The University of Tennessee, Knoxville

Tennessee County Municipal Advisory Service

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Personal Property Tax

Reference Number: MTAS-1844
Tennessee Code Annotated
Reviewed Date: September 14, 2016
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Revenue Class: Local Taxes

Fund: General     

Account No.: 31112

Description: Ad valorem taxes levied on personal property used for business purposes within incorporated municipal limits.

Authorization: Article II, Section 28 of the Tennessee Constitution; T.C.A. § 67-1-701 et seq.; T.C.A. § 67-5-101; T.C.A. § 67-5-901.

Requirements or Restrictions: Reference T.C.A.

Current Rate: Statutes provide that the following percentages of full value be used to determine assessments:

  • Public utility tangible personal property, 55 percent;
  • Industrial and commercial tangible personal property, 30 percent; and
  • Other tangible personal property, 5 percent.

Frequency of Payment: Annually, between the first Monday in October and on or before the following March 1, unless the municipality is authorized to establish other due dates.

Late Pay Penalty: A penalty of one-half of one percent (0.5%) and interest of one percent (1%) shall be added on March 1,(unless the municipality is authorized to establish other due dates) following the tax due date and on the first day of each succeeding month, except as otherwise provided in regard to municipal taxes under T.C.A. § 67-5-2010.

Exemptions: Inventories of merchandise held by merchants and businesses for sale and exchange by persons taxable under T.C.A. § 67-5-901(a).

Collection: Personal property schedules mailed out no later than February 1st by the assessor; completed and returned by March 1; collection same as real property tax. Taxes cannot be collected after 10 years from April 1 of the year following the year they become delinquent. T.C.A. § 67-5-1806.

Use Restrictions: None.

Responsible: