Tennessee House Bill HB2244

Tennessee 2023-2024 Regular Session

• Introduced: 1/29/24
• Refer: 3/11/24
• Refer: 3/20/24
• Refer: 3/26/24
• Refer: 4/3/24
• Refer: 4/9/24
• Engrossed: 4/16/24
• Enrolled: 4/22/24
• Passed: 5/3/24
• Chaptered: 5/13/24

Caption

AN ACT to amend Tennessee Code Annotated, Title 5; Title 6; Title 7; Title 9 and Title 67, relative to relative to local governments.

Impact

The implications of HB 2244 are significant for local municipalities looking to enhance their commercial and residential developments. By enabling local governments to impose taxes within these large-scale development projects more flexibly, the bill aims to attract substantial investments. This could lead to increased job creation and economic revitalization in areas designated for tourism. However, the limitations on tax rates (not exceeding 5% for any business class) and the requirement for a two-thirds vote from the municipal legislative body or a majority voter approval for new or modified taxes are also noteworthy, reflecting an effort to balance local autonomy with fiscal responsibility.

Summary

House Bill 2244 aims to amend various sections of the Tennessee Code Annotated relating to local governments, specifically in the context of mixed-use developments and associated privilege taxes. The bill outlines provisions for a mixed-use development that includes a sports facility with ten or more fields, targeting areas designated as tourism development zones and requiring a substantial capital investment threshold of $500 million. This initiative seeks to streamline the process for municipalities to levy, modify, or repeal privilege taxes connected to businesses within such developments, fostering economic activity and urban growth.

Sentiment

The sentiment regarding HB 2244 appears generally supportive among local government officials and developers. Proponents argue that the bill promotes economic growth, facilitates the construction of large projects that can significantly benefit local economies, and provides necessary funding avenues through privilege taxes. Nonetheless, there are concerns from certain groups about the potential implications of increased taxation on local businesses and the equitable distribution of benefits from such developments, raising questions about the governance of local economies under the new provisions.

Contention

Notable points of contention surrounding HB 2244 may arise from the provisions that require municipal legislative bodies to approve changes to the privilege tax structure by supermajority vote or through public referendums. These requirements could create barriers for municipalities in responding quickly to economic opportunities or community needs. Additionally, the emphasis on large mixed-use projects might lead to criticisms that such developments favor big investments at the expense of smaller local businesses and community-driven initiatives.