TN HB0057

Municipal audits must be completed and submitted to the comptroller of the treasury within 6 months following the end of the municipality's fiscal year

Audit copies must be furnished to the mayor, chief executive officer, each governing body member, the comptroller of the treasury, and made available to the press

Municipalities with 2 or more outstanding late annual audits face penalties through reduced state sales tax distributions, up to 15% of the total amount due in a fiscal year

Withheld sales tax revenues are held in reserve by the department of revenue and returned to the municipality once audit compliance is achieved

The comptroller of the treasury may waive penalties according to established policies and procedures; effective July 1, 2025