Bill > HB0057

This bill amends Tennessee law to strengthen accountability for municipal financial audits by establishing penalties for municipalities that fail to submit timely annual audits to the state comptroller. Specifically, the bill requires municipalities to complete and submit their financial audits within six months of their fiscal year-end, providing copies to local government officials, the comptroller, and the press. If a municipality has two or more outstanding late audits, it will face potential sales tax revenue reductions of up to 15% until it comes into compliance. The sales tax penalty will be held in reserve by the state department of revenue and can be reallocated to the municipality once it meets audit submission requirements. The comptroller retains discretion to waive penalties through established policies and procedures. The bill is set to take effect on July 1, 2025, with the stated purpose of promoting governmental transparency and fiscal responsibility at the municipal level.

Government Affairs

https://wapp.capitol.tn.gov/apps/Billinfo/default.aspx?BillNumber=HB0057&ga=114