House Bill 162, also known as Senate Bill 198, amends Tennessee Code Annotated to allow counties and municipalities that levy property taxes to issue refunds to taxpayers through annual installments applied as credits against future property taxes. This provision is contingent upon a written settlement agreement between the taxpayer and the local government, which must include a waiver of penalties and interest on the refund. The agreement must be signed by both parties and filed with the comptroller of the treasury within 30 days. Additionally, the total refund must exceed $500,000, and the refund must be fully paid within ten years of the agreement's signing.

The bill also introduces a new subdivision to Section 67-5-1512(d), allowing taxpayers to waive penalties and interest on refunds as part of the settlement agreement. This waiver will halt the accrual of penalties and interest, and any previously accrued interest will no longer be owed. Both the new provisions regarding property tax refunds and the waiver of penalties and interest are set to be repealed on June 30, 2041. The act will take effect upon becoming law, emphasizing the public welfare.

Statutes affected:
Introduced: 67-1-202(a)(7), 67-1-202
Amended with SA0742 -- 03/26/2026: 67-1-202(a)(7), 67-1-202, 67-5-1809, 67-5-1512(d), 67-5-1512