Does Tennessee law let a city pay less than half of the cost of reappraising property within the city if the county hasn't agreed, and can the county assessor withhold the city's tax rolls if the city refuses to pay its share?

Plain-English summary

Speaker Pro Tempore Curtis Johnson asked two questions about how Tennessee cities and counties share reappraisal costs. The AG addressed each in turn.

Q1 (Can a city unilaterally pay less than half?). No. Under Tenn. Code Ann. § 67-5-1601(c)(2), a city is generally required to pay one half of the "local costs of reappraisal of properties within the city" and must pay that amount directly to the county during the fiscal year in which the reappraisal is finalized. The city and county can agree on a different split, but the city cannot decide on its own to contribute less. Absent agreement, the 50% obligation is fixed.

Q2 (If the city refuses, can the county assessor withhold the city's tax rolls?). No. The county assessor is statutorily required under Tenn. Code Ann. § 67-5-807 to identify all taxable property in a way that lets tax rolls be provided for each taxing entity within the assessor's jurisdiction, and to separate property by municipal limits. The AG found no legal authority allowing the assessor to withhold tax rolls from a city that has not paid its share. On top of that, tax rolls are public records that any citizen can view.

The opinion does not address what remedies the county has if a city refuses to pay its share; that would be a contract or collection action in court. It just confirms that holding the tax rolls hostage is not one of the remedies.

Currency note

This opinion was issued in 2017. Subsequent statutory amendments, court decisions, or later AG opinions may have changed the analysis. Treat this page as historical context, not current legal advice. Verify current law before relying on any specific rule, deadline, or remedy mentioned here.

Background and statutory framework

Tenn. Code Ann. § 67-5-1601(c)(2). Requires a city to pay one half of the local costs of reappraisal of properties within the city, payable directly to the county during the fiscal year in which the reappraisal is finalized. The statute allows the city and county to agree on a different amount, but the AG read that as a bilateral agreement, not a city's unilateral choice.

Tenn. Code Ann. § 67-5-807 (assessor's tax-roll duties).

• (a): The assessor must "identify all taxable property on the assessor's assessment records in such manner that tax rolls can be provided for each taxing entity within the assessor's jurisdiction."
• (d)(1): The assessor must "place all the property within the limits of any given municipality so that it will be separate from the other property" and "show the aggregate valuation of all property within the limits of each incorporated town, city, or taxing district."
• (d)(2): For real property, the tax books must show "the name of the owner, if known, the description of each lot, tract, or parcel of land, and the value thereof."

Tenn. Code Ann. § 67-5-1701(a). On general reappraisal, requires the county assessor to certify the total assessed value of taxable property within each jurisdiction to the governing bodies of the county and of each municipality within the county.

Tax rolls are public records. The AG cites Hines v. State, No. M2004-01610-CCA-RM-PD, 2004 WL 1567120, at *20 (Tenn. Crim. App. July 14, 2004), as authority that tax rolls are public records any citizen may view.

No statutory hold on tax rolls for nonpayment. Tennessee's reappraisal-cost statute creates an obligation on the city to pay half (or whatever the city and county agreed to), but it does not provide that the assessor or county may withhold the tax rolls as leverage. The AG found no other statutory authority for that remedy.

Common questions

Q: How much does a Tennessee city have to pay for the cost of reappraising property in the city?
A: One half of the local cost, paid directly to the county during the fiscal year in which the reappraisal is finalized, unless the city and county agree on a different amount. Tenn. Code Ann. § 67-5-1601(c)(2).

Q: Can the city negotiate to pay less than half?
A: Yes, but only by agreement with the county. The statute lets the city and county agree on a different amount; it does not let the city decide alone.

Q: If the city doesn't pay, can the county assessor refuse to give the city its tax rolls?
A: No. The county assessor has a statutory duty to prepare tax rolls for each taxing entity. The AG found no legal authority for the assessor to withhold them based on nonpayment, and tax rolls are public records besides.

Q: What can the county do if the city refuses to pay?
A: This opinion does not address remedies. The county's normal options would be the kinds available for any disputed payment between governmental entities (negotiation, arbitration if provided, or court action), but the question was not before the AG.

Q: Can anyone other than the city see the tax rolls?
A: Tax rolls are public records. The opinion cites Hines v. State for the principle that any Tennessee citizen is entitled to view them.

Citations and references

Statutes:

• Tenn. Code Ann. § 67-5-1601(c)(2)
• Tenn. Code Ann. § 67-5-807(a), (d)(1), (d)(2)
• Tenn. Code Ann. § 67-5-1701(a)

Cases:

• Hines v. State, No. M2004-01610-CCA-RM-PD, 2004 WL 1567120 (Tenn. Crim. App. July 14, 2004)

Source

• Landing page: https://www.tn.gov/attorneygeneral/opinions.html
• Original PDF: https://www.tn.gov/content/dam/tn/attorneygeneral/documents/ops/2017/op17-50.pdf

Original opinion text

STATE OF TENNESSEE
OFFICE OF THE ATTORNEY GENERAL
November 15, 2017
Opinion No. 17-50

Payment of Local Costs of Reappraisal of Properties within a City

Question 1

Does Tenn. Code Ann. § 67-5-1601(c)(2) grant authority to a municipality to unilaterally contribute an amount less than one half of the amount the county taxpayers have spent?

Opinion 1

Under Tenn. Code Ann. § 67-5-1601(c)(2), a city generally is required to pay one half of the local costs of reappraisal of properties within the city. The city and county may agree on a different amount, but the city may not unilaterally choose to pay a lesser amount.

Question 2

When a municipality refuses to contribute the reappraisal cost directly to the county as described under Tenn. Code Ann. § 67-5-1601(c)(2), is the county assessor still required to provide the tax roll to the municipality?

Opinion 2

Under Tenn. Code Ann. § 67-5-807, the county assessor is required to prepare and provide tax rolls for each taxing entity within the assessor's jurisdiction. The statute does not authorize the assessor to withhold a city's tax rolls.

ANALYSIS

In the absence of an agreement with the county to the contrary, a city is required to pay one half of the "local costs of reappraisal of properties within a city." Tenn. Code Ann. § 67-5-1601(c)(2). As indicated by the statute, the city and county may agree for the city to pay a different amount; however, the city may not unilaterally decide to pay a lesser amount. The city remains responsible for paying one half of the costs of reappraising property within the city. The city must pay the costs directly to the county government "during the fiscal year in which the reappraisal is finalized." Id.

The county assessor of property is statutorily required to "identify all taxable property on the assessor's assessment records in such manner that tax rolls can be provided for each taxing entity within the assessor's jurisdiction." Tenn. Code Ann. § 67-5-807(a). The county assessor has the duty, "in making out the tax books, to place all the property within the limits of any given municipality so that it will be separate from the other property," and to "show the aggregate valuation of all property within the limits of each incorporated town, city, or taxing district." Tenn. Code Ann. § 67-5-807(d)(1); see also Tenn. Code Ann. § 67-5-1701(a) (requiring county assessor, upon general reappraisal of property, to "certify to the governing bodies of the county and of each municipality within the county the total assessed value of taxable property within [each] jurisdiction"). Moreover, with regard to real property, the tax books must "show the name of the owner, if known, the description of each lot, tract, or parcel of land, and the value thereof." Tenn. Code Ann. § 67-5-807(d)(2).

This Office is aware of no legal authority for the county assessor to withhold the tax rolls from a city, even if the city has not paid one half of the reappraisal costs of properties within the city as required by Tenn. Code Ann. § 67-5-1601(c)(2). In fact, the tax rolls are public records that any citizen of the state is entitled to view. See Hines v. State, No. M2004-01610-CCA-RM-PD, 2004 WL 1567120, at *20 (Tenn. Crim. App. July 14, 2004), perm. app. denied (Tenn. Nov. 29, 2004).

HERBERT H. SLATERY III
Attorney General and Reporter

ANDRÉE SOPHIA BLUMSTEIN
Solicitor General

MARY ELLEN KNACK
Senior Counsel

Requested by:
The Honorable Curtis Johnson
Speaker Pro Tempore
15 Legislative Plaza
Nashville, Tennessee 37243