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Classification of Residential Property

Posted by: Azya Thornton on Sep 23, 2025

Court: TN Attorney General Opinions

Hearing Date: 08/25/2025

Opinion Number: 16

Question 1: Pursuant to Article II, Section 28, of the Tennessee Constitution, which states that residential property is to be assessed at 25% of its value, “provided that residential property containing two (2) or more rental units is hereby defined as industrial and commercial property,” what is the appropriate tax classification for a single-family, stand-alone property that is being rented for periods longer than thirty (30) days?

Opinion 1: A single-family, stand-alone property that is being rented for periods longer than thirty days generally will be classified as residential, subject to the caveats discussed below.

Question 2: Pursuant to Article II, Section 28, what is the appropriate tax classification for a duplex where one half is rented and the other half is occupied by the owner?

Opinion 2: A duplex where one half is rented and the other half is owner-occupied generally will be classified as residential, subject to the caveats discussed below.

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