New Remedy for Excessive Forced Assessments

Kelsie Jones, Executive Secretary for the State Board of Equalization, recently announced that there is new relief for taxpayers with forced assessments of business tangible personal property. The law took effect on May 7, 2009. Taxpayers with forced assessments exceeding a threshold of 25% or more higher than the standard value otherwise applicable, may have their assessment reduced to the threshold amount, upon request to the Assessor.

The taxpayer will be required to complete a tangible personal property Forced Assessment Mitigation schedule listing cost of equipment used in the business as of January 1 of the year of the forced assessment. The Assessor may request documentation to support information provided in your personal property schedule. Standard depreciation factors will be used to arrive at the assessed value of your property. If the taxpayer is eligible, the Assessor will certify a corrected assessment to the county trustee and/or city tax collector. The tax due will be adjusted based on the relief amount.

The deadline for requesting this relief is March 1 of the second year following the year of the forced assessment. The remedy is not available if the Assessor determines the original failure to report or failure to appeal the forced assessment to the Rutherford County Board of Equalization was the result of gross negligence or willful disregard of the law. Gross negligence is presumed if notice of the original forced assessment was sent by certified mail to the taxpayer's last known address.

If the Assessor determines the taxpayer was not in business as of the assessment date and did not own or lease tangible personal property used or held in a business as of that date, the assessment may be adjusted to zero.

Personal Property Request Requirements & Forms