HB 766

Upon the filing of a law suit to enforce a tax lien against real or personal property, present law adds certain penalties to the base amount of delinquent taxes. A penalty of 10%, computed on the base amount of delinquent ta xes, not including accrued interest or penalties , is added to delinquent taxes owed to cover the prosecution of the suit. However, (i) such 10% penalty does not apply in Clay, Davidson, Jackson, Macon, Pickett, Scott, Smith, Sumner, and Wilson counties an d (ii) Knox County is authorized to impose a 20% penalty if approved by two-thirds vote of the municipal legislative body. Another 10% is added to cover the cost of the attorney filing the suit, calculated in the same way, with the same counties excluded. A penalty of $7.50 is added to be paid to the sheriff for serving process. The court also adds any court costs to the total. This bill adds a penalty of 5% upon all delinquent taxes , calculated on the base amount owed before accrued interest or penalt ies. This 5% penalty must be devoted to providing tax relief for homeowners who are elderly low-income, disabled, or a disabled veteran or widow of a disabled veteran.