Bill > SB0115

This bill amends Tennessee law to strengthen requirements and penalties for municipalities that fail to submit timely annual financial audits to the state comptroller. Specifically, the bill mandates that all municipal audits must be completed and submitted within six months after the end of the municipality's fiscal year, with copies provided to local government officials and the press. If a municipality has two or more outstanding late annual audits, it will face financial penalties where the state can reduce its sales tax revenue distribution by up to 15% until the municipality complies with audit submission requirements. The reduced sales tax funds will be held in reserve and returned to the municipality once it becomes compliant, as determined by the state comptroller. The comptroller retains discretion to waive these penalties according to established policies. The bill is set to take effect on July 1, 2025, and is designed to improve financial transparency and accountability for municipal governments in Tennessee.

Government Affairs

https://wapp.capitol.tn.gov/apps/Billinfo/default.aspx?BillNumber=SB0115&ga=114