What We Do
From Tennessee State Comptroller of the Treasury, Division of Property Assessments & State Board of Equalization
The Tennessee Code Annotated, under Title 67, Chapter 5, places specific property assessment burdens on both the state and individual county assessors. It is important at the start of any discussion of assessment/appraisal tasks and the division of labor between the state and local assessors, to distinguish between the assessing and the actual taxation of those properties. Essentially, the law has fleshed out the very basic property tax and property assessor framework laid out in the state constitution. DPA monitors, at the direction of the State Board of Equalization, local property assessors for compliance with assessment and appraisal procedures and acts as the first line of defense in maintaining tax fairness and equity across the state.
In order to conduct these activities successfully, the individuals in the assessor office need to be proficient at several implied work elements:
- Map parcel (with/without improvements)
- Measure and list property improvements
- Use value schedules
- Conduct leasehold analysis
- Verify sales
- Prepare and maintain assessment rolls
- Prepare assessment notices
- Prepare and maintain property tax rolls
- Prepare property tax notices
- Records management
Steps in the Process:
- For real property assessments, it all begins with the creation of a parcel. Once created, the assessor of property goes to work. The parcel must be mapped in its proper location. The conditions surrounding the sale of the parcel must be understood. Finally, the parcel must be appraised, properly classified for assessment, and added to the tax roll.
- Change is inevitable, and the assessor of property is responsible for keeping track of changes on every parcel. In many cases, structures are built. Accurate information is gathered by the assessor’s office and entered into a computer-assisted mass appraisal system to ensure fair and equitable values. Whether built new, recently modified, or destroyed, the assessor’s office is responsible for maintaining accurate records on all assessable structures.
- Tennessee law requires every county to undergo a countywide revaluation of all real property on a 2-, 4-, 5-, or 6-year reappraisal cycle. The assessor of property is responsible for the cyclical revaluation with some assistance and oversight from the Comptroller’s Division of Property Assessments. The goal is fair and equitable assessments that reflect market value as of January 1 of the revaluation year.
- Land and buildings are real property, but they only make up a portion of the property tax base for local jurisdictions in Tennessee. The other major type of property subject to property tax is tangible personal property that is owned or used by commercial or industrial businesses. A few common examples are vehicles, computers, furniture, and machinery. Businesses self-report their tangible personal property, which is then reviewed, assessed, and potentially audited by the assessor of property.
- All non-exempt property in Tennessee is subject to taxation, but it may not all be appraised at current market value as of the same date due to Tennessee’s cyclical reappraisal cycles. In accordance with State law, Assessors of property revalue real property once every 2, 4, 5, or 6 years but revalue personal property annually. The Comptroller’s Office of State Assessed Properties revalues public utility and transportation properties annually. To ensure a level playing field across all these types of property, an equalization factor is developed through an appraisal ratio study.
For more specific information, check our department’s pages, read the FAQ, or Contact Us.