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Municipal Technical Advisory Service (MTAS)

Payments in Lieu of Taxes: Sewer Utilities

Reference Number: MTAS-1850
Reviewed Date: 12/17/2021

Revenue Class: Local Taxes

Fund: General

Account No.: 31513

Description: A payment in lieu of tax that cannot exceed the amount of taxes payable on privately owned property of similar nature. A worksheet may be found under MTAS Resources: In-lieu-of tax calculator at http://www.mtas.tennessee.edu/finance-and-accounting

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) 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 authorizing resolution.

Late Pay Interest: Not specified.

Exemptions: None.

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

Use Restrictions: None.