In order for a Leasehold Interest to create a Taxable Interest:
- (1) The fee interest in the real property must be exempt from property taxes;
- (2) The property must be used primarily for the private benefit of the lessee with any public purpose being only incidentally served;
- (3) The lease must convey a Real Property Interest in the subject property to the lessee;
- (4) The property must not otherwise be the subject of a lawful agreement between a lessee and a local government, or instrumentality thereof, for payments in lieu of taxes entered into or amended on or after April 30, 2019; and
- (5) The Leasehold Interest must have a taxable value.
Authority: T.C.A. §§ 67-1-305, 67-5-502(d), and 67-5-605. Administrative History: Original rules filed April 1, 2020; effective June 30, 2020.