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Payment in Lieu of Taxes: Water Utilities

Reference Number: MTAS-1849
Reviewed Date: 11/22/2022

Revenue Class: Local Taxes

Fund: General

Account No.: 31512

Description: A payment in lieu of tax that cannot exceed the amount of taxes payable on privately owned property of similar nature. A calculation worksheet may be found under "MTAS Resources: In-lieu-of tax calculator at:

Authorization: T.C.A. § 7-34-115 (a)(9)

Requirements or Restrictions: Must be authorized by resolution.

Current Rate: Varies by municipality, based on 1) the equalized tax rate, 2) net book value of net fixed assets located within the city limits, and 3) book value of inventory located within the city limits.

Frequency of Payment: Established in the authorizing resolution.

Late Pay Interest: Not specified.

Exemptions: None.

Collection: Payment is made by water utility to municipality pursuant to authorizing resolution.

Use Restrictions: None.