The University of Tennessee, Knoxville

Tennessee County Municipal Advisory Service

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Non-Refundable Connection Fees

Reference Number: MTAS-1385
Tennessee Code Annotated
Reviewed Date: September 05, 2017
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Instead of deposits cities may want to use nonrefundable connection fees. A deposit is recorded as a liability on the statement of net assets and will need to be accounted for as long as the customer has the service. A non-refundable connection fee is recognized as revenue when it is received, and no records need be maintained to keep track of the payment as with a deposit.