Revenue Class: Licenses and Permits

Fund: General

Account No.: 32610

Description: Revenue received from the sale of building permits and builder and contractor licenses. Municipalities are authorized and empowered to enact laws or ordinances to safeguard and protect the home owner or prospective home owner, commercial property owner or assembly building property owner by requiring the licensing of the residential, commercial or assembly builders and residential, commercial and assembly maintenance and alteration contractors.

Authorization: T.C.A. § 6-54-501 et seq.; T.C.A. § 7-62-101 et seq.; T.C.A. § 7-62-201 et seq.

Requirements or Restrictions: City cannot issue more than 10 active building permits at one time to an unlicensed contractor. T.C.A. § 7-62-202 (b). Unlicensed contractors are required to post a cash bond with the city for a period of at least two years. T.C.A. § 7-62-203.

Fees over $250: Beginning July 1, 2026 each department, agency or official of a city who assesses and collects a fee related to development in excess of two hundred fifty dollars ($250) will be required to maintain documentation describing the justification and cost basis for such fee. Such documentation is also required upon the adoption of a new fee or for a change in the amount of an existing fee that is related to development and in excess of two hundred fifty dollars ($250). Defines “cost basis” and “development.” Requires the documentation to be maintained and kept on file by the department, agency or official. Also provides that the documentation is a public record and subject to an annual audit by the Comptroller of the Treasury.

Current Rate: Varies.

Frequency of Payment: Upon issuance of permit.

Late Pay Penalty: N/A

Exemptions: N/A

Collection: N/A

Use Restrictions: None.