Tenn. Comp. R. & Regs. 0600-14-.03

Current through December 26, 2024
Section 0600-14-.03 - ASSESSABLE LEASEHOLD INTERESTS

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.

Tenn. Comp. R. & Regs. 0600-14-.03

Original rules filed April 1, 2020; effective 6/30/2020.

Authority: T.C.A. §§ 67-1-305, 67-5-502(d), and 67-5-605.