HB 608 - SB 1045
FISCAL NOTE
Fiscal Review Committee
Tennessee General Assembly
April 7, 2025
Fiscal Analyst: Justin Billingsley | Email: justin.billingsley@capitol.tn.gov | Phone: 615-741-2564
HB 608 - SB 1045
SUMMARY OF BILL: Prohibits the state or a county or municipal government, in
connection to a development property, from requiring a landowner, developer, or builder to fund,
build, or contribute to the development of: (1) nonessential infrastructure that is not contiguous or
adjacent to a development property of a landowner, developer, or builder; or (2) nonessential
infrastructure beyond the anticipated infrastructure needed for the development property as
estimated at the start of the development of the development property. Specifies that “development
of a property” constitutes any point from the initial planning stage through to the completion of the
development property.
FISCAL IMPACT:
LOCAL GOVERNMENT
EXPENDITURES Mandatory
FY25-26 & Subsequent Years > $1,000,000
Article II, Section 24 of the Tennessee Constitution provides that: no law of general application shall impose increased expenditure
requirements on cities or counties unless the General Assembly shall provide that the state share in the cost.
Assumptions:
• The proposed prohibition applies to development property, or real property that is being
built, improved upon, or developed by a landowner, developer, or builder for the purposes
of developing a property, and applies only to: (1) residential developments under three
hundred single-family homes; and (2) multifamily residences under five hundred units.
• Per the legislation, “nonessential infrastructure” means any infrastructure that is not
required for the creation, ongoing maintenance, and growth of a development property of a
landowner, developer, or builder, and includes property that is not contiguous to the
development property.
• This legislation is estimated to result in a transfer of costs for certain nonessential
infrastructure, which in the absence of this legislation would have been borne by a
developer, now being incurred by the respective local government.
• It is unknown what exact nonessential infrastructure costs would now be incurred by local
governments, but it is considered to include land for schools, the construction of which is
necessitated by the growth in population density in an area directly attributed to a planned
development, as well as other, associated nonessential infrastructure that are not adjacent to
a development, including, but not limited to paving, sidewalks, traffic signals, and traffic
calming measures.
HB 608 - SB 1045 2
• This transfer is estimated to result in a recurring mandatory increase in local expenditures
exceeding $1,000,000 in FY25-26 and subsequent years.
CERTIFICATION:
The information contained herein is true and correct to the best of my knowledge.
Bojan Savic, Executive Director