Rules & Regulations of the State of Tennessee
Title 1320 - Revenue
Subtitle 1320-02 - Collections Division
Chapter 1320-02-01 - Tax Enforcement Procedures Act
Section 1320-02-01-.25 - APPLICATION OF PROCEEDS

Universal Citation: TN Comp Rules and Regs 1320-02-01-.25

Current through September 24, 2024

(1) Any money realized by proceedings under the Tax Enforcement Procedures Act whether by seizure or by surrender (except pursuant to subsection (b)(2) of T.C.A. § 67-1-1412 or by sale of seized property, or by sale of property redeemed for the state (if the interest of the state in such property was a lien arising under the provisions of this title) shall be applied as hereinafter indicated.

(a) First, against the expenses of the proceedings.

(b) Taxes such as ad valorem taxes on the property seized shall only be paid after the expenses in (a) if the state does not have a senior lien for taxes pursuant to T.C.A. § 67-1-1403.

(c) The amount, if any, remaining after complying with the provisions of subparagraphs (a) and (b), as hereinabove stated, shall then be applied against the liability in respect of which the levy was made or the sale was conducted.

(2) Any surplus proceeds remaining after the application of paragraph (l), as hereinabove stated, shall, upon application and satisfactory proof in support thereof, be credited or refunded by the Commissioner or his delegate to the person or persons legally entitled thereto. The delinquent taxpayer is the person entitled to the surplus proceeds unless another person establishes a superior claim thereto. If there are multiple claims to surplus proceeds, the Commissioner may file an interpleader action as to any surplus funds in the Davidson County Chancery Court.

Authority: T.C.A. §§ 67-1-1439 and 67-1426.

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