With County Assessors in Davidson County and other Tennessee counties currently mailing reappraisal notices for commercial property, it is important for property owners to keep a keen eye on the value assigned to their business real estate.  Business owners that feel they are paying an inflated amount of real property tax have the right to appeal the valuation.

In Tennessee, the real property tax system is coordinated by county officials, with oversight by the State Board of Equalization.  Local county assessors appraise the value of all real property in the county every four to six years.  Once the value is determined, it remains constant until the next reappraisal year unless there are substantial changes to the property in the interim.  Davidson County is in a reappraisal year for 2009.

Business owners that believe that the appraised value of their property is overstated may wish to challenge that valuation through their county board of equalization.  The appeal is relatively simple.  In some counties, an informal opportunity to contest the new value is available, but for property owners in the majority of Tennessee counties, the only way to seek property tax relief is to file an appeal with the County Board.  The general timeline and process regarding the valuation, sending of the tax bill to the taxpayer, and an appeal of the valuation, is as follows:

  • Notices of assessment or classification change are sent to taxpayers on March 1 of each year.
  • Taxpayers disputing a classification or valuation may appeal to the County Board of Equalization, which convenes beginning on June 1. 
  • Taxpayers may appeal County Board decisions to the Assessment Appeals Commission of State Board of Equalization for a hearing by an administrative judge or hearing examiner within 45 days of the date notice of the county board action was sent, or before August 1 of the tax year, whichever is later. 
  • Appeals from decisions of administrative judges or hearing examiners to the Assessment Appeals Commission may be filed within 30 days of the date the initial decision was sent.  If no appeal is filed, the State Board or the Assessment Appeals Commission can adopt the hearing examiner's recommendation as its final decision.
  • All matters passed on by the State Board or Assessment Appeals Commission are subject to judicial review. 

County Assessors in Davidson County and other counties are mailing reappraisal notices in most jurisdictions which will indicate the appraised fair market value of commercial properties for 2009.  Every commercial property should be reviewed to determine if it makes sense to contest the value.

The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.