IDB/H&ED Report

For further information you may e-mail us at sb.web@cot.tn.gov

Frequently Asked Questions

Who is responsible for filing?

The business using the property under lease from the Board should file the report. If there are both prime and sublessees, it is suggested that the business using the property take the lead in insuring the report is filed.

Is it possible to extend or postpone the filing deadline (October 1)?

No, the statute does not provide for extensions. The penalty for late filing has been reduced to $50. A copy of the report must be filed with the county assessor of property by October 15, and failure to file with the Board or assessor within thirty (30) days after written demand will add $500 to the PILOT otherwise due.

How do you complete the value fields on an IDB annual report?
  1. Estimated value – this is an estimate of value as of 1/1/ tax year
  2. Term Dates – these are the effective dates of the PILOT lease agreement.
  3. PILOT Payments – these are the actual payments made by the owner/lessee for that particular tax year.
  4. Leasehold tax – check with the assessor�s office to find out if the leasehold has a positive taxable value and for help calculating the tax due on this value.
How is estimated value determined?

The law requires merely a good faith estimate of value, not a formal appraisal. For relatively new property, a summary of costs may be a good measure of value. State assessment standards for tangible personal property require depreciated acquisition cost be used as the taxable value of personalty, using depreciable lives provided by statute (e.g., eight years for manufacturing equipment, to a maximum of 80% depreciation). Construction-in-process personalty values are limited to 15% of acquisition cost as long as it is still reported as CIP for federal income tax purposes.

How does the filer determine when the property will return to the assessment rolls?

With the option to renew the lease or to exercise an option to purchase at any time, it may not be possible to precisely predict when the property will return to the assessment rolls. It is suggested you use the lease expiration date as the likeliest time unless you have reason to believe another date is better. E-mail your other questions to Betsy Knotts at Betsy.Knotts@cot.tn.gov.

Can the $50 penalty fee be waived?

We have no authority to waive the late fee required when reports are filed after October 1. We do send a reminder as a courtesy, but it is ultimately the lessee (company) that is responsible for timely filing of this report each year.