The University of Tennessee, Knoxville

Tennessee County Municipal Advisory Service

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Housing Authority in-Lieu-of-Tax

Reference Number: MTAS-1874
Tennessee Code Annotated
Reviewed Date: September 14, 2016
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Revenue Class: Intergovernmental Revenue

Fund: General

Account No.: 33310

Description: Payments in lieu of taxes from local housing authority, based on gross rent receipts. Housing authorities “shall agree” to pay in-lieu-of taxes or special assessments not to exceed the cost of services, improvements, or facilities provided. A similar requirement provides that nonprofit housing corporations providing low-cost housing for elderly or handicapped people must agree to make in-lieu-of-tax payments for any project exceeding 12 units occupied after January 1, 1990. Bonds and notes of a housing authority are issued for a public purpose and together with the interest shall be exempt from taxation.

Authorization: T.C.A. § 67-5-206; T.C.A. § 67-5-207

Requirements or Restrictions: Subject to federal housing law and regulations. There also are several qualifications for nonprofit housing corporations that must be met to be eligible for the payment in-lieu-of taxes listed under T.C.A. § 67-5-207.

Current Rate: Varies.

Frequency of Payment: Varies.

Late Pay Penalty: N/A

Exemptions: N/A

Collection: Varies.

Use Restrictions: None.

Responsible: