What is considered the enforceable legal claim date for property taxes in Tennessee?
Recently there has been some confusion regarding when the enforceable legal claim arises to the taxable property in Tennessee. We have consulted with GASB and they have indicated that the date of the enforceable legal claim may be interpreted differently by each individual state. Tennessee interprets this date to be the lien date of January 1. (Tennessee Code Annotated 67-5-2101) • How should property taxes be accounted for in the government-wide financial statements? Asset Governments should recognize assets from imposed nonexchange revenue transactions in the period when an enforceable legal claim to the assets arises or when the resources are received, whichever occurs first. For property taxes, the date when an enforceable legal claim to the taxable property arises generally is specified in the enabling legislation (e.g., lien date). (Codification of Governmental Accounting and Financial Reporting Standards, Section N50.114) Municipalities should record a receivable and related def
