1. (1) New real property reporting: New real property must be deducted from the current year pro forma tax base. Below is a listing of types of new real property that should be deducted:

   1. (a) Dwellings
   2. (b) Dwellings (pro-rated)
   3. (c) OBY’s
   4. (d) OBY’s (pro-rated)
   5. (e) Commercial
   6. (f) Commercial (pro-rated)
   7. (g) Additions
   8. (h) Additions (pro-rated)

2. (2) New personal property reporting:

   1. (a) New tangible personal property must be deducted from the current year pro forma tax base. New tangible personal property is determined by adding together year one of each group on the personal property schedule, with the exception of the three non-depreciable groups (Group 7-scrap property; Group 8-raw materials, supplies; and Group 10-CIP).
   2. (b) Tangible personal property which has been removed from the current year actual tax base (due to exemptions or physical removal by owners) since the preceding year should be deducted from the preceding year property tax levy.

3. (3) New land reporting:

   1. (a) Properties that qualify for greenbelt classification for the first time in the reappraisal year, or that cease to qualify for greenbelt in the reappraisal year may necessitate an equalized tax rate adjustment (adjust the preceding year tax levy for new greenbelt; adjust current year pro forma tax base for properties being removed).
   2. (b) EXAMPLES OF DETERMINING NEW LAND: EXAMPLE This example treats 60 acres as divided, but in fact all 100 acres from the preceding year have been divided. If the 100-acre parcel from the preceding year has become a 40-acre parcel and 60 one-acre parcels in the current year, all the new parcels are ‘child’ parcels (including the 40-acre remnant), even if one of them still bears the same parcel identification number as the former 100-acre parcel. To calculate the ‘new land’ for tax rate purposes, take the hypothetical ‘reappraisal’ assessed value of the 100 acres as if it had remained intact, minus the preceding year’s assessed value of the 100 acres. That difference is attributable to the reappraisal, and the balance of the new assessed value for the 40 acre and the 60 one-acre parcels, will be the ‘new land.’

Authority: T.C.A. §§ 4-3-5103, 67-1-305, and 67-5-1601. Administrative History: Original rules filed April 1, 2020; effective June 30, 2020.