Tennessee § 67-5-1804 - Discount for early payment.

§ 67-5-1804. Discount for early payment.

The governing body of any municipality or county may provide by appropriate ordinance or resolution enacted or adopted in connection with the levy of ad valorem real property taxes for any year for a discount of two percent (2%) of the ad valorem real property tax currently due, if such taxes are paid within thirty (30) days of the date on which such taxes are payable under § 67-1-701(a) and/or a discount of one percent (1%), if paid after more than thirty (30) but less than sixty (60) days after the date such taxes are payable under § 67-1-701(a); provided, that such discount shall apply only to the taxes paid by the taxpayer during the discount period for any taxpayer making a partial payment as authorized by law or for any taxpayer receiving tax relief under part 7 of this chapter. Notwithstanding this section, in any county included in chapter 550, §§ 8 — 21 of the Public Acts of 1989, or in any county that by private act adopts similar provisions to those contained in such provisions of that act, if a county or municipality in such county has adopted a discount for early payment as provided in this section, pursuant to § 67-1-701, and the trustee accepts property taxes prior to the first Monday in October, the discount applicable to payments during October shall be applicable to tax payments made prior to the first Monday in October. As an alternative to the discount provided for in subsection (a), in accordance with § 67-1-702, giving the county trustee the authority to collect taxes at any time after July 10, prior to the first Monday in October established by § 67-1-701, the governing body of any municipality or county may provide by appropriate ordinance or resolution for a discount of three percent (3%) of the ad valorem real property tax to become due the first Monday in October, if such taxes are paid by the end of July; two percent (2%), if paid by the end of August; and one percent (1%), if paid by the end of September. The trustee may accept such early payments, in the trustee's discretion, based upon the trustee's capacity to effectively account for such payments. Nothing herein shall prevent any governing body from rescinding the adoption of such discounts at any time. Nothing in this section shall be deemed to require early payment by any mortgagee, mortgage servicer, or escrow account holder; nor shall any mortgagee, mortgage servicer, or escrow account holder be required to notify any mortgagor or other party with respect to the availability of any such discounts. Acts 1907, ch. 602, § 41; 1909, ch. 542, § 1; Shan., § 865; mod. Code 1932, § 1545; Acts 1961, ch. 312, § 1; modified; 1982, ch. 819, § 1; T.C.A. (orig. ed.), § 67-1101(b); Acts 1987, ch. 346, § 15; 1988, ch. 795, § 21; 1989, ch. 291, § 6; 1989, ch. 550, §§ 6, 24; 1992, ch. 889, §§ 1-3; 1995, ch. 126, § 1. Compiler's Notes. Acts 1995, ch. 126, § 2 provided that the amendment by that act shall apply to tax year 1995. Cross-References. Inapplicability of section to real property tax deferral, § 7-64-204 . Personal property sales, withholding proceeds for personal property tax satisfaction; liability for failure to withhold, § 67-5-2003 .