Amends TCA Title 67, Chapter 5 and Title 67, Chapter 6.

This bill authorizes local governing bodies to prorate the 2021 tax assessment for property that was damaged as a result of a FEMA certified disaster between August 20, 2021, and December 31, 2021. Generally under present law, if between January 1 and September 1, a homeowner's real property or a business owner's personal property is destroyed or substantially damaged by fire, flood, wind, or any disaster certified by the federal emergency management agency (FEMA), and is not restored by September 1, the assessor of property must prorate the assessment of the property for the portion of the year prior to the date of such destruction or substantial damage. This bill adds additional circumstances in which the assessor must prorate the assessment of certain property. Under this bill: (1) If, between August 20, 2021, and December 31, 2021, a building or improvement was destroyed or substantially damaged by fire, flood, wind, or any other disaster certified by the federal emergency management agency (FEMA), then the annual assessment of the affected building or improvement in a county included in the FEMA declaration must be prorated for the 2021 tax year in the manner described above. The building or improvement must be prorated for the actual time the building or improvement is destroyed and not replaced, or the actual time the building or improvement is substantially damaged, regardless of whether the building or improvement is restored or replaced by December 31, 2021; provided, that the total time the building or improvement is destroyed or damaged and not replaced or restored, exceeds 30 days. This bill requires the owner of the building or improvement to apply for this relief to the assessor by September 1, 2022. If the tax computed for the 2021 tax year has been paid prior to the proration by the assessor, then the trustee or municipal collector must issue a refund to the owner that portion of the tax paid that resulted from the incorrect assessment; and (2) If between August 20, 2021 and December 31, 2021, commercial and industrial tangible personal property was demolished or destroyed, or substantially damaged by flood, fire, wind, or any other disaster certified by FEMA, then the annual assessment of the qualifying personal property in a FEMA certified county must be prorated for the 2021 tax year in the manner referenced in the above paragraph. The commercial and industrial tangible personal property must be prorated for the actual time the qualifying personal property is not replaced or restored, or the actual time the qualifying personal property is substantially damaged; provided, that the total time the qualifying personal property is not replaced or restored exceeds 30 days. This bill requires the owner of such property to apply for relief to the assessor by September 1, 2022. If the tax computed for the 2021 tax year has been paid prior to the proration by the assessor, then the trustee or municipal collector must refund to the owner that portion of the tax paid that resulted from the incorrect assessment. The owner must provide the assessor a listing of the destroyed, demolished, or substantially damaged personal property for which the proration is sought. This bill will be retroactive to January 1, 2021. This bill requires the local governing body of a county or municipality to approve these provisions by a two-thirds vote in order for the provisions to take effect. This bill will expire on December 31, 2022.