Topics:

• In-lieu-of (INL) Taxes
• Rollback Taxes
• Utility & Transportation Property Taxes

In-Lieu-of (INL) Taxes

Payments In-Lieu-of Tax (PILOT) is administered by the Center City Commission (CCC) for Downtown Memphis, and the Industrial Development Board (IDB) for the remainder of Shelby County.  PILOT is an incentive program to expand/attract businesses to Shelby County and the downtown area, renovating existing buildings and creating new jobs.  Taxes are frozen via contractual agreement.

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Rollback Taxes

Rollback taxes are assessed when a parcel with a Greenbelt classification becomes nonqualified by virtue of a change in use.  The rollback tax is based on the amount of tax saved by the difference in the Greenbelt value and the market value of the property.  The rollback tax includes the preceding three years for agricultural and forest land and the preceding five years for open-space land.

A seller is liable for the rollback taxes if, as a result of the sale, the property no longer qualifies as Greenbelt.  If a buyer converts the property from Greenbelt use after the sale takes place, the buyer is liable for any rollback taxes.  There is a lien against the land for unpaid rollback taxes which can be enforced against the land even though the seller is primarily liable.

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Railroad & Public Utility Tax
(Formerly TPSC - TN Public Service Commission Tax)

Utility and Transportation Property Tax is based on an assessment made by The State Comptroller of the Treasury.  Properties assessed include realty within the state owned by, and all personal property used and/or leased by, railroads, public utility or transportation companies including:

Address questions regarding assessments to:

Tennessee Comptroller of the Treasury
Office of State Assessed Properties
James K. Polk Building
505 Deaderick St.; Ste. 1700
Nashville, TN 37243
Telephone: 615-401-7900
Email: osap.osap@state.tn.us

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