Overview:  Back to Top
The Finance Department functions include cashiering operations, cash management, city court, property tax administration, purchasing & personnel functions, special billings & collections, and debt issuance & administration. The Finance Department manages all City bank accounts including the investment of available cash. The investment policy of the City is to minimize credit and market risks while maintaining a competitive yield on its portfolio.

Property-related Tax Information:Back to Top
The City of Tullahoma receives revenue from a number of different sources with property-related taxes being the largest single source of revenue. The City is in two counties: Coffee and Franklin Counties. These values are provided to the City through the appropriate County Tax Assessor and the City applies levy rates to determine the tax amount.

Financial Reporting:Back to Top

The Finance Department provides monthly financial reports to the Board of Mayor and Aldermen with a detailed quarterly report being provided when appropriate. This department coordinates financial information for all departments and divisions within the City, and assists in the preparation of the Comprehensive Annual Financial Report, which has consistently received the GFOA "Certificate of Excellence for Financial Reporting." In addition, debt service payments are initiated by this department.

The Finance Department, under the direction of the City Administrator, prepares the annual budget for the City of Tullahoma and for submission to GFOA for review for the Budget Award, which the City received for the first time in 1998 for the FY1999 Budget.

Payroll:Back to Top
The Finance Department ensures that the bi-weekly payroll for approximately 200 City employees is issued on time. In addition to customary deductions of Federal taxes, the Finance Department provides other deduction services. The Department is also responsible for preparing and submitting all payroll related reports.

Purchasing:Back to Top
The Purchasing Officer reports to the Director of Finance and Administration. The Purchasing function includes bid openings, maintenance of purchase order, vendor contracts, and related accounts receivable, maintenance of fixed assets inventory and database, determination and auction of surplus equipment, and the fuel distribution process for city vehicles.

Administrative Services:Back to Top
The Finance Department provides support services to other Departments and Divisions.

Real Estate (Property Taxes)Back to Top
Assessment Procedure: Every person owning or holding real property or tangible personal property on January 1 of any calendar year shall be liable for taxes, with exemptions for certain properties. All taxable real and personal property within the City is assessed annually by the County Assessor. Tennessee law requires that property be assessed at the following percentages of true value:

Personal property 30%
Residential real property 25%
Agricultural real property 25%
Utility, railroad, etc. 30%
Commercial and Industrial 40%

Tax Collection Procedure: Personal property and real estate taxes, other than for railroads and utilities, are expected to be billed by the Finance Department on October 1. Property taxes are due and payable on October 1 and delinquent on March 1. On March 1 all delinquent taxes begin accruing penalty and interest. Property taxes that have been delinquent for over a year are turned over to the City Attorney on February 1 and tax suits are filed.

Tax Rates: The property tax rate for the City of Tullahoma in Coffee and Franklin Counties is $2.44 and $2.44 per $100 of assessed value.

Tax Relief: As provided in State law qualified elderly property owners and certain combat-related disabled veterans are entitled to have a portion of their property taxes paid through a state program called "property tax relief". Qualifications to participate in this program are available through the Finance Director's Office.

CITY COURTBack to Top
The City of Tullahoma conducts City Court at the Municipal Building on the second and fourth Tuesday of each month at 2:30 p.m. The City Court hears traffic offenses and violations of city ordinances.

BUSINESS LICENSEBack to Top
Persons operating a business in the City of Tullahoma must comply with State and City regulations relative to business license. Businesses are placed in one of four classifications as established by state regulations. A business must:

• fill out an application for a business license. The application will be reviewed for approval within forty eight (48) hours by the Finance Department and the Code Enforcement Department.

• applicant will, upon approval, pay the minimum tax of $20.00 and will be issued a business license. The initial license period may not be for a complete year based on state classifications and license periods.

• at expiration of the license a renewal form will be mailed to the business. The business must report their gross sales for the license period and based on the applicable percentage pay any amount over the minimum $20.00.

A business should file a final return within twenty (20) days of closing or selling to another person or corporation.