# Tenn. Code Ann. § 67-5-104: Locality does not meet municipality requirements > Tennessee · Statutes · In force URL: https://www.frixlaw.com/law-library/statutes/STATE_TN_T67_C5_S67-5-104 ## Section - **Citation:** Tenn. Code Ann. § 67-5-104 - **Heading:** Locality does not meet municipality requirements - **Jurisdiction:** Tennessee - **Kind:** Statutes - **Status:** In force - **Text as of:** August 14, 2026 - **Source:** Compiled text - **Location:** TN Code / Title 67 / Chapter 5 / Section 67-5-104 ## Text (a) Notwithstanding any provisions of title 6 or any other law to the contrary: If, after July 1, 1998, a locality is deemed by the state to be a municipality for purposes of distributing grants or state-shared taxes; and If, thereafter the locality, acting in good faith and under color of law and for municipal purposes, collects and expends or obligates municipal property tax revenues; and If, thereafter it is judicially determined that the locality was not incorporated in accordance with the requirements of law and, therefore, is not a municipality; then neither the locality nor any person who acted on behalf of the locality is required to return or repay such municipal property tax revenues; however, any portion of such municipal property tax revenues, that remains unexpended and unobligated, shall be returned to the municipal property taxpayers on a pro rata basis. (b) As used in subsection (a), "the locality, acting in good faith and under color of law and for municipal purposes, collects and expends" includes, but is not limited to, reimbursement paid from municipal property tax revenues for documented, reasonable expenses of municipal incorporation that were paid out-of-pocket by one (1) or more residents acting on behalf of the locality and its incorporation. (c) Notwithstanding any law to the contrary: If, grants, state-shared taxes and municipal property tax revenues were co-mingled by the locality, then for purposes of subsection (a) and § 9-4-5306(a) , there shall be a rebuttable presumption that the locality expended or obligated all such grants and state-shared taxes before it expended or obligated any such municipal property tax revenues. Acts 2000, ch. 898, § 2. (a) Notwithstanding any provisions of title 6 or any other law to the contrary: If, after July 1, 1998, a locality is deemed by the state to be a municipality for purposes of distributing grants or state-shared taxes; and If, thereafter the locality, acting in good faith and under color of law and for municipal purposes, collects and expends or obligates municipal property tax revenues; and If, thereafter it is judicially determined that the locality was not incorporated in accordance with the requirements of law and, therefore, is not a municipality; then neither the locality nor any person who acted on behalf of the locality is required to return or repay such municipal property tax revenues; however, any portion of such municipal property tax revenues, that remains unexpended and unobligated, shall be returned to the municipal property taxpayers on a pro rata basis. If, after July 1, 1998, a locality is deemed by the state to be a municipality for purposes of distributing grants or state-shared taxes; and If, thereafter the locality, acting in good faith and under color of law and for municipal purposes, collects and expends or obligates municipal property tax revenues; and If, thereafter it is judicially determined that the locality was not incorporated in accordance with the requirements of law and, therefore, is not a municipality; then neither the locality nor any person who acted on behalf of the locality is required to return or repay such municipal property tax revenues; however, any portion of such municipal property tax revenues, that remains unexpended and unobligated, shall be returned to the municipal property taxpayers on a pro rata basis. (b) As used in subsection (a), "the locality, acting in good faith and under color of law and for municipal purposes, collects and expends" includes, but is not limited to, reimbursement paid from municipal property tax revenues for documented, reasonable expenses of municipal incorporation that were paid out-of-pocket by one (1) or more residents acting on behalf of the locality and its incorporation. s used in subsection (a), "the locality, acting in good faith and under color of law and for municipal purposes, collects and expends" includes, but is not limited to, reimbursement paid from municipal property tax revenues for documented, reasonable expenses of municipal incorporation that were paid out-of-pocket by one (1) or more residents acting on behalf of the locality and its incorporation. (c) Notwithstanding any law to the contrary: If, grants, state-shared taxes and municipal property tax revenues were co-mingled by the locality, then for purposes of subsection (a) and § 9-4-5306(a) , there shall be a rebuttable presumption that the locality expended or obligated all such grants and state-shared taxes before it expended or obligated any such municipal property tax revenues. If, grants, state-shared taxes and municipal property tax revenues were co-mingled by the locality, then for purposes of subsection (a) and § 9-4-5306(a) , there shall be a rebuttable presumption that the locality expended or obligated all such grants and state-shared taxes before it expended or obligated any such municipal property tax revenues. Acts 2000, ch. 898, § 2. ## Nearby sections - [Tenn. Code Ann. § 67-5-101 Property subject to tax generally](https://www.frixlaw.com/law-library/statutes/STATE_TN_T67_C5_S67-5-101.md) - [Tenn. Code Ann. § 67-5-102 Taxation by county](https://www.frixlaw.com/law-library/statutes/STATE_TN_T67_C5_S67-5-102.md) - [Tenn. Code Ann. § 67-5-103 Taxation by municipality](https://www.frixlaw.com/law-library/statutes/STATE_TN_T67_C5_S67-5-103.md) - [Tenn. Code Ann. § 67-5-104 Locality does not meet municipality requirements](https://www.frixlaw.com/law-library/statutes/STATE_TN_T67_C5_S67-5-104.md) - [Tenn. Code Ann. § 67-5-105 Chapter definitions](https://www.frixlaw.com/law-library/statutes/STATE_TN_T67_C5_S67-5-105.md) - [Tenn. Code Ann. § 67-5-201 Real property transferred between exempt and nonexempt persons](https://www.frixlaw.com/law-library/statutes/STATE_TN_T67_C5_S67-5-201.md) - [Tenn. Code Ann. § 67-5-202 Trust estates](https://www.frixlaw.com/law-library/statutes/STATE_TN_T67_C5_S67-5-202.md) - [Tenn. Code Ann. § 67-5-203 Government property](https://www.frixlaw.com/law-library/statutes/STATE_TN_T67_C5_S67-5-203.md) - [Tenn. Code Ann. § 67-5-204 Public ways](https://www.frixlaw.com/law-library/statutes/STATE_TN_T67_C5_S67-5-204.md) - [Tenn. Code Ann. § 67-5-205 Government bonds and notes](https://www.frixlaw.com/law-library/statutes/STATE_TN_T67_C5_S67-5-205.md) - [Tenn. Code Ann. § 67-5-206 Housing authorities](https://www.frixlaw.com/law-library/statutes/STATE_TN_T67_C5_S67-5-206.md) - [Tenn. Code Ann. § 67-5-207 Religious, charitable, scientific, educational institutions](https://www.frixlaw.com/law-library/statutes/STATE_TN_T67_C5_S67-5-207.md) - [Tenn. Code Ann. § 67-5-208 Recycling waste products](https://www.frixlaw.com/law-library/statutes/STATE_TN_T67_C5_S67-5-208.md) - [Tenn. Code Ann. § 67-5-209 Private act hospital authorities](https://www.frixlaw.com/law-library/statutes/STATE_TN_T67_C5_S67-5-209.md) --- Source: Frix Law Library, https://www.frixlaw.com/law-library/statutes/STATE_TN_T67_C5_S67-5-104. Check the current official text before relying on it. Not legal advice.