Definitions

As used in these rules and in interpretation of T.C.A. § 67-5-502 and T.C.A. § 67-5-605, unless context requires otherwise: (1) “Taxable Interest” means an interest in real property subject to assessment and taxation. (2) “Leasehold Interest” means an interest in real property under the terms of a lease or agreement for a specified period of time. (3) “Leasehold Owner” means the owner of the current Leasehold Interest, typically the lessee. (4) “Real Property Interest” means an interest in real property arising from the combination of a physical relationship to the property that confers a degree of physical control over the property and the intent to exercise such control to the exclusion of others. Neither the right to use nor the right to enter and leave property is sufficient to create a Real Property Interest. (5) “Actual Rent” means rent or other compensation paid under a lease or similar agreement. (6) “Imputed Rent” means those costs paid by the lessee that are typically borne by the lessor or owner of the property, including the cost of capital improvements, real property maintenance, and the cost of insurance. The term of the lease or other agreement, including optional renewal terms, shall be used for purposes of amortizing the cost of real-property, capital, or other improvements borne by the Leasehold Owner. (7) “Fair Market Rent” means the fair market annual rental value for a Leasehold Interest based upon rents paid to lease comparable properties.