2010 Tennessee Code
Title 67 - Taxes And Licenses
Chapter 1 - General Provisions
Part 14 - Tax Enforcement Procedures Act
67-1-1426 - Application of proceeds of levy and sale.

67-1-1426. Application of proceeds of levy and sale.

(a)  Collection of Liability.  Any money realized by proceedings under this chapter, whether by seizure, by surrender under § 67-1-1412, except pursuant to § 67-1-1412(b)(2), or by sale of seized property, or by sale of property redeemed by the state, if the interest of the state in such property was a lien arising under the provisions of this title, shall be applied as follows:

     (1)  Expense of Levy and Sale.  The expenses of the proceedings should be deducted from the money received first;

     (2)  Specific Tax Liability on Seized Property.  If the property seized and sold is subject to a tax imposed by any revenue law that has not been paid, the amount remaining after applying subdivision (a)(1) shall then be applied against such tax liability and, if such tax was not previously assessed, it shall then be assessed; and

     (3)  Liability of Delinquent Taxpayer.  The amount, if any, remaining after applying subdivisions (a)(1) and (2) shall then be applied against the liability with respect to which the levy was made or the sale was conducted.

(b)  Surplus Proceeds.  Any surplus proceeds remaining after the application of subsection (a) shall, upon application and satisfactory proof in support of a surplus, be credited or refunded by the commissioner or the commissioner's delegate to the person or persons legally entitled to the surplus.

[Acts 1972, ch. 762, § 11; T.C.A., § 67-6025.]