Section 1320-02-01-.15 - MANNER AND CONDITIONS OF SALE(1) The manner of sale shall be determined by the Commissioner or his delegate before publication of notice thereof. The sale shall not be conducted in any manner other than as determined and announced. The manner of sale shall be either: (a) at public auction at which open competitive bids shall be received, or(a) at public auction at which open competitive bids shall be received, or(b) at public sale under sealed bids. The following rules, in addition to the other rules provided for herein, shall be applicable to a sale of property seized by levy at public sale under sealed bids:1. Bids shall be solicited through a public notice of sale and invitation to bidders.2. A bid shall be submitted on a form which shall be furnished by the Commissioner or his delegate upon request. The form shall be completed in accordance with the instructions appearing thereon.3. The seized property may be offered for sale(i) as separate items, or(ii) as groups of items, or(iii) in the aggregate, or(iv) both as separate items (or in groups) and in the aggregate. If offered for sale under this provision, the property shall be sold under the method which produces the highest aggregate amount. The Commissioner or his delegate shall select whichever of the four foregoing methods of offering the property for sale as, in his opinion, is most feasible under all of the facts and circumstances of the case. Such selection shall be made prior to notice of sale if the manner of sale is under sealed bids but may be made at the sale if it is at public auction. If the property to be sold includes both real and personal property, only the personal property may be grouped for the purpose of offering such property for sale. However, real and personal property may be offered for sale in the aggregate, provided the real property, as separate items, and the personal property as a group, or as groups, or as separate items, are first offered separately.
(2) The officer conducting the sale may announce the minimum price before the sale begins or, in his discretion, may simply state that a minimum price has been determined and defer announcement of the amount of the minimum price until after the receipt of the highest bid. In the latter event and if the highest bid is greater than the minimum price, no announcement of the minimum price shall be made by him.(3) Property seized by levy shall be offered for sale upon whichever of the following terms is fixed by the Commissioner or his delegate as may be determined by him and as announced 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 the sale.(4) The Commissioner or his delegate may use other methods of giving notice of sale and of advertising seized property in addition to those referred to in T.C.A. § 67-1-1415 when he believes that the nature of the property to be sold is such that a wider or more specialized advertising coverage will enhance the possibility of obtaining a higher price for the property.(5) When it appears to the Commissioner or his delegate that an adjournment of the sale will best serve the interest of the state or that of the taxpayer, he may adjourn, or cause the officer conducting the sale to adjourn, the sale from time to time; but the sale shall be held no later than one month after the date fixed in the original notice of sale.(6)(a) If payment in full is required upon acceptance of any bid and it is not then and there paid, the officer conducting the sale shall forthwith proceed again to sell the property in the manner provided by T.C.A. § 67-1-1418 and the rule prescribed thereunder. If the manner of sale is at public auction the officer conducting the sale may declare the bid of the defaulting bidder to be null and void for failure to make full payment of the amount bid. He may proceed forthwith to sell the property to any other bidder offering the highest bid from among those bidders remaining on the premises; but he shall not sell it for less than the minimum price determined by the Commissioner or his delegate. If no additional bids are received, or if the highest bid thereafter received is for not as much as the minimum price, the property shall again be advertised and sold as provided by law.(b) If the conditions of the sale permit part of the payment to be deferred, and if such part is not paid within the prescribed period, suit may be instituted against the purchaser for the purchase price or such part thereof as has not been paid, together with interest at the rate allowed by the Tax Enforcement Procedures Act from the date of sale; or, in the discretion of the Commissioner or his delegate, the sale may be declared null and void for failure to make full payment of the purchase price and the property may again be advertised and sold as provided by law. In the event of such readvertisement and sale, any new purchaser shall receive such property or rights to property free and clear of any claim or right of the former defaulting purchaser, of any nature whatsoever, and the amount paid upon the bid price by such defaulting purchaser shall be forfeited to the states such amount forfeited shall be paid over by the Commissioner and distributed in the same manner as the subject tax.Tenn. Comp. R. & Regs. 1320-02-01-.15
Original rule filed June 7, 1974. Amendment filed June 22, 1989; effective September 27, 1989. Amendment filed June 28, 2000; effective September 11, 2000.Authority: T.C.A. §§ 67-1-1439 and 67-1-1418.