Charitable & Related Exemptions

Exemption Processing Fees

Persons filing applications for property tax exemptions at the State Board of Equalization must now pay a non-refundablefee to defray part of the cost of processing applications at the state level. The fee is proportionate to the total appraised value [land and structure(s) as determined by the County Assessor of Property] of the property being considered for exemption as follows:

 

Property Value	Fee
Less than $100,000	$30
$100,000 - less than $250,000	$42
$250,000 - less than $400,000	$60
$400,000 or more	$120

 

1. If the property under consideration makes up more than one parcel on the assessor’s records, submit a separate application for each parcel (but you may total the value represented by contiguous parcels for the purposes of the fee); for non-contiguous parcels an application processing fee is required.
2. Be sure to include the estimated value upon completion for buildings under construction or to be constructed in the calculation of the fee submitted, if you intend to seek exemption on these buildings.
3. If the property does not have an assessed value set by the local assessor, use the insurance replacement value to determine the applicable application-processing fee.

 

Remit a check or money order payable to the Comptroller of the Treasury when you file your application.

 

An additional fee will be due from persons appealing the initial determination on an application.

 

Authority: Tenn. Code Ann. §67-5-212(b)(2); SBOE Rule 0600-08-.01

 

Required Supporting Documents for Exemption Applications

The following supporting documents are required to be submitted with the application(s) (photocopies are acceptable):

1. If the application is for real estate, the recorded (warranty or quitclaim) deed which evidences ownership by the organization.
   
2. If the application is for personal property, a list (which includes the value) or assessors schedule of the items for which exemption is sought.
   
3. If incorporated; the corporate charter, bylaws, certificate of authority (if incorporated outside of Tennessee).
   
4. If unincorporated, documents stating the purpose and governance of the organization, (e.g. articles of faith, bylaws, mission statement, etc.).
   
5. Copy of most recent IRS Form 990, if required to file.
   
6. If not required to file Form 990, submit organizations financial records, e.g. income and expense statement for last fiscal year.
   
7. If the application is for real estate, a photograph is required for each property.

   *Note: If multiple applications are submitted in the same county, submit only one copy of C, D, E, and F below at the time of filing.

 

Application Instructions For Religious, Charitable, Educational or Scientific Use Property Tax Exemptions

 

I.  WHY YOU MUST APPLY

The following three requirements must be met before any property can be granted exempt status:

1. property must be owned by a religious, charitable, scientific or nonprofit educational institution.
   
2. property must be actively used purely and exclusively for an exempt purpose.
   
3. an application for exemption must be submitted to the State Board of Equalization including the appropriate fee and supporting documentation.

 

As a representative of your organization, you are about to complete the third requirement. Please provide the necessary information so that our office can determine if your organization and the use it makes of the property meet other requirements for exemption.

CLICK HERE TO DOWNLOAD AN APPLICATION FOR EXEMPTION. Send the original application form, supporting documentation and the appropriate fee to State Board of Equalization, 9th Floor, W.R. Snodgrass TN Tower, 312 Rosa L. Parks Avenue, Nashville, TN 37243-1102. A copy of the application and the supporting documents must be sent to the assessor of the county in which the property is located. Be sure to keep a copy of your application for your files.

 

II.   DEADLINE DATES/EFFECTIVE DATES

The date the application is received by this office and the date the use began determine the effective date of an approved exemption. The effective date for an approved application that was received by May 20 of a particular year will be January 1 of that year or the date the exempt use began, whichever is later. If the application is received after May 20, any approval will be allowed for that tax year as determined by Tennessee law.

 

Although the application process cannot be completed until all of the documents are received, filing the application form as soon as possible may prevent the organization from losing tax-exempt status for part of the eligible exemption period.

 

III.  IF YOU NEED HELP

Use the following instructions to guide you in completing this form. If you need assistance, please contact your county assessor of property or the State Board of Equalization at the above phone number.

 

A separate application must be completed for each parcel. Check with your county assessor of property to verify the correct Real or Personal Property Identification Number(s) for the property for which the exemption is being sought. All correspondence with this office should include the following: Real or Personal Property Identification Number(s); name of organization as it appears on the application submitted; and the name of the county where the subject property is located.

 

IV.  THE APPLICATION - LINE BY LINE

A.  General Information:

1. Provide the name of the county in which the property is located.
2. Indicate whether the application is for real property or for personal property.
3. Give the Assessor's Real or Personal Property Identification Numbers (if unknown, please verify with the county assessor.)

 

IMPORTANT: With limited exceptions, property must be presently used for an exempt purpose to be eligible for an exemption from property taxes.

 

B.  Completing Lines 1 through 14

Line 1: Provide the complete name and telephone number of the organization applying for exemption.

 

Line 2: Give the mailing address of the organization applying for exemption.

 

Line 3: Give the physical location of the property for which the exemption is being sought (important). *No P.O. Box

 

Line 4: Give the name, daytime phone number, and the mailing address of the person to whom all correspondence from this office should be directed.

 

Line 5: Choose one or more categories that best describe the uses of the property and the purposes of the organization.

 

Line 6: Check the category that best describes the type of organization seeking the exemption.

 

Line 7: Documents A through G are required to determine if the exemption criteria are met. Note that the requested documentation may depend on whether the property is real or personal property.

 

Line 8: State whether the organization has previously submitted an application for exemption for any property; the property

address; or the Board’s Exemption Record #, if known.

 

Line 9: Provide the total number of acres of the parcel.

 

Line 10:

A: Give the date the property was purchased or received as a gift.

B: Give the purchase price.

C: Give the appraised value of the land by the assessor.

D: Give the appraised value of all structures located on the land by the assessor.

E: Give the appraised value of the personal property by the assessor.

F: Give the estimated value of the completed building, if under construction.

*If no personal property schedule has been filed, you must contact the assessor’s office. Submit a list of the personal property and include the value of the personal property for which exemption is sought.

 

Line 11: List all buildings, other structures, etc. located on the property.

 

Line 12: For real or personal property, written responses are needed to the following:

A: List all current uses and activities of the subject property

B: How often the above listed uses occur

C: The date each use began

 

Line 13: For a response of "Yes" to this question:

A: Give a detailed specific explanation regarding who uses the subject property (use additional sheets if necessary).

B: How frequent the property is used

C: When each use began

D: The portion of property used for each activity

E: Description of the arrangement and a copy of the lease agreement (if applicable).

 

Line 14: Give detailed specific information on any uses that produce income, the amount of the income, the source of the income,

the manner in which the organization uses the income, including income received from goods and services.

 

Remember you are required by law to provide a copy of the application and the supporting documents to the assessor of property.

 

C. Certification and Signature

Please read, sign and date the certification statement.

 

V. WHAT HAPPENS NEXT

The State Board of Equalization will review your application and contact you if further information is required. You will receive written notice whether the application has been approved or denied. If your application is denied, you may request an administrative appeal and ultimately appeal to a court. Appeals must be filed on a form provided by State Board of Equalization within ninety (90) days of the date of the letter notifying the applicant of the disposition of their request.

 

	Download exemption appeal form
	Download exemption appeal fee table
	What to do About Payment of Taxes While an Exemption is Pending

 

If the application is approved, it will not be necessary to reapply each year unless there is a change in the ownership or the use of the property. If such a change should occur, a new application may be necessary and you should contact this office or the assessor of property.

 

Important: While the processing of the application is still pending, you are responsible for providing prompt written notice of any change in the information or documentation submitted during this period (this includes change in ownership, use, name, occupancy, etc.) related to the submitted application.

 

For further information, you may e-mail us at sb.web@cot.tn.gov