Amends TCA Title 58, Chapter 2 and Title 67, Chapter 5.

This bill makes changes to the law related to property taxes, as discussed below.<br /> <br /> Under present law, if, after January 1 and before September 1 of any year, commercial and industrial tangible personal property is destroyed, demolished or substantially damaged by fire, flood, wind or any disaster certified by the federal emergency management agency (FEMA), and is not restored and no commercial and industrial tangible personal property is operated in its place before September 1 of that year, then the assessor of property prorates the assessment of the commercial and industrial tangible personal property for the portion of the year prior to the date of such destruction, demolition or substantial damage. <br /> <br /> This bill adds:<br /> <br /> (1) That countywide emergency response frameworks must include assessors of property at the option of an assessor to monitor events related to disasters or emergencies that have affected or have the potential to affect the condition of real or personal property within individual assessors' jurisdictions;<br /> <br /> (2) Assessors of property must be notified when county or municipal governments within their jurisdiction conduct FEMA preliminary damage assessments and must be provided copies of preliminary damage assessments upon request;<br /> <br /> (3) If commercial and industrial tangible personal property is destroyed, demolished, or substantially damaged as a result of a disaster certified by FEMA, the annual assessment of such qualifying personal property in a FEMA-certified county must be prorated as otherwise provided in present law for the actual time the qualifying personal property is not replaced or restored notwithstanding that such personal property is replaced or restored by September 1, if the total time the qualifying personal property is not replaced or restored exceeds 30 days. The owner must apply for this relief to the assessor by September 1 of the following year. The owner must also provide the assessor a listing of the destroyed, demolished, or substantially damaged personal property for which the proration is sought. However, this (3) has no effect as to a particular county or municipality unless approved by two-thirds vote of the county legislative body following a disaster or other specified occurrence; and<br /> <br /> (4) Assessors of property have unrestricted rights in the performance of official duties to enter and inspect property within disaster areas to include all property subject to valuation having been affected or potentially affected by disaster or other related events. <br /> <br /> Present law provides that the assessor has the power and duty to examine any person believed to have any knowledge or information relating to the assessment of property of any taxpayer. This bill adds that all records held, maintained, or created by county and municipal public agencies must be made available to assessors of property for the purposes of property valuation and all other official duties.<br /> <br /> ON APRIL 10, 2023, THE SENATE ADOPTED AMENDMENTS #1 AND #2 AND PASSED SENATE BILL 397, AS AMENDED.<br /> <br /> AMENDMENT #1 changes this bill as follows:<br /> <br /> (1) Adds to this bill that assessors of property and county emergency management officials must coordinate when their respective jurisdictions conduct joint preliminary damage assessments. Final copies of joint preliminary damage assessments must be made available to assessors upon request; <br /> <br /> (2) Clarifies that in the case of damage as a result of a disaster declared by the president of the United States, the annual assessment of an affected building or improvement included in the presidential declaration must be prorated as otherwise provided in present law for the actual time the building or improvement is destroyed and not replaced, or the actual time the building or improvement is substantially damaged, notwithstanding the building or improvement is replaced or restored by September 1, if the total time the building or improvement is destroyed or damaged and not replaced or restored, exceeds 30 days. The owner must apply for this relief to the assessor by September 1 of the following year using a form approved by the director of the state division of the state division of property assessment. However, this (2) has no effect as to a particular county or municipality unless approved by two-thirds vote of the county legislative body following a disaster or other specified occurrence; and<br /> <br /> (3) Clarifies that in the case of damage as a result of a disaster declared by the president of the United States, the annual assessment of commercial and industrial tangible personal property that is destroyed, demolished, or substantially damaged as a result of being located in a county included in the presidential declaration must be prorated as otherwise provided in present law for the actual time the qualifying personal property is not replaced or restored notwithstanding that such personal property is replaced or restored by September 1, if the total time the qualifying personal property is not replaced or restored exceeds 30 days. The owner must apply for this relief to the assessor by September 1 of the following year using a form approved by the director of the state division of property assessments. The owner must also provide the assessor a listing of the destroyed, demolished, or substantially damaged personal property for which the proration is sought. However, this (3) has no effect as to a particular county or municipality unless approved by two-thirds vote of the county legislative body following a disaster or other specified occurrence.<br /> <br /> AMENDMENT #2 clarifies that this bill applies to the tax year beginning on January 1, 2023.<br />