(1) In the
hearing of an appeal before an administrative judge concerning the
classification and/or assessment of a property, the party seeking to change the
current classification and/or assessment shall have the burden of
proof.
(2) In the hearing of an
appeal from an initial determination on an application for property tax
exemption, the party seeking to change the initial determination shall have the
burden of proof. In a show cause hearing for revocation of an exemption, the
person claiming exemption shall bear the burden of showing by a preponderance
of evidence why the exemption should not be revoked. Upon request of a party or
order of the administrative judge, the Board designee who made the initial
determination under appeal will attend the hearing. The designee may testify
and, at the discretion of the administrative judge, examine witnesses or
otherwise participate in the hearing. The designee may be permitted to
participate by telephone or other electronic means when hearings are conducted
at locations other than Nashville.
(3) A record of the hearing of any appeal
before an administrative judge will be made by digital recording. Any party
may, at its own expense, procure a court reporter to record the oral
proceedings or a written transcript of the digital recording.
(4) Parties are encouraged where practicable
to achieve any necessary discovery informally, in order to avoid undue expense
and delay in the resolution of the matter at hand. When such attempts have
failed, or where the complexity of the case is such that informal discovery is
not practicable, discovery shall be sought and effectuated in accordance with
the Tennessee Rules of Civil Procedure. An example of an informal discovery
request follows:
REQUEST FOR
INFORMATION
Date:
The periodic reappraisal of this county and all counties in
Tennessee is a mass consideration of all parcels in their respective
jurisdiction. Data needed and assembled to develop a mass appraisal of the
entire county is different from the data necessary for individual property
valuation pursuits. Appeals before the State Board of Equalization are filed on
an individual parcel basis. In answer to such appeals, valuations are conducted
on an individual parcel basis, and testimony is expected to be presented on the
same basis.
This information being requested is data used in the Appraisal
Industry with methods and theories taught from the textbooks and classrooms of
the Appraisal Industry on how to arrive at an estimated value based on the
Three Approaches to Value. Any request outside of these parameters is not
required.
Learning as much as possible about the subject of each appeal
is essential. As a result, the assessor's office requests very specific data in
an effort to gain a clearer understanding of the subject property. Our request
is not intended to be burdensome; however, some information is essential to
establish a credible appeal. Any information received in response to the
Standard Request for Information shall be held confidential pursuant to T.C.A.
§
67-5-303(d)(2).
Therefore, for the subject property(s) under appeal, we request the following
from the subject property(s):
A) If
the property under appeal has been under contract to sell or sold within 24
months (before or after) the effective appeal date, please submit a copy of the
sales contract. If, during the same period, the property was listed for sale,
please submit a copy of the listing sheet together with asking price(s) and any
offers.
B) Please submit a copy of
all leases for the property under appeal in effect on the effective appeal date
(January 1 or Prorate Date). Alternatively, rent roll (tenant and vacant space
roster) and complete lease summaries are acceptable. Lease summaries must:
identify the individual tenant spaces whether occupied or vacant and list the
rentable footage for each space; specify the beginning and ending date of each
lease primary term together with any renewals; specify base rent together with
rent escalations or reductions and the timing thereof; specify any additional
rentals per tenant space such as expense stops and/or expense pass-throughs,
percentage rents, parking rents and any other rentals specified by each
lease.
C) Please submit property
management's annualized income and expense statements for each of the three
years preceding the year under appeal. (For example, if the value under appeal
is for Year 2017, the income and expense statements for Years 2014, 2015 and
2016 are required.) Reconstructed operating statements of historical
performance in place of management reports are not acceptable. For lodging
properties, we also need average daily rate and occupancy rate for each
operating year. For retail properties and restaurants in particular where rent
is a function of gross sales, we will need a history of gross sales for the
three years immediately preceding the tax year under appeal. (For convenience
markets, gross sales will need to be segregated between inside sales and pump
sales.)
D) Any additional
information deemed relevant by the taxpayer or representative is welcomed,
i.e., current appraisal, rent rolls for prior relevant years, permanent
property deficiencies not obvious to the assessment office that would be
market-recognizable and value-impacting.
E) If the property under appeal is vacant
land or an owner-occupied improved property, submission of relevant comparable
transfers is requested.
F) Please
provide the basis together with supporting data for your contention that the
property has been overvalued by the reappraisal staff.
G) Each property is unique. Should, during
the course of our investigation, it be found that additional information
relative to the subject of the appeal would be helpful toward a resolution of
the appeal, we will make that request.
Please provide the requested information
by:
Notes
Tenn. Comp. R. & Regs. 0600-01-.11
Original rule
certified June 7, 1974. Repeal filed and effective July 1, 1984. New rule filed
June 30, 2000; effective September 12, 2000. Amendment filed February 1, 2011;
to have been effective May 2, 2011. On April 29, 2011, the Government
Operations Committee stayed the rule for 15 days; new effective date May 17,
2011. Amendments filed February 21, 2018; effective May 22, 2018. Amendments
filed May 12, 2020; effective 8/10/2020.
Authority: T.C.A. §§
4-5-311(c),
67-1-305, and
67-5-1501(d).
