Accounting & Reporting

Requirements

T. C. A. § 8-11-104 (PDF) 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.

Receipts

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.

Tax Collections

Shelby County property tax collections are allocated on a daily basis to three different funds:

• Shelby County General Operating Fund
• Shelby County Debt Service Fund
• Shelby County Schools

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

Schools receives approximately 48.40 percent of every dollar of the Tax Rate Distribution set by the Shelby County Board of Commissioners (using the 2020 Tax Rate). The amount is further allocated based upon the Weighted Full Time Equivalent Average Daily Attendance (WFTEADA) The WFTEADA is calculated by the State of Tennessee Department of Education and certified by the Superintendent of Shelby County Schools. The WFTEADA is certified annually in March or April. Currently all distributions to schools are allocated as follows:

Sales Tax Distributions

Each month the Trustee receives state and local sales tax distributions from the State of Tennessee for sales tax receipted in Shelby County. These funds are distributed to the municipalities within the County, as well as Shelby County, Memphis Redbirds, Memphis Grizzlies, Shelby County Schools and municipal schools. Allocation of sales tax to the school systems is based upon the WFTEADA as mentioned above.