Amends TCA Title 67, Chapter 5.

Under present law, after property taxes become delinquent, the county trustee may appoint deputies as necessary for the collection of taxes. In such cases, the county trustee furnishes the deputy with a list of delinquent taxpayers, with the description of the property assessed against each and the amount of taxes due from each. Present law authorizes the deputy county trustees, constables, and deputy sheriffs to whom the delinquent taxpayer lists are so delivered to proceed against the delinquent taxpayers by garnishment proceedings, returnable before any general sessions court in the district where the delinquent resides, or to any court. The garnishment runs in the name of the state for its own behalf and for the use and benefit of the county.<br /> <br /> This bill adds that the county trustee may proceed against the delinquent taxpayers by retaining an agent to collect delinquent personal property taxes, interest, costs, and attorneys' fees. If such an agent is used:<br /> <br /> (1) The county trustee must utilize the purchasing procedures applicable to the county to select and retain the agent; and<br /> <br /> (2) The agent's collection fee must be added to the total amount of delinquent personal property taxes owed, including interest, costs, and attorneys' fees. <br /> <br /> ON APRIL 28, 2021, THE HOUSE ADOPTED AMENDMENTS #1 AND #2 AND PASSED HOUSE BILL 358, AS AMENDED.<br /> <br /> AMENDMENT #1 specifies that a county trustee must utilize the "bidding" rather than "purchasing" procedures applicable to the county to select and retain the agent, and adds a requirement that the county trustee notify the county legislative body of the retention of a collection agent under this bill. This amendment also:<br /> <br /> (1) Caps the collection agent's fee at 30 percent of tangible personal property taxes due;<br /> <br /> (2) Prohibits any provision in a contract entered into under this bill that provides that the compensation paid to the agent is conditioned on increasing tangible personal property tax collections in the county;<br /> <br /> (3) Prohibits a collection agent from communicating with the delinquent taxpayer or proceeding upon the delinquent taxpayer's property unless authorization to take such action is provided in the contract;<br /> <br /> (4) Requires collection agents acting under this bill to comply with the Tennessee Collection Service Act;<br /> <br /> (5) Requires that any collection agent retained pursuant to this bill be licensed and in good standing with the Tennessee collection service board;<br /> <br /> (6) Requires that any actions instituted under this bill be in the name of the county trustee as plaintiff or claimant; and<br /> <br /> (7) Prohibits retention of a collection agent who also performs audit procedures to collect delinquent tangible personal property taxes under this bill.<br /> <br /> This amendment repeals this bill's provisions effective July 1, 2024.<br /> <br /> AMENDMENT #2 changes from the "county trustee" to "the taxing jurisdiction" the party in whose name all foreclosures, seizures, litigation, or other judicial or nonjudicial proceedings to enforce a tax lien or any similar rights to collect delinquent tangible personal property taxes must be.<br />