and 366,300, and only if the county legislative body approves it by a two-thirds vote, making it a highly localized, optional policy change.
Impact
HB1083 would amend Tennessee Code Annotated § 67-5-2013 to give qualifying counties a limited tool to reduce administrative costs associated with collecting extremely small personal property tax debts. It does not broadly change property tax rates or statewide collection rules; instead, it authorizes local governments in a narrowly defined population bracket to adopt a de minimis collection policy for amounts under $20, subject to local approval and existing legal limits. The bill affects county trustees and other local tax-collecting officials, and it could reduce billing, referral, and penalty-processing activity for tiny tax balances while preserving the ability to collect those balances later when possible.
Sentiment
Based on the bill text and the absence of recorded committee discussion or votes, the overall sentiment appears neutral and administrative rather than controversial. The proposal is framed as a practical efficiency measure for local tax collection, with no evidence in the provided record of organized opposition or support. Its optional nature and narrow applicability suggest it was designed to be locally tailored rather than politically divisive.
Contention
The main potential point of contention is whether local officials should be allowed to forgo billing or collection efforts on small tax amounts, even if only for de minimis balances under $20. Some may view the measure as sensible cost-saving administration, while others could object to any waiver of tax collection or penalty/interest authority. Another possible issue is the bill’s highly specific population range, which limits the policy to a single county or similarly situated county, raising questions about local favoritism or the use of population-based legislation.