Knowledgebase-Deannexation and the Payment of Property Taxes


Information Product

Title:Deannexation and the Payment of Property Taxes
Summary:MTAS was asked about the process of deannexation (also known as “contraction”) and about the payment of property taxes for those who reside in the area to be deannexed.
Original Author:Hardy, Pat
Co-Author:
Product Create Date:02/23/2005
Last Reviewed on::10/03/2017
Subject:Contraction of city limits; Annexation; Annexation--Laws and regulations; Annexation--Laws and regulations--Tennessee; Annexation--Tennessee; Taxes--Real property; Taxes--Real property--Tennessee
Type:General
Original Document:

Reference Documents:

Text of Document:
February 23, 2005 (updated October 2017)

Dear Mayor,

You have asked about the process of de-annexation (also known as “contraction”). The process for de-annexation can be found in T.C.A. 6-51-201 et seq.

There you will find in T.C.A. 6-51-201(b)1 that any city may contract its boundaries “...upon its own initiative by ordinance when it appears in the best interest of the territory.” This can only occur after proper notice and the holding of a public hearing.

Also, when you finish contraction you will need to notify the county tax assessor (see T.C.A. 6-51-204(b)) and I also believe you need to notify the county election commission and the Office of State Assessed Properties, James K. Polk Building, 505 Deaderick Street, Suite 1700, Nashville, Tennessee 37243.

You have also asked about the payment of property taxes for those who reside in the area to be de-annexed. As I understand it the proper tax notices were not sent to these residents, and because they are about to be de-annexed you want to know if they are required to pay taxes for the past year. The answer is yes, they are required to pay these taxes. I checked with Sid Hemsley, our attorney in Knoxville and he informed me that residents must pay taxes (because they have received services) even though there may have been some mix up with the paperwork related to these taxes.

Please let me know if you need any more information on these issues.

Sincerely,

Patrick Hardy
Municipal Management Consultant