The University of Tennessee, Knoxville

Tennessee County Municipal Advisory Service

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Interest and Penalties: Property Tax

Reference Number: MTAS-1847
Tennessee Code Annotated
Reviewed Date: August 10, 2016
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Revenue Class: Local Taxes

Fund: General     

Account No.: 31300

Description: Revenue received from interest and penalties on delinquent property tax payments.

Authorization: T.C.A. § 67-1-701 et seq.; T.C.A. § 67-1-801 et seq.; T.C.A. § 67-5-2010.

Requirements or Restrictions: N/A

Current Rate: Penalty of 0.5 percent and interest of 1.0 percent imposed on March 1 and on the first day of each additional month, except as otherwise provided in reference to municipal taxes.

Frequency of Payment: N/A

Late Pay Penalty: N/A

Exemptions: For cities in any county having a population of not less than 24,600 nor more than 24,700 according to the federal census, upon approval by two-thirds of the governing body, the rate of penalty and interest may be reduced to an amount not less than 12 percent per year in the aggregate. In addition, members serving in the armed services in an active hostility outside the U.S. have additional time before penalties and interest accrue. T.C.A. § 67-5-2011.

Collection: Penalty and interest are collected, along with delinquent property taxes. T.C.A. § 67-5-2001 et seq.

Use Restrictions: None.