AN ACT to amend Tennessee Code Annotated, Title 48 and Title 67, relative to real property taxes.

Description

Fiscal Summary NOT SIGNIFICANT Bill Summary ON APRIL 6, 2026, THE SENATE ADOPTED AMENDMENT #1 AND PASSED SENATE BILL 1398, AS AMENDED. AMENDMENT #1 rewrites this bill to add to present law concerning delegations of municipal authority to a special purpose corporation for purposes of entering into payment in lieu of taxes (PILOT) agreements with the corporation's lessees. Present law authorizes a municipality to delegate to a special purpose corporation the authority to negotiate and enter into PILOT agreements with the corporation's lessees; provided, that such authorization must only be granted upon a finding that such payments are deemed to be in furtherance of the corporation's public purposes. The legislative body of the municipality making such delegation may, in its sole discretion, require the corporation to submit any such agreement to the legislative body for its approval. This amendment adds that, if the proposed agreement would result in PILOT payments being made to any taxing jurisdiction that are less than the taxes that otherwise would be payable to such jurisdiction, then the corporation shall not enter into any such agreement until the corporation has given written notice of such agreement to the chief executive officer of each such taxing jurisdiction. Upon receipt of such notice, the chief executive officer may either: (1) Notify the corporation that the agreement must be submitted to the legislative body of that taxing jurisdiction for approval or disapproval; or (2) Notify the corporation that the chief executive officer does not object to the proposed agreement. If the chief executive officer does not provide a notification to the corporation within 10 days of receipt of the notice, then the corporation may proceed to enter into the proposed agreement. If the chief executive officer

Subjects

Progress

1. IntroducedFeb 4, 2025
2. Sent to committeeMar 4, 2026