T. C. A. § 8-11-104
mandates that the Trustee account for, allocate, and disburse funds received by the county. The Trustee is required to adopt a system of bookkeeping and accounting that meets the standards outlined in the TCA. State law also specifies that the Trustee report and make settlement for all taxes collected during the preceding month by the tenth day of the new month.
Taxes and other monies such as grants, sales tax distributions, state reimbursements, and interest earnings are received and distributed to various entities within the county for operational and educational purposes.
Shelby County property tax collections are allocated on a daily basis to five different funds:
- Shelby County General Operating Fund
- Shelby County Debt Service Fund
- Memphis City Schools
- Shelby County Schools
- Rural School Bond Fund
The amount of these distributions is determined by the Shelby County Board of Commissioners when the tax rate is set each year.
Allocations for Schools
A portion of the Shelby County tax money historically has been allocated to the Memphis City Schools and Shelby County Schools based on the average daily attendance for each school system. The ratio for fiscal year ending 2014 is 100 percent to the consolidated Shelby County School system. The ratio following FY2014 will change again to a yet-determined ratio based on the average daily attendance for each existing school district within Shelby County. This ratio is certified by the Tennessee State Department of Education.
Sales Tax Distributions
Each month the Trustee receives state and local sales tax distributions from the State of Tennessee. The money from the state represents actual sales tax collections in Shelby County. These funds are further distributed to the municipalities within the county as well as Shelby County Government, Memphis City Schools, and Shelby County Schools. The money given to the schools is again based on an average daily attendance rate for each school system.