67-4-724 - Distribution of taxes Retention by state in general fund of taxes, interest and penalties assessed due to audit.
67-4-724. Distribution of taxes Retention by state in general fund of taxes, interest and penalties assessed due to audit.
(a) Except as otherwise provided in this section, all taxes collected by the commissioner under this part, including any associated interest and penalties, together with all amounts remitted to the department under § 67-4-710, shall be distributed as follows:
(1) An amount equal to seven dollars ($7.00) per return shall be paid to the county clerk with respect to each tax return filed under § 67-4-715 by a taxpayer located within the county. Of that amount, two dollars ($2.00) shall be earmarked for computer hardware purchases or replacement, but may be used for other usual and necessary computer-related expenses at the discretion of the county clerk. The amount shall be preserved for these purposes and shall not revert to the general fund at the end of a budget year if unexpended.
(2) An amount equal to seven dollars ($7.00) per return shall be paid to the appropriate city official with respect to each tax return filed under § 67-4-715 by a taxpayer located within the city.
(3) After the distributions provided in subdivisions (a)(1) and (2), an amount equal to five percent (5%) of the remaining proceeds of the tax collected by the commissioner shall be paid to the county clerk, in the case of taxes levied under this part by a county, and the appropriate city official, in the case of taxes levied under this part by a municipality.
(4) After the distributions provided in subdivisions (a)(1)-(3), fifty-seven percent (57%) of the remaining proceeds of the tax collected by the commissioner under this part, less a reasonable administration fee as set forth in § 67-6-710(b)(2), shall be distributed to the county or municipality that levied the tax under this part and forty-three percent (43%) shall be retained by the state and shall be earmarked and allocated specifically and exclusively to the state's general fund.
(b) Notwithstanding subsection (a), one hundred percent (100%) of the amount of any tax, interest, and penalty assessed by the commissioner as a result of an audit of the taxpayer's books and records shall be retained by the state and shall be earmarked and allocated specifically and exclusively to the state's general fund.
[Acts 1972, ch. 850, §§ 15-18; 1978, ch. 714, §§ 2, 3; 1980, ch. 885, § 16; T.C.A., §§ 67-5823 67-5826; Acts 1984, ch. 832, §§ 32, 33; 1988, ch. 526, § 34; 1989, ch. 340, § 1; 2002, ch. 856, § 9d; 2009, ch. 530, § 92.]