Tennessee House Bill HB2162

Tennessee 2023-2024 Regular Session

• Introduced: 1/25/24
• Refer: 1/31/24

Caption

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

Impact

The amendment would serve to standardize the authority of local governments concerning residential development taxes, ultimately impacting how counties manage revenue related to real estate. While counties that enacted such taxes before the cutoff date in 2006 may continue to do so, any new counties would be restricted from adopting similar measures. This regulatory change could lead to a uniform approach in tax imposition across counties while potentially limiting the financial tools available for local governments to fund public projects.

Summary

House Bill 2162 seeks to amend the Tennessee Code Annotated, specifically focusing on Title 67, Chapter 4, Part 29, which pertains to the County Powers Relief Act. The legislation aims to clarify the conditions under which counties can enact impact fees and real estate transfer taxes on residential developments. Under this bill, no county would be able to impose an impact fee on residential development or a local real estate transfer tax through either private or public act after June 20, 2006. This establishes a framework that restricts local governments' powers concerning certain taxes on residential development, aligning it with prior regulations.

Contention

Debate surrounding HB2162 may center on the implications for local governance and the autonomy of counties to manage their fiscal responsibilities. Opponents might argue that restricting the imposition of impact fees and real estate transfer taxes undermines local control and the ability of communities to address their unique infrastructure needs resulting from residential growth. Proponents of the bill may support it as a means of preventing potential overreach by local governments and maintaining a consistent tax structure throughout the state, but they may face opposition from local officials who see it as a limitation on essential funding mechanisms.