April 28, 2004
Ms. Debbie Cook, City Recorder
City of Lenoir City
600 East Broadway
P.O. Box 445
Lenoir City, Tennessee
Re: Delinquent Business Tax
Dear Ms. Cook
TCA 67-4-719(4)(c) indicates that in the case of taxes owed a municipality, the proper
tax collector is empowered and it is their duty when any tax becomes delinquent under
this part, to issue a distress warrant for the collection of tax, interest and penalty for each
delinquent taxpayer. The Act requires that you send them a notice prior to the issuance
of a distress warrant. Enclosed is a notice which has been reviewed by an MTAS Legal
Consultant that should be sent under your signature on city stationery and a distress
warrant to use if the taxes and fees remain unpaid. The tax collector is authorized to sign
the distress warrant. In summary, Tennessee law requires that you sent the notice and
issue a distress warrant if the tax is not paid.
The law provides (TCA 6-55-301) that the clerk shall issue to the sheriff, city marshal, or
any constable a distress warrant, commanding such official to levy, in case of a privilege
tax, double the highest tax imposed upon any such privilege, and in other cases double
the highest tax imposed on any similar business, together with costs and charges, by
distraining and selling so much of the delinquent’s goods and chattels as shall be
sufficient for the purpose. This includes taking cash from the cash drawer if necessary.
We believe that a police officer may serve the distress warrant.
Since council members may not understand the procedure required by state law, you may
want to send copies of this correspondence to council members.
Please call me if you have questions about the distress warrant and notice.
Sincerely
Ron Darden
Municipal Management Consultant
cc. Mayor Mathew Brookshire
City Administrator Dale Hurst
MTAS Legal Consultant Melissa Ashburn
NOTICE
Notice is hereby served that the City of __________, Tennessee
shall, ten (10) days from the mailing of this notice, cause a distress
warrant to be issued for delinquent taxes. Tennessee Code Annotated
§§ 6-55-301 et seq and 67-4-719 authorize the City to issue such a
warrant to the police who are then empowered to seize goods and
chattels bearing a value of twice the highest amount of the taxes owed.
If after the seizure of such property the delinquent taxes are not paid,
the City may, upon ten (10) days notice, conduct a sale of the distrained
goods. The delinquent taxes are due for any and all years, up to six (6)
years duration, that you have failed to pay business taxes to the City.
We regret that we have to take this measure, however, an
increasing amount of revenue is being denied to the City of _________
because of your delinquent taxes. It is inequitable for those businesses
which pay taxes to subsidize those that do not.
Payment of delinquent taxes within ten (10) days will prevent
the seizure of your property.
State of Tennessee, Loudon County, City of Lenoir City
TO THE CHIEF OF POLICE OF THE CITY OF
OR ANY LAWFUL
OFFICER THEREOF, GREETINGS:
Whereas,________________________________________________________________
______________________________________, is the owner of certain tangible or
intangible property in the said City of ____________, and is indebted to the City of
__________ for the following past due Business Taxes to wit:
For Taxing Periods:
______________________
Business Tax Due:
______________________
Subtotal Due:
_______________________
Distress Warrant Fee: _____________________
Total Amount Due:
_____________________
Now, therefore, you are hereby commanded to distrain and sell so much goods, chattels
and personal property, either tangible or intangible, of the
said_____________________________
______________________________________, as shall be sufficient to pay
______________
__________________________Dollars ($) all of which is past due and owing to the City
of _____________, being the tax, interest and penalty imposed by law in such cases, and
provided, and to execute and make return to me by the ______day of____________,
2003, under the penalty prescribed by law. Herein fail not.
Witness my hand at office this________day of ____________-, 2003.
_________________________________
City Recorder
Account Number_____________
OFFICER’S RETURN
Executed as commanded by attaching the following property:
_________________________________________________________
_________________________________________________________
_________________________________________________________
and taking into my custody
This ________day of ________________, 2003. ________________________
Police Officer, City of _________
And finally after advertisement according to law, I sold the above described property on
the ____day of ______, 2003 and tender herewith the sum of
_____________________Dollars realized from said sale.
This______day of _______________, 2003. ________________________________
Police Officer, City of ___________
Collected from the Taxpayer in lieu of executing the within writ
$____________________ in cash, this__________day of _________, 2003.
__________________________________
Police Officer, City of ____________
Distress Warrant
City of _________
VS.
________________________________________________________________________
____
________________________________________________________________________
____
Issued the _______day of _____________, 2003.
_________________________________
City Recorder
Came to hand the ______day of ___________,2003. _____________________________
Police Officer, City of ___________
Received by: ________________________________