Section 0600-05-.09 - MISCELLANEOUS(1) In determining whether property should be assessed as real or personal, the following factors should be considered: (a) The apparent movability or permanency of the item in its location or attachment to the land or structure. The cost of moving the item and the amount of damage that will be incurred to the item, the land, or the improvement if the item is removed should be weighed against the value of the item of property that is being considered. If the value of the item exceeds the moving cost and the amount of damage incurred, it is more likely to be considered personal property.(b) The primary purpose which the item serves. This factor would most generally concern an item that forms a part, or segment, of a series of functions in a manufacturing and/or processing system. If the item is more or less special purpose in nature and its practical use would not enhance the total property if the present or a similar manufacturing processing system were not there, it is more likely to be considered personal property.(c) The stated intent of the owner. This element will come into focus most frequently where leased premises are involved, although it must occasionally be considered where premises are owner-occupied. If the intent of the owner is to move the item upon relocation of the business, the item is more likely to be considered personal property, provided that such a move would be probable, practical, and cost-effective.(2) In determining the proper taxable location, or situs, of personal property, the following factors are to be considered:(b) permanency of the location;(c) home base of the property;(d) domicile of the owner;(e) location as of January 1. The physical location is of prime importance in determining the taxable situs of property that is rarely or infrequently moved. For property that changes location from time to time, the relative permanency of location in a particular place becomes important. If the property is moved with such frequency that it has no more or less permanent location, the home base of the property (such as where it is garaged, sent for repairs, or stored when not in use) is the most significant factor. If the home base cannot be defined, then the domicile of the owner becomes the primary factor. Although the location as of January 1 is a factor to be considered, often it is of nominal importance in determining situs.
Tenn. Comp. R. & Regs. 0600-05-.09
Original rule filed August 29, 1988; effective October 13, 1988.Authority: T.C.A. § 67-5-902.