Add Tennessee elderly property tax relief

changelog.d/8307.added.md

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+Added Tennessee property tax relief for elderly homeowners.

policyengine_us/parameters/gov/states/household/state_property_tax_credits.yaml

@@ -114,6 +114,26 @@ values:
     - wi_homestead_credit
     - wi_property_tax_credit
     - wv_homestead_excess_property_tax_credit
+  2025-01-01:
+    - az_property_tax_credit
+    - ct_property_tax_credit
+    - dc_ptc
+    - il_property_tax_credit
+    - ma_senior_circuit_breaker
+    - me_property_tax_fairness_credit
+    - mi_homestead_property_tax_credit
+    - mo_property_tax_credit
+    - mt_elderly_homeowner_or_renter_credit
+    - mt_property_tax_rebate
+    - nj_property_tax_credit
+    - nm_property_tax_rebate
+    - ny_real_property_tax_credit
+    - ok_ptc
+    - ri_property_tax_credit
+    - tn_elderly_property_tax_relief
+    - wi_homestead_credit
+    - wi_property_tax_credit
+    - wv_homestead_excess_property_tax_credit
 
 metadata:
   unit: list

policyengine_us/parameters/gov/states/tn/tax/property/elderly_property_tax_relief/age_threshold.yaml

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+description: Tennessee sets the qualifying age to this threshold under the Property Tax Relief for Elderly Homeowners program.
+values:
+  2025-01-01: 65
+
+metadata:
+  unit: year
+  period: year
+  label: Tennessee elderly property tax relief age threshold
+  reference:
+    - title: Tennessee Comptroller Tax Relief Brochure
+      href: https://comptroller.tn.gov/content/dam/cot/pa/documents/tax-relief/TaxReliefBrochure.pdf
+    - title: Tennessee Code Annotated Sections 67-5-701 through 67-5-704
+      href: https://comptroller.tn.gov/content/dam/cot/pa/documents/tax-relief/TCA%2067-5-701%20through%2067-5-704.pdf

policyengine_us/parameters/gov/states/tn/tax/property/elderly_property_tax_relief/assessment_rate.yaml

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+description: Tennessee uses this assessment rate for residential property under the Property Tax Relief for Elderly Homeowners program.
+values:
+  2025-01-01: 0.25
+
+metadata:
+  unit: /1
+  period: year
+  label: Tennessee elderly property tax relief residential assessment rate
+  reference:
+    - title: Tennessee Code Annotated Sections 67-5-701 through 67-5-704
+      href: https://comptroller.tn.gov/content/dam/cot/pa/documents/tax-relief/TCA%2067-5-701%20through%2067-5-704.pdf

policyengine_us/parameters/gov/states/tn/tax/property/elderly_property_tax_relief/income_limit.yaml

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+description: Tennessee limits income to this amount under the Property Tax Relief for Elderly Homeowners program.
+values:
+  2025-01-01: 37_530
+  2026-01-01: 38_470
+
+metadata:
+  unit: currency-USD
+  period: year
+  label: Tennessee elderly property tax relief income limit
+  reference:
+    - title: Tennessee Comptroller Tax Relief Brochure
+      href: https://comptroller.tn.gov/content/dam/cot/pa/documents/tax-relief/TaxReliefBrochure.pdf
+    - title: Tennessee Comptroller 2026 Tax Freeze Income Limits
+      href: https://comptroller.tn.gov/content/dam/cot/pa/documents/tax-freeze/TaxFreezeIncomeLimitsList2026.pdf
+    - title: Tennessee Code Annotated Sections 67-5-701 through 67-5-704
+      href: https://comptroller.tn.gov/content/dam/cot/pa/documents/tax-relief/TCA%2067-5-701%20through%2067-5-704.pdf

policyengine_us/parameters/gov/states/tn/tax/property/elderly_property_tax_relief/property_value_cap.yaml

@@ -0,0 +1,16 @@
+description: Tennessee limits property value to this amount under the Property Tax Relief for Elderly Homeowners program.
+values:
+  2025-01-01: 32_700
+  2026-01-01: 32_700
+
+metadata:
+  unit: currency-USD
+  period: year
+  label: Tennessee elderly property tax relief property value cap
+  reference:
+    - title: Tennessee Comptroller Tax Relief Brochure
+      href: https://comptroller.tn.gov/content/dam/cot/pa/documents/tax-relief/TaxReliefBrochure.pdf
+    - title: University of Tennessee Municipal Technical Advisory Service Property Tax Relief for Elderly and Disabled
+      href: https://www.mtas.tennessee.edu/reference/property-tax-relief-elderly-and-disabled
+    - title: Tennessee Code Annotated Sections 67-5-701 through 67-5-704
+      href: https://comptroller.tn.gov/content/dam/cot/pa/documents/tax-relief/TCA%2067-5-701%20through%2067-5-704.pdf

policyengine_us/tests/policy/baseline/gov/states/tn/tax/property/elderly_property_tax_relief/tn_elderly_property_tax_relief.yaml

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+- name: Case 1, senior homeowner receives relief on the capped assessed value.
+  period: 2026
+  input:
+    people:
+      person1:
+        age: 65
+        real_estate_taxes: 1_000
+        assessed_property_value: 25_000
+    tax_units:
+      tax_unit:
+        members: [person1]
+        adjusted_gross_income: 38_470
+    households:
+      household:
+        members: [person1]
+        state_code: TN
+  output:
+    # Capped assessed value = 32,700 * 25% = 8,175.
+    # Relief = 1,000 * 8,175 / 25,000.
+    tn_elderly_property_tax_relief: 327
+
+- name: Case 2, home below the value cap receives relief for all real estate taxes.
+  period: 2026
+  input:
+    people:
+      person1:
+        age: 70
+        real_estate_taxes: 400
+        assessed_property_value: 6_000
+    tax_units:
+      tax_unit:
+        members: [person1]
+        adjusted_gross_income: 30_000
+    households:
+      household:
+        members: [person1]
+        state_code: TN
+  output:
+    tn_elderly_property_tax_relief: 400
+
+- name: Case 3, senior homeowner above the 2025 income limit receives no relief.
+  period: 2025
+  input:
+    people:
+      person1:
+        age: 70
+        real_estate_taxes: 1_000
+        assessed_property_value: 25_000
+    tax_units:
+      tax_unit:
+        members: [person1]
+        adjusted_gross_income: 37_531
+    households:
+      household:
+        members: [person1]
+        state_code: TN
+  output:
+    tn_elderly_property_tax_relief: 0
+
+- name: Case 4, missing assessed property value yields no relief.
+  period: 2026
+  input:
+    people:
+      person1:
+        age: 70
+        real_estate_taxes: 1_000
+    tax_units:
+      tax_unit:
+        members: [person1]
+        adjusted_gross_income: 30_000
+    households:
+      household:
+        members: [person1]
+        state_code: TN
+  output:
+    tn_elderly_property_tax_relief: 0

policyengine_us/tests/policy/baseline/gov/states/tn/tax/property/elderly_property_tax_relief/tn_elderly_property_tax_relief_eligible.yaml

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+- name: Case 1, senior homeowner at the 2026 income limit is eligible.
+  period: 2026
+  input:
+    people:
+      person1:
+        age: 65
+        real_estate_taxes: 1_000
+        assessed_property_value: 25_000
+    tax_units:
+      tax_unit:
+        members: [person1]
+        adjusted_gross_income: 38_470
+    households:
+      household:
+        members: [person1]
+        state_code: TN
+  output:
+    tn_elderly_property_tax_relief_eligible: true
+
+- name: Case 2, senior homeowner above the 2026 income limit is ineligible.
+  period: 2026
+  input:
+    people:
+      person1:
+        age: 65
+        real_estate_taxes: 1_000
+        assessed_property_value: 25_000
+    tax_units:
+      tax_unit:
+        members: [person1]
+        adjusted_gross_income: 38_471
+    households:
+      household:
+        members: [person1]
+        state_code: TN
+  output:
+    tn_elderly_property_tax_relief_eligible: false
+
+- name: Case 3, homeowner below the age threshold is ineligible.
+  period: 2026
+  input:
+    people:
+      person1:
+        age: 64
+        real_estate_taxes: 1_000
+        assessed_property_value: 25_000
+    tax_units:
+      tax_unit:
+        members: [person1]
+        adjusted_gross_income: 30_000
+    households:
+      household:
+        members: [person1]
+        state_code: TN
+  output:
+    tn_elderly_property_tax_relief_eligible: false
+
+- name: Case 4, senior renter is ineligible.
+  period: 2026
+  input:
+    people:
+      person1:
+        age: 70
+        rent: 12_000
+    tax_units:
+      tax_unit:
+        members: [person1]
+        adjusted_gross_income: 30_000
+    households:
+      household:
+        members: [person1]
+        state_code: TN
+  output:
+    tn_elderly_property_tax_relief_eligible: false
+
+- name: Case 5, senior homeowner outside Tennessee is ineligible.
+  period: 2026
+  input:
+    people:
+      person1:
+        age: 70
+        real_estate_taxes: 1_000
+        assessed_property_value: 25_000
+    tax_units:
+      tax_unit:
+        members: [person1]
+        adjusted_gross_income: 30_000
+    households:
+      household:
+        members: [person1]
+        state_code: KY
+  output:
+    tn_elderly_property_tax_relief_eligible: false

policyengine_us/variables/gov/states/tn/tax/property/elderly_property_tax_relief/tn_elderly_property_tax_relief.py

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+from policyengine_us.model_api import *
+
+
+class tn_elderly_property_tax_relief(Variable):
+    value_type = float
+    entity = TaxUnit
+    label = "Tennessee elderly property tax relief"
+    unit = USD
+    definition_period = YEAR
+    reference = (
+        "https://comptroller.tn.gov/office-functions/pa/property-taxes/property-tax-programs/tax-relief.html",
+        "https://comptroller.tn.gov/content/dam/cot/pa/documents/tax-relief/TaxReliefBrochure.pdf",
+        "https://comptroller.tn.gov/content/dam/cot/pa/documents/tax-relief/TCA%2067-5-701%20through%2067-5-704.pdf",
+    )
+    defined_for = "tn_elderly_property_tax_relief_eligible"
+
+    def formula(tax_unit, period, parameters):
+        p = parameters(period).gov.states.tn.tax.property.elderly_property_tax_relief
+        assessed_property_value = add(tax_unit, period, ["assessed_property_value"])
+        capped_assessed_property_value = min_(
+            assessed_property_value,
+            p.property_value_cap * p.assessment_rate,
+        )
+        return (
+            add(tax_unit, period, ["real_estate_taxes"])
+            * capped_assessed_property_value
+            / assessed_property_value
+        )

policyengine_us/variables/gov/states/tn/tax/property/elderly_property_tax_relief/tn_elderly_property_tax_relief_eligible.py

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+from policyengine_us.model_api import *
+
+
+class tn_elderly_property_tax_relief_eligible(Variable):
+    value_type = bool
+    entity = TaxUnit
+    label = "Eligible for the Tennessee elderly property tax relief"
+    definition_period = YEAR
+    reference = (
+        "https://comptroller.tn.gov/office-functions/pa/property-taxes/property-tax-programs/tax-relief.html",
+        "https://comptroller.tn.gov/content/dam/cot/pa/documents/tax-relief/TaxReliefBrochure.pdf",
+        "https://comptroller.tn.gov/content/dam/cot/pa/documents/tax-relief/TCA%2067-5-701%20through%2067-5-704.pdf",
+    )
+    defined_for = StateCode.TN
+
+    def formula(tax_unit, period, parameters):
+        p = parameters(period).gov.states.tn.tax.property.elderly_property_tax_relief
+        return (
+            (tax_unit("greater_age_head_spouse", period) >= p.age_threshold)
+            & (
+                tax_unit("tn_elderly_property_tax_relief_income", period)
+                <= p.income_limit
+            )
+            & (add(tax_unit, period, ["real_estate_taxes"]) > 0)
+            & (add(tax_unit, period, ["assessed_property_value"]) > 0)
+            & ~tax_unit("rents", period)
+        )

policyengine_us/variables/gov/states/tn/tax/property/elderly_property_tax_relief/tn_elderly_property_tax_relief_income.py

@@ -0,0 +1,12 @@
+from policyengine_us.model_api import *
+
+
+class tn_elderly_property_tax_relief_income(Variable):
+    value_type = float
+    entity = TaxUnit
+    label = "Tennessee elderly property tax relief income"
+    unit = USD
+    definition_period = YEAR
+    defined_for = StateCode.TN
+
+    adds = ["adjusted_gross_income"]