Bill Passes to Permit Assessors to Recognize Effects of Foreclosures
Re: SB 2196 / HB 2175 – A Bill to Recognize Foreclosure Effects upon Assessment Values
Tennessee Taxpayers Association prepared and presented this bill to the Legislature in order to permit Tennessee assessors to recognize that values in neighborhoods decrease from the effect of foreclosures. The Shelby County Assessor of Property, Cheyenne Johnson, supported the concept of this bill before it was filed. We do not believe that opponents in the Legislature would have initially accepted it without her assistance.
Prior to the passage of this new law, statutes, rules, and precedents prevented sales made at foreclosure from being used to establish values for other properties.
This new law will make it possible for the assessors and the boards of equalization to treat taxpayers fairly in appraising their homes at what they are really worth; not some fictitious price higher than the true market value. Without this new law, it would have been very difficult (perhaps impossible) for Tennessee’s taxpayers to receive true justice reflected by real market values.
Senator Jim Kyle (D) of Shelby County and Speaker Lois DeBerry (D) of Shelby County were the legislative sponsors of the bill and we are very grateful for their hard work to effect its passage. Many taxpayers will also be grateful to these sponsors once they protest their assessment values that have been affected by numerous foreclosures.
The bill started as a general bill with local application to only Shelby County because Shelby County had been hit particularly hard by many foreclosures. Taxes are also much higher in Shelby County than in the other 94 counties.
However, lawmakers from other counties recognized the value that this bill would have when their counties are reappraised for assessments and taxes. Therefore, an amendment was added to make the bill have state-wide application.
This bill should help many struggling taxpayers to possibly avoid foreclosure.
Thanks again to the legislative sponsors, the Shelby County Assessor, and the Tennessee General Assembly for this new law.
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