Exemption Processing Fees

Persons filing applications for property tax exemptions at the State Board of Equalization must now pay a fee to defray part of the cost of processing applications at the state level. The non-refundable fee is proportionate to the total appraised value [land and structure(s) or personal property as determined by the County Assessor of Property] of the property being considered for exemption as follows:

If the property under consideration makes up more than one parcel on the assessor’s records, a separate application must be submitted for each parcel but you may total the value (improvements + land) represented by contiguous parcels for the purposes of the fee. Be sure to include the estimated value upon completion for buildings under construction or to be constructed in the calculation of the fee submitted, if you intend to seek exemption on these buildings. Please remit a check or money order payable to the Comptroller of the Treasury when you file your application.

An additional fee will be due from persons appealing the initial determination on an application.

Authority: Tenn. Code Ann §67-5-212

Required Supporting Documents for Exemption Applications

For further information you may e-mail us at sb.web@state.tn.us

Supporting documents required to be submitted with the application(s) (photocopies are acceptable):

*Note: If multiple applications are submitted in the same county, submit only one copy of C, D, E, F below at the time of filing.

1. If the application is for real estate, the recorded (warranty or quitclaim) deed which evidences ownership by the organization.
   
2. If the application is for personal property, a list (which includes the value) or assessors schedule of the items for which exemption is sought.
   
3. If incorporated; the corporate charter, bylaws, certificate of authority (if incorporated outside of Tennessee).
   
4. If unincorporated, documents stating the purpose and governance of the organization, (e.g. articles of faith, bylaws, mission statement, etc.).
   
5. Copy of most recent IRS Form 990, if required to file.
   
6. If not required to file Form 990, submit organizations financial records, e.g. income and expense statement for last fiscal year.
   
7. If the application is for real estate, a photograph is required for each property.

Application Instructions For Religious, Charitable, Educational or Scientific Use Property Tax Exemptions

I.  WHY YOU MUST APPLY

The following three requirements must be met before any property can be granted exempt status:

1. property must be owned by a religious, charitable, scientific or nonprofit educational institution.
   
2. property must be actively used purely and exclusively for an exempt purpose.
   
3. an application for exemption must be submitted to the State Board of Equalization including the appropriate fee and supporting documentation.

You, as a representative of your organization are about to complete the third requirement. Please provide the necessary information so that our office can determine if your organization and the use it makes of the property meet other requirements for exemption. Send the original yellow application form, supporting documentation and the appropriate fee to the above-referenced address,a copy of the application and the supporting documents to the assessor of the county in which the property is located. APPLICATIONS FOR EXEMPTION ARE NOT AVAILABLE ONLINE. Be sure to keep a copy of your application for your files.

II.   DEADLINE DATES/EFFECTIVE DATES

The date the application is received by this office and the date the use began determine the effective date of an approved exemption. The effective date for an approved application that was received by May 20 of a particular year will be January 1 of that year or the date the exempt use began, whichever is later. If the application is received after May 20, any approval will be allowed for that tax year as determined by Tennessee law.

Although the application process cannot be completed until all of the documents are received, filing the application form as soon as possible may prevent the organization from losing tax exempt status for part of the eligible exemption period.

III.  IF YOU NEED HELP

Use the following instructions to guide you in completing this form. If you need assistance, please contact your county assessor of property or the State Board of Equalization at the above phone number.

A separate application must be completed for each parcel. Check with your county assessor of property to verify the correct Real or Personal Property Identification Number(s) for the property for which the exemption is being sought. All correspondence with this office should include the Real or Personal Property Identification Number(s)name of organization as it appears on the application submitted, and the name of the county where the subject property is located.

IV.  THE APPLICATION - LINE BY LINE

A.  General Information:

1. Provide the name of the county in which the property is located.
2. Indicate whether the application is for real property or for personal property.
3. Give the Assessor's Real or Personal Property Identification Numbers (if unknown please verify with the county assessor the Real Property Identification or if a Personal Property Account Number has not been assigned.)

IMPORTANT: With limited exceptions, property must be presently used for an exempt purpose to be eligible for an exemption from property taxes.

B.  Completing Lines 1 through 14

Line 1: Provide the complete name and telephone number of the organization applying for exemption.

Line 2: Give the mailing address of the organization applying for exemption.

Line 3: Give the physical location of the property for which the exemption is being sought (important). *No P.O. Box

Line 4: Give the name, daytime phone number, and the mailing address of the person to whom all correspondence from this office should be directed.

Line 5: Choose one or more categories that best describe the uses of the property and the purposes of the organization.

Line 6: Check the category that best describes the type of organization seeking the exemption.

Line 7: Documents A through G are required to determine if the exemption criteria’s are met. Note that the requested documentation may depend on whether the property is real or personal property.

Line 8: State whether the organization has previously submitted an application for exemption for anyproperty, the property address, or the Board’s Exemption Record # if known.

Line 9: Provide the total number of acres of the parcel.

Line 10:

A: Give the date the property was purchased or received as a gift.

B: Give the purchase price.

C: Give the appraised value of the land by the assessor.

D: Give the appraised value of all structures located on the land by the assessor.

E: Give the appraised value of the personal property by the assessor.

F: Give the estimated value of the completed building, if under construction.

Line 11: List all buildings, other structures, etc. located on the property.

Line 12: For real or personal property, written responses are needed to the following:

A: List all current uses and activities of the subject property

B: How often the above listed uses occur.

C: The date each use began

Line 13: For a response of Yes to this question.

A: Give a detailed specific explanation who uses the subject property (use additional sheets if necessary).

B: How frequent the property is used?

C: When each use began?

D: What portion of property used for an activity occurs on the property?

E: Description of the arrangement and a copy of the lease agreement (if applicable).

Line 14: Give detailed specific information on any uses that produce income, the amount of the income, the source of the income, the manner in which the organization uses the income, including income received from goods and services.

Remember you are required by law to provide a copy of the application and the supporting documents to the assessor of property.

C. Certification and Signature

Please read, sign and date the certification statement.

V. WHAT HAPPENS NEXT

The State Board of Equalization will review your application and contact you if further information is required. You will receive written notice whether the application has been approved or denied. If your application is denied, you may request an administrative appeal and ultimately appeal to a court. Appeals must be filed on a form provided by State Board of Equalization within ninety (90) days of the date of the letter notifying the applicant of the disposition of their request. [ Download exemption appeal form ] [ Download exemption appeal fee table ]

If the application is approved, it will not be necessary to reapply each year unless there is a change in the ownership or the use of the property. If such a change should occur, a new application may be necessary and you should contact this office or the assessor of property.