Tennessee Offers Property Tax Relief for Disaster-Affected Businesses and Homeowners

Tennessee Senate Bill-007, which became law on February 25, 2025, mandates the comptroller to issue payments to property owners whose real or personal property was destroyed or damaged by a FEMA-certified disaster occurring between September 26, 2024, and September 30, 2024, if specific conditions are met. Additionally, the bill requires the chief executive officer of a governmental entity to approve the deployment of the entity's personnel and equipment outside its boundaries to assist another governmental entity requesting emergency aid during a disaster. The bill amends TCA Title 58, Chapter 8, and Title 67, Chapter 5.

Under this bill, for any disaster certified by FEMA that occurred between September 26, 2024, and September 30, 2024 (referred to as a "qualified disaster"), and subject to the approval and appropriation by the General Assembly, the comptroller of the treasury is required to disburse payments directly to the owners of real or personal property located in counties included in the FEMA declaration. This applies to property subject to taxation in Tennessee, excluding intangible personal property or public utility property. To qualify, the property must have been destroyed or damaged by the qualified disaster, as assessed by the local property assessor by January 28, 2025, and the owner must have held ownership of the affected property at the time of the disaster. The payment will be equal to the total tax levied on the property for the 2024 tax year, plus an additional 30 percent.

Property owners eligible for these payments must submit all required information and properly completed documentation to the Comptroller of the Treasury by June 30, 2025, to receive payment. The comptroller will determine the method for submitting the necessary documents. Failure to provide the required information or correct documentation will result in forfeiture of eligibility for the payment.