UPDATED december 2019
Tax Relief for Damaged Property
Taxpayers should be aware of relief provided for damaged property under Tennessee law. Tennessee assessors value property in its condition as of January 1st, regardless of its condition during the rest of the year.
An exception to this general rule exists if, before September 1st, an improvement is demolished, destroyed, or substantially damaged. If it is not restored and nothing else is constructed before September 1st, then the assessor must value the property in its damaged condition from the date of damage until December 31st. The value is then prorated between the January 1st value and the date of damage value.
It is important to note that if damaged improvements are repaired or rebuilt before September 1st, then there is no relief. The January 1st value will remain on the property all year, though the property may not have been in service for several months.
Evans Petree PC
American Property Tax Counsel (APTC)