What is a Forced Assessment?

A Forced Assessment is an assessment resulting from an estimation of value. That value may be estimated based upon a field inspection of your property, previously reported information, or it may be estimated based upon the value of personal property for a similar business. Once you have received a Forced Assessment, the only way to adjust your account is by filing an appeal or timely requesting Forced Assessment Relief. If you do not file an appeal or timely request relief, you will forfeit your rights to any adjustments for the given tax year.

According to TCA 67-5-903(b), it is the duty of a taxpayer to list in full on a schedule, all tangible personal property “used, or held for use, in the taxpayer’s business or profession”, including such other related information required by the Assessor. The taxpayer is required to place a correct value on the tangible personal property, sign the schedule and return it to the Assessor on or before March 1 of each year.

TCA 67-5-903(c) states that a taxpayer who “fails, refuses or neglects to complete, sign and file such a schedule “, as provided in subsection (b) shall be deemed to have waived objections to the forced assessment as determined by the Assessor, subject only to the remedies provided in subsection (d). The State Board of Equalization rules and regulations define a forced assessment as “any assessment made on personal property when the taxpayer has failed to file a personal property schedule with the Assessor for the current year, whether or not the assessment is the same as the previous year.” In determining a forced assessment, the Assessor shall consider available evidence indicative of the fair market value of assessable property under TCA 67-5-903 and shall give notice of the assessment to the taxpayer or the taxpayer’s agent by United States mail, at least five calendar days before the County Board of Equalization commences its annual session.

Subsection (d) provides the remedies of a taxpayer against whom a forced assessment is made are as follows:

1. A taxpayer may appeal to the County Board of Equalization pursuant to section 67-5-1407, presenting a completed schedule as otherwise provided in TCA 67-5-903;

2. If the deadline to appeal to the County Board of Equalization has expired, the taxpayer may ask the Assessor to mitigate the forced assessment as long as the failure to file the schedule or timely appeal to the County Board of Equalization was not the result of gross negligence or willful disregard of the law;