Tennessee Senate Bill SB2266

Tennessee 2023-2024 Regular Session

• Introduced: 1/30/24

Caption

AN ACT to amend Tennessee Code Annotated, Title 67, Chapter 4, Part 29, relative to the County Powers Relief Act.

Summary

Senate Bill 2266 seeks to amend the Tennessee Code Annotated, specifically Title 67, Chapter 4, Part 29, which is known as the County Powers Relief Act. The primary intent of this bill is to restrict counties from enacting impact fees on residential development or implementing local real estate transfer taxes. This move is aimed at standardizing the regulatory framework regarding residential development fees across the state, thereby enhancing predictability for developers and local governments alike. The bill clarifies that local governments may only adopt new or additional taxes on residential development as defined by this act, ensuring a uniform approach to taxation at the county level. The primary implication of SB2266 is the limitation it places on local governments' ability to raise revenue through specific types of taxation related to residential development. Under the stipulations of this bill, any such taxation must align with what is permitted by the County Powers Relief Act, effectively barring any impact fees that were enacted after June 20, 2006. This legislative change is positioned to streamline the development process and prevent discrepancies among counties in the application of development taxes. However, the bill is not without its points of contention. Advocates argue that removing the ability of counties to enact their own impact fees can lead to a more business-friendly environment, making it easier for developers to navigate the complexities of local taxation. Critics, on the other hand, may view this as an undue restriction on local governance, arguing that it undermines local control and may hinder a community’s ability to generate revenue for necessary public services associated with new development, such as schools or infrastructure. As the bill moves through the legislative process, its impact on local governance and its reception among different stakeholders—including local governments and community members—will likely continue to spark debate. The balance between state regulations and local autonomy remains a critical point for legislators, making SB2266 a significant marker of legislative intent regarding county taxation powers.