Case Summaries
of Importance to Counties

2010 Taxation

Home Builders Association of Middle Tennessee v. Williamson County, 35 TAM 10-1—Williamson County has been authorized to assess a privilege tax on new construction in the county since 1987. Upon review of the taxes paid between 1998 and 2003, the county notified certain builders that they owed additional tax because the actual square footage of some of their construction was more than the estimated square footage upon which they originally paid tax. The trial court granted summary judgment to the county and the Court of Appeals affirmed. The Tennessee Supreme Court reversed. The Court found that the language of the Act authorizing the tax required that the tax be collected when the building permit is obtained. According to the Court, at that point, the actual square footage is unknown and only the projected square footage is certain. Thus, the tax must be paid based only on the projected square footage (February 25, 2010).