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TAXATION AND REVENUE SYSTEMS-TENNESSEE. 
Municipal. Revenues. 
A. GENERAL PROPERTY TAXES. 
1. Base— 
The property included and the assessment and 
equalization thereof are the same for municipal taxa 
tion as for the state and county. 
2. Rate— 
Municipalities of over 20,000 inhabitants, 15 mills on the dol 
lar; 12,000 to 20,000, not to exceed 12i mills on the dollar; 
5,000 to 12,000, not to exceed 10 mills on the dollar; under 
5,000, not to exceed mills on the dollar. 
3. Collection— 
The collection is the same as for state and county, 
except that municipal corporations having power un 
der their charter to collect their own taxes on prop 
erty, privileges, and polls may provide therefor by 
ordinance. 
B. POLL TAXES. 
The municipal poll tax is not to exceed $1. 
C AND D. INHERITANCE AND CORPORATION TAXES. 
There are no inheritance or corporation taxes. 
E. BUSINESS TAXES, LICENSES, AND FEES. 
Each municipality is authorized to levy the same 
“ privilege taxes ” as the state and county. 
Taxing District Revenues. 
The several towns, cities, or communities in the state, 
the population of which does not exceed 30,000 and the 
charters of incorporation of which have been repealed 
or shall hereafter be repealed or abolished, are created 
taxing districts, to be styled taxing districts of the sec 
ond class (and known by the name of the town or city 
at the time the corporation became extinct). 
After the debts of the taxing districts have been 
compromised with the creditors, the commissioners 
may by ordinance levy taxes upon all property tax 
able for state purposes and upon all privileges and 
polls, to defray the expenses and pay the compro 
mised debts. A tax of $1 on every $100 is levied on 
property and one on merchants equal to the state tax. 
School Revenues. 
The interest on the permanent school fund and other 
state school moneys is apportioned by the comptroller 
among the several counties according to their school 
population. 
When the income from the state fund is not suffi 
cient to maintain a public school for five months in 
the year, additional taxes, not to exceed the amount 
levied by the state, may be levied by the counties. 
Municipal corporations may also impose an addi 
tional tax. 
The constitutional poll tax and the state tax of li 
mills on all taxable property are collected by the 
county trustee and distributed to the school districts 
according to scholastic population. 
LEGISLATION AFFECTING REVENUE LAWS: 1913. 
Effective January 1, 1914, a state banking department was 
created which is charged with the execution of all laws rela 
tive to corporations, firms, and individuals doing or carrying 
on a banking business in the state. For the support of this 
department every banking house pays into the state treasury 
an annual fee, the amount of said fee being based on the capi 
tal, surplus, and undivided profits of the bank and ranging 
from $10 for $10,000 or less to $500 for $1,000,000 or more. 
Each branch office of a bank pays a fee of $20 in addition to 
amount paid by parent bank. 
For the purpose of school sites or the extension or enlarge 
ment of grounds upon which to build and provide school- 
houses or free public high schools, and the necessary grounds 
appurtenant thereto, all municipal corporations owning, or 
which may in future own, any free public school or free public 
high school were given the right of eminent domain. 
Fraternal beneficiary associations or societies were required 
to pay to the insurance commissioner an annual license fee 
of $10. This fee is in lieu of all other taxes except taxes on 
real estate and office equipment. 
The percentage of the general revenue of the state appropri 
ated to the general education fund was increased from 25 to 
33£. The legislature in this act made further and liberal pro 
visions for increased efficiency of the public school system in 
general and encouraging the establishment of departments of 
industrial work, home economics, manual training, and kin 
dred subjects. 
Provision was made for the creation of road-improvement 
districts upon the application of 25 per cent of the freeholders 
residing within the territory of the proposed district, which 
are empowered to issue and sell interest-bearing bonds for 
the purpose of grading, graveling, and improving the public 
roads within the district. The board of road-improvement dis 
trict commissioners fixes the tax rate for paying the interest on 
and retiring said bonds at maturity. This tax is in lieu of all 
others for road purposes within the district. The county courts 
may issue bonds for highway purposes in the county, said 
issue to be ratified by two-thirds of the voters of the county, 
a tax to provide for such bonds to be levied by the county 
courts. 
Municipalities or taxing districts having a population of less 
than 100,000 were authorized to issue bonds for the purchase 
of land and erection thereon of school buildings, city halls, 
and other public buildings, and for the purchasing or estab 
lishing of public utilities and for general public purposes. 
Also to levy a special tax to pay the interest and retire said 
bonds at maturity. 
All investment companies were required to pay a filing fee of 
$25, with the filing of a full and detailed statement of their 
business, and a semiannual fee of $5, with a statement of its 
financial condition. 
Transient merchants must make a special deposit of $200 
and pay a fee of $25, as a state license; in addition municipal 
corporations may impose a license of not to exceed $20 per 
day for each day they may be engaged in carrying on their 
business. 
Rules and regulations for the government of all cities, towns, 
and other municipalities which may adopt the commission form 
of government, together with the method to be followed in 
adopting same, were provided for by the legislature.