Tenn. Comp. R. & Regs. 0600-14-.04
Current through January 8, 2025
The value of the excess, if any, of the Fair Market Rent over the Actual Rent and Imputed Rent must first be determined. If the Fair Market Rent for a subject property is equal to or less than the combination of the Actual Rent and the Imputed Rent, then the Leasehold Interest has no taxable value. If the Fair Market Rent for a subject property exceeds the combination of the Actual Rent and the Imputed Rent, then the excess, calculated on an annual basis, is discounted over the remaining term in years, including optional renewal terms, to its present value as of the appraisal date, which represents the taxable value of the Leasehold Interest.
Tenn. Comp. R. & Regs. 0600-14-.04
Authority: T.C.A. §§ 67-1-305, 67-5-502(d), and 67-5-605.