City of Morristown
PROPERTY TAX RATE

The property tax rate for the City of Morristown is $1.09 per $100 property valuation. Every person owning or holding real property or tangible personal property on January 1 of any calendar year shall be liable for taxes, with exemptions for certain properties. Valuation of real property is established by appraisal. The County Property Assessor appraises all taxable real and personal property within the City, except for property of public utilities and common carriers, which is appraised statewide by the sate comptroller's office annually. Tennessee law requires that property be assessed at the following percentages of true value:

Personal property 30%
Residential real property 25%
Agricultural real property 25%
Utility, railroad, etc. 30%
Commercial and Industrial 40%

Property taxes are due and payable by November 30 of that year and delinquent on December 1. Delinquent accounts are subject to a 4.5% penalty at December 1 and a 1% penalty for each month thereafter.

The city offers a two percent discount on property taxes if paid in full during the first month (usually August) of collections.
PROPERTY TAX RELIEF PROGRAM

The City of Morristown participates in a state-sponsored Property Tax Relief Program. The program is designed to help those individuals who might otherwise struggle to meet the expense of property tax.

To qualify for property tax relief, individuals must be at least 65 years of age, permanently disabled, a disabled veteran, or widow(er) of a disabled veteran, and own and live on property in Tennessee that was their main residence during the calendar year. The owners of the property for which tax relief is requested must have a combined annual income of $12,530 (2002) or less.

Disabled veterans are eligible if they have received their disability rating from a service-connected disability, combat-related injuries, or prisoner of war status for five or more months. Widows or widowers of disabled veterans must have been married to a veteran who met one of the above conditions and must not have remarried.

Applicants for property tax relief must supply the following:

1. a list of income sources
2. the amount of annual income derived from each source
3. proof of property ownership in the form of a tax receipt, deed, probated will, or other court document
4. a copy of both Social Security and Medicare cards
5. proof of age
6. proof of disability
Application for property tax relief must be made 35 days from due date.

SALES TAX RATES

City Sales Tax: 2.5% per dollar spent within the city

State Sales Tax: 7% per dollar spent within the state

Combined Sales Tax: 9.5% per dollar spend

HOTEL/MOTEL TAX

Hotels and motels operating within the corporate limits of the City of Morristown are subject to the Hotel/Motel Tax. The tax is 5% of the gross room occupancy charge. It is collected on a monthly basis. The deadline for submission of the tax is the 20th day of the month for the preceding month.
Penalties for late payment are ½ of 1% per month, or 12% per annum.
A tax form must be filed even if no taxes are due.