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Municipal Technical Advisory Service (MTAS)

Natural Gas Franchise

Reference Number: MTAS-1860
Reviewed Date: 11/30/2022

Revenue Class: Local Taxes

Fund: General

Account No.: 31911

Description: Municipalities can impose a franchise fee and other conditions upon the operation of a gas company within their corporate limits.

Authorization: T.C.A. § 6-54-109; T.C.A. § 65-4-107

Requirements or Restrictions: The franchise agreement is subject to the approval of the Tennessee Regulatory Authority. T.C.A. § 65-4-107. The franchise agreement is passed by municipal ordinance.

Current Rate: Varies; there is no maximum franchise fee.

Frequency of Payment: Annually.

Late Pay Penalty: N/A

Exemptions: N/A

Collection: N/A

Use Restrictions: N/A