Taxes, Ad Valorem - As enacted, authorizes municipal tax collectors and taxing entities to also accept partial payments of delinquent property taxes in the same manner as county trustees; requires such officials to include in their plan for accepting partial payments a description of the accounting system technology or manual processes to be used to record partial payments of delinquent property taxes and a statement indicating that funds received as partial payments on delinquent property taxes will reduce the amount of delinquent property tax, interest, statutory fees, and court costs, by relative amounts on a pro-rata basis. - Amends TCA Section 67-5-2001.

This bill allows county trustees, municipal tax collectors, and other taxing entities in Tennessee to accept partial payments for overdue property taxes, including electronic transfers and bank payments. To implement this, officials must file a detailed plan with the state comptroller at least 30 days before starting, which must describe their accounting methods and confirm that partial payments will reduce the principal tax, interest, fees, and court costs on a pro-rata basis. The law also requires these entities to maintain internal controls to ensure all payments are recorded correctly and specifies that partial payments do not remove the tax lien on the property. While the bill does not change the due date for taxes, it clarifies that interest will only accrue on the remaining unpaid balance after a partial payment is applied.