Tennessee 2025-2026 Regular Session

Tennessee Senate Bill SB0754 Compare Versions

Only one version of the bill is available at this time.

Old	New	Differences
1	1
2	2	HOUSE BILL 79
3	3	By Keisling
4	4
5	5	SENATE BILL 754
6	6	By Yager
7	7
8	8
9	9	SB0754
10	10	001081
11	11	- 1 -
12	12
13	13	AN ACT to amend Tennessee Code Annotated, Title 6 and
14	14	Title 67, Chapter 6, relative to courthouse square
15	15	revitalization.
16	16
17	17	BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF TENNESSEE:
18	18	SECTION 1. Tennessee Code Annotated, Title 6, is amended by adding the following
19	19	as a new chapter:
20	20	6-59-101. Short title.
21	21	This chapter is known and may be cited as the "Courthouse Square
22	22	Revitalization Act."
23	23	6-59-102. Definitions.
24	24	As used in this chapter, unless the context otherwise requires:
25	25	(1) "Courthouse square revitalization zone" or "revitalization zone" means
26	26	an area in a municipality officially designated by ordinance or resolution of the
27	27	municipality as the courthouse square revitalization zone, in which the county's
28	28	courthouse is located, that is approved and certified by the department of finance
29	29	and administration as meeting the requirements of this chapter; and
30	30	(2) "Municipality" means an incorporated town or city that is the county
31	31	seat of a county having a population of not more than thirty thousand (30,000),
32	32	according to the 2020 federal census or any subsequent federal census.
33	33	6-59-103. Designation of courthouse square revitalization zones.
34	34	(a) The governing body of a municipality may designate the boundaries of a
35	35	courthouse square revitalization zone by adoption of an ordinance or resolution.
36	36
37	37
38	38	- 2 - 001081
39	39
40	40	(b) Sales and use tax revenue must be apportioned and distributed to, in
41	41	accordance with this chapter, a municipality containing a revitalization zone, in an
42	42	amount equal to the amount of state tax revenue derived under title 67, chapter 6, from
43	43	sales or use of goods, products, and services within the revitalization zone; provided,
44	44	that the allocations, apportionments, and payments set forth in this subsection (b) shall
45	45	not apply to state tax revenue derived from any area added to a courthouse square
46	46	revitalization zone by amendment of the boundaries of the revitalization zone by the
47	47	municipality after the approval of the municipality's application by the department of
48	48	finance and administration, unless the department has determined, in accordance with
49	49	this chapter, that the area added to the revitalization zone is appropriate. The amount
50	50	so distributed to the municipality must be used exclusively for maintaining and improving
51	51	the viability of the courthouse square through any means deemed appropriate by the
52	52	governing body of the municipality, including, but not limited to, making loans or grants
53	53	to the county governing body or any other public or private person, entity, or association
54	54	for use on infrastructure, marketing, and other purposes related to revitalization.
55	55	6-59-104. Application of approval and certification.
56	56	(a) To be entitled to receive the allocations of state sales and use tax revenue as
57	57	provided in this chapter, a municipality must first file with the department of finance and
58	58	administration an application seeking approval and certification of the proposed
59	59	courthouse square revitalization zone. The department shall review the application to
60	60	confirm that the courthouse square revitalization zone meets the size and form
61	61	requirements of this chapter. A revitalization zone may embrace two (2) or more
62	62	separate parcels of real property, and such property may be publicly or privately owned.
63	63	Each revitalization zone must be of such size and form as to include all properties that,
64	64	in the judgment of the municipality and the department of finance and administration,
65	65
66	66
67	67	- 3 - 001081
68	68
69	69	constitute an integral part of the courthouse square. If the department determines that
70	70	the boundaries of the proposed courthouse square revitalization zone exceed the area
71	71	that is reasonably deemed to be integral to the courthouse square, then the department
72	72	may adjust or reduce the boundaries of the proposed area. In reviewing the application,
73	73	the department of finance and administration shall consult with the department of
74	74	revenue and the department of economic and community development.
75	75	(b) The application must include, but not be limited to, the following information:
76	76	(1) The name of the proposed courthouse square revitalization zone,
77	77	which must include the name of the municipality in which the revitalization zone
78	78	is to be located, together with the words, "courthouse square revitalization zone";
79	79	(2) A description of the revitalization zone by metes and bounds;
80	80	(3) A map showing the parcels of real property included in the
81	81	revitalization zone and the present use of such parcels; and
82	82	(4) Such other information as may be reasonably requested by the
83	83	department of finance and administration.
84	84	(c) The department of finance and administration shall set an application
85	85	deadline.
86	86	(d) Upon expiration of the application deadline, the commissioner of finance and
87	87	administration, in consultation with the commissioner of revenue and the comptroller of
88	88	the treasury, shall review and evaluate all completed applications and select one (1) or
89	89	more as an approved courthouse square revitalization project. A maximum of six (6)
90	90	projects may be selected for the courthouse square revitalization project; provided, that
91	91	no more than two (2) projects may be selected from each grand division.
92	92	6-59-105. Apportionment and payment of tax revenues.
93	93
94	94
95	95	- 4 - 001081
96	96
97	97	After selection of the courthouse square revitalization projects, as provided in §
98	98	6-59-104(d), the department of revenue shall apportion and pay the tax revenue, as
99	99	provided in this chapter, to the municipality within ninety (90) days of the end of each
100	100	fiscal year for which the municipality is entitled to receive an allocation and payment of
101	101	the tax revenue.
102	102	6-59-106. Rules.
103	103	The department of revenue and the department of finance and administration are
104	104	authorized to promulgate rules in accordance with the Uniform Administrative
105	105	Procedures Act, compiled in title 4, chapter 5, to implement this chapter.
106	106	SECTION 2. Tennessee Code Annotated, Section 67-6-103(h), is amended by deleting
107	107	the subsection and substituting instead the following:
108	108	(1) Notwithstanding this section to the contrary, revenue derived from state taxes
109	109	imposed by this chapter must be earmarked and allocated in accordance with the
110	110	Courthouse Square Revitalization Act, compiled in title 6, chapter 59.
111	111	(2) Notwithstanding a repeal of the Courthouse Square Revitalization Pilot
112	112	Project Act of 2005, previously compiled in title 6, chapter 59, any municipality receiving
113	113	an allocation of state sales tax revenue on June 1, 2015, pursuant to the Courthouse
114	114	Square Revitalization Pilot Project Act of 2005, must continue to receive the allocation of
115	115	revenue. The allocation must equal the amount of revenue derived from the state tax
116	116	imposed by this chapter on the sale or use of goods, products, and services within the
117	117	courthouse square revitalization zone. For purposes of this subdivision (h)(2),
118	118	"courthouse square revitalization zone" has the same meaning provided in § 6-59-102
119	119	as it existed in the Courthouse Square Revitalization Pilot Project Act of 2005 on June 1,
120	120	2015, and consists of the area that is included within such revitalization zone on June 1,
121	121	2015.
122	122
123	123
124	124	- 5 - 001081
125	125
126	126	(3) No portion of the revenue derived from the increase in the rate of sales and
127	127	use tax allocated to educational purposes, pursuant to chapter 529, § 9 of the Public
128	128	Acts of 1992, and no portion of the revenue derived from the increase in the rate of sales
129	129	and use tax from six percent (6%) to seven percent (7%), pursuant to chapter 856, § 4 of
130	130	the Public Acts of 2002 shall be apportioned and distributed pursuant to this subsection
131	131	(h). All such revenue must continue to be allocated as provided in chapter 529 of the
132	132	Public Acts of 1992, and chapter 856 of the Public Acts of 2002.
133	133	SECTION 3. The headings in this act are for reference purposes only and do not
134	134	constitute a part of the law enacted by this act. However, the Tennessee Code Commission is
135	135	requested to include the headings in any compilation or publication containing this act.
136	136	SECTION 4. This act takes effect July 1, 2025, the public welfare requiring it.