RUTHERFORD COUNTY, Tenn. (WGNS News) – More news from the Rutherford County Property Assessor's Office... Rob Mitchell has filed a Petition for Reconsideration with the Tennessee State Board of Equalization after an earlier ruling supporting residential property classification was later reversed. (Photo above and below article was taken inside of a typical rental property. This property is somewhat rare, as it is a triplex in downtown Murfreesboro, a property that acts as an investment to one local resident who plans to keep the home into his retirement years to continue earning a living. The person that owns this home, also has two similar properties that feature 1-bedroom and 2-bedroom units that lease for $900 to $1,300 monthly).
The appeal involves Charlie Butler v. Rutherford County Assessor’s Office and Division of Property Assessments, identified as APD Case No. 53.02-260293J. According to Mitchell, an administrative judge initially determined that the properties at issue were properly classified as residential. He said that decision changed after the Tennessee Comptroller’s Office became involved and the Division of Property Assessments, commonly known as the DPA, entered the case.
“The Administrative Judge originally ruled that these properties were correctly classified as residential. Only after the Comptroller intervened—prompting the DPA to enter the case—was that ruling reversed. This appeal is necessary to protect taxpayers and uphold the constitutional standards that govern property classification in Tennessee.”
Mitchell’s petition argues that the DPA relied on an ownership-based classification approach that is not supported by the Tennessee Constitution or state law. His position is that property classification should be based on how the property is used rather than the identity or business status of its owner.
The assessor cited the Tennessee Supreme Court’s decision in Crown Enterprises v. State Board of Equalization, which stated:
“Tennessee statutes do not attempt to assess or tax property according to ownership, but according to use.”
Mitchell said the properties involved in the dispute each contain a single rental unit and are occupied as single-family residences. He contends that those facts support residential classification.
“The Comptroller’s intervention led to a reversal of a correct and lawful ruling. The properties at issue each contain only one rental unit and are used by tenants as single-family homes. Under the Constitution, that is residential property. The State’s directive contradicts decades of Supreme Court precedent and threatens uniformity in taxation statewide.”
The petition also references Sevier County v. State Board of Equalization, a Court of Appeals decision Mitchell says reinforces the requirement that property classification be determined according to Tennessee statutes rather than informal or unpromulgated agency policies.
At the center of the dispute is whether the state may direct county assessors to classify certain rental properties based primarily on ownership structure, rather than the actual residential use of the property. Mitchell argues that such an approach could create inconsistent classifications and higher tax assessments for some property owners.
“This appeal is about more than one case. It is about ensuring that constitutional officers, county assessors, are not compelled to follow interpretations that have no grounding in law under threat of non-compliance findings by an administrative agency. Taxpayers deserve uniformity, fairness, and decisions based on the Constitution, not administrative pressure.”
The Tennessee State Board of Equalization will now consider Mitchell’s request for reconsideration. No final decision on the appeal has been announced.
The Rutherford County Assessor’s Office said it plans to provide additional updates as the case moves forward.
