Tennessee House Bill HB2312

Tennessee 2023-2024 Regular Session

• Introduced: 1/29/24
• Refer: 2/1/24
• Refer: 3/6/24
• Refer: 3/12/24
• Engrossed: 3/26/24
• Enrolled: 4/16/24
• Passed: 5/3/24
• Chaptered: 5/13/24

Caption

AN ACT to amend Tennessee Code Annotated, Section 67-5-2001, relative to collection of delinquent taxes.

Impact

The bill represents a significant shift in how local governments manage delinquent property tax collections. By allowing partial payments, it provides a more flexible approach for taxpayers who might be struggling to meet their obligations. This could potentially lead to increased compliance, as individuals may be more inclined to engage with their tax liabilities if offered a more manageable payment structure. Additionally, it emphasizes the necessity of establishing technological and administrative frameworks to support these changes, ensuring that local governments are equipped to handle the revised processes effectively.

Summary

House Bill 2312 is an act that modifies Tennessee's tax collection laws, specifically aiming to facilitate the acceptance of partial payments for delinquent property taxes by county trustees and municipal tax collectors. This legislation empowers these tax authorities to accept various forms of partial payment, including electronic transfers and direct payments from taxpayers. The bill requires that, before such payments are accepted, a detailed plan must be filed with the comptroller, ensuring that the payment process is properly managed and accounted for within the local tax systems.

Sentiment

The general sentiment surrounding HB 2312 appears to be positive among supporters who advocate for taxpayer assistance and modernizing tax collection practices. Commissioners and local government representatives have expressed approval, recognizing the advantages of offering partial payment options, which can mitigate the risk of property forfeiture. However, there may also be concerns from some factions about how changes in tax collection could impact the timely revenue streams that local governments rely on, questioning whether these systems can sustain such flexibilities without impairing financial stability.

Contention

Notable points of contention include the concerns that could arise regarding the administration of partial payments and their implications on existing tax lien procedures, which remain unaffected by this new system. Some legislators expressed apprehension about potential complications in maintaining accurate records with added payment methods. Additionally, there are worries about ensuring that the partial payment options do not undermine the accountability and urgency associated with property tax obligations, as delayed or insufficient payments could still risk tax liens and property sales.