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-.38 - SALE OF PERSONAL PROPERTY

Universal Citation: TN Comp Rules and Regs 1320-02-01-.38

Current through September 24, 2024

(1) Any personal property (except bonds, notes, checks, and other securities) acquired by the state in payment of or as security for debts arising under any provisions of this chapter or the provisions of any prior law or the corresponding provisions of any subsequent law may be sold by the Commissioner or his delegate. Bonds of the State of Tennessee or of the United States shall not be sold by the Commissioner or his delegate but shall be transferred to the Treasurer of the state for redemption. All other bonds, notes, checks, and any other securities shall be disposed of in such manner as the Commissioner may direct.

(2) The time, place, manner, and terms of sale of personal property acquired by the state as prescribed hereinabove shall be as follows:

(a) The personal property may be sold at any time after it has been acquired by the state. A public notice of sale shall be posted at the county courthouse nearest the place of sale and in at least two other public places. The notice shall specify the property to be sold and the time, place, manner and conditions of sale. In addition, the Commissioner or his delegate may use such other methods of advertising as he believes will result in obtaining the highest price for the property. The place of sale shall, except as provided hereinafter, be within the county where the property was originally acquired by the state. However, if the Commissioner or his delegate believes that a substantially higher price may be obtained, the sale may be held outside such county and at any other place within the state.

(b) The officer conducting the sale may reject any and all bids and withdraw the property from the sale if, in his judgment, the best interest of the state will be served thereby. Whenever it appears to the officer conducting the sale that an adjournment of the sale will best serve the interest of the state, he may order and announce the sale adjourned from time to time. If the sale is adjourned for more than 30 days in the aggregate, public notice of the sale shall again by given.

(c) In the cue of default in payment of the bid price any amount deposited with the state will be retained as liquidated damages, but the amount thereof shall not exceed $200 unless the actual loss sustained is greater.

(3) The Commissioner or his delegate may, before giving notice of sale, solicit offers from prospective bidders and enter into agreements with such persons that they will bid at least a specified amount in case the property is offered for sale. In such case, the Commissioner or his delegates may also require such persons to make deposits to secure the performance of their agreements. Any such deposit, but not more than $200 thereof unless the actual loss sustained is greater, shall be retained as liquidated damages in case such person fails to bid the specified amount and the property is not sold for as much as the amount specified in such agreement.

(4) The property shall be offered for sale upon whichever of the following terms is fixed by the Commissioner or his delegates in the public notice of sale.

(a) Payment in full upon acceptance of the highest bid, without regard to the amount of such bid, or

(b) If the aggregate price of all property purchased by a successful bidder at the sale is more than $200 an initial payment of $200 or 20% of the purchase price, whichever is the greater, and payment of the balance (including all costs incurred for the protection or preservation of the property subsequent to the sale and prior to final payment) within a specified period, not to exceed one month from the date of sale.

(5) The property may be sold at either:

(a) public auction, at which open competitive bids shall be received, or

(b) public sale under sealed bids.

(6) The following rules, in addition to the other rules provided herein shall be applicable to public sales under sealed bids.

(a) Bids shall be solicited by the Commissioner or his delegates through a public notice of sale.

(b) A bid shall be submitted on a form which will be furnished by the Commissioner or his delegates upon request. The form shall be fully completed in accordance with the instructions appearing thereon.

(c) If the total bid is $200 or less, the full amount of the bid shall be submitted therewith. If the total bid is more than $200, 20% of such bid or $200 whichever is greater, shall be submitted therewith. Such remittance shall be by a certified, cashier's or treasurer's check drawn on any bank or trust company incorporated under the laws of the United States or under the laws of the State of Tennessee or by a United States Postal Service, bank, express, or telegraph money order.

(d) Each bid shall be submitted in a securely sealed envelope. The bidder shall indicate in the upper left-hand corner of the envelope his name and address and the time and place of sale as announced in the public notice of sale. A bid will not be considered unless it is received by the officer conducting the sale prior to the opening of the bids. The bids will be opened at the time and place stated in the notice of sale, or at the time fixed thereafter in the announcement of the adjournment of the sale.

(e) The officer conducting the sale shall have the right to waive any technical defects in a bid. After the opening, examination, and consideration of all bids, the officer conducting the sale shall announce the amount of the highest bid or bids and the name of the successful bidder or bidders, unless in the opinion of the officer a higher price can be obtained for the property than has been bid. In the event the highest bids are equal in amount, the officer conducting the sale shall determine the successful bidder by drawing lots unless in his opinion a higher price can be obtained for the property that has been bid. Any remittance submitted in connection with an unsuccessful bid shall be returned to the bidder at the conclusion of the sale where feasible and in no event later than 30 days thereafter.

(f) A bid may be withdrawn on written or telegraphic request received from the bidder at any time prior to the time fixed for opening the bids. A technical defect in a bid confers no right on the bidder for the withdrawal of his bid after it has been opened.

(7) All payments for property sold pursuant to this section shall be made by cash for by a certified, cashier's, or treasurer's check drawn on any bank or trust company incorporated under the laws of the United States or under the laws of the State of Tennessee, or by a United States postal service, bank, express, or telegraph money order. If payment in full is required upon acceptance of the highest bid, the payment shall be made at such time. If payment in full is not made at such time,when required, the officer conducting the sale may forewith proceed again to sell the property in the manner provided in paragraph (e) hereof. If deferred payment is permitted, the initial payment shall be made on or before the date fixed for payment thereof. Any remittance submitted with a successful sealed bid shall be applied toward the purchase price.

(8) The risk of loss shall be on the purchaser of the property upon the acceptance of his bid and notification thereof given the purchaser by the Commissioner or his delegate. Possession of any property shall not be delivered to the purchaser until the purchase price has been paid in full. If payment or part of the purchase price for the property is deferred, the Commissioner or his delegate will retain possession of such property as security for the payment of the balance of the purchase price; and, as agent for the purchaser, he will cause the property to be cared for until the purchase price has been paid in full or the sale is declared null and void for failure to make full payment of the purchase price. In such latter event, all charges and expenses incurred in caring for the property after acceptance of the bill shall be borne by the purchaser.

(9) The officer conducting the sale shall issue a certificate of sale to the purchaser upon payment in full of the purchase price. Such certificate shall transfer to the purchaser all right, title, and interest of the state in and to the property sold.

(10) In the case of the resale of any such property, as prescribed herein, the net proceeds of such resale shall be paid over by the Commissioner and distributed in the same manner as the subject tax and he shall account for the proceeds and all expenses connected therewith.

(11) Notwithstanding the other paragraphs of this rule, the Commissioner or his delegate may, when he deems it advisable and in the best interest of the state to do so, take charge of and assume responsibility for any property to which this section is applicable. In such case, the Commissioner or his delegate shall immediately notify in writing the person to whom such property or rights to property belongs and specify therein the property involved, the reason for the action and his intentions with respect thereto.

Authority: T.C.A. §§ 67-1-1439 and 67-1-1435.

Disclaimer: These regulations may not be the most recent version. Tennessee may have more current or accurate information. We make no warranties or guarantees about the accuracy, completeness, or adequacy of the information contained on this site or the information linked to on the state site. Please check official sources.
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