Tennessee Senate Bill SB0145

Tennessee 2025-2026 Regular Session

• Introduced: 1/14/25

Caption

AN ACT to amend Tennessee Code Annotated, Title 6 and Title 67, Chapter 6, relative to courthouse square revitalization.

Summary

SB 145 amends Tennessee’s courthouse square revitalization tax provisions in Title 67. The bill removes the current sunset date of June 30, 2028, for the courthouse square revitalization zone program and replaces the statutory definition of the zone with a fixed reference to the area that was included in the zone on June 1, 2015. In practical terms, the bill preserves the existing program and locks in the geographic boundaries as they existed on that date. The measure appears intended to maintain continuity for local revitalization efforts in designated courthouse square areas by preventing the program from expiring and by limiting future changes to the zone’s footprint. Because the bill amends tax-related provisions, it affects the administration of state tax incentives or exemptions tied to courthouse square revitalization zones and the local governments, property owners, and businesses operating within those areas.

Impact

The bill changes Tennessee Code Annotated, Section 67-6-103(h)(2), by eliminating the June 30, 2028 expiration date and by redefining the courthouse square revitalization zone to the area included on June 1, 2015. This extends the life of the statutory program indefinitely unless changed again by future legislation and prevents expansion or contraction of the zone beyond the 2015 boundaries. The main affected parties are municipalities, downtown redevelopment stakeholders, property owners, and businesses located in or near courthouse square revitalization zones that benefit from the associated tax treatment.

Sentiment

The available voting history shows strong support for the bill. It was recommended for passage unanimously in the Senate State & Local Government Committee and again unanimously in the Senate Finance, Ways and Means Committee, including an amendment in the latter committee. No committee opposition or recorded dissent appears in the provided materials, suggesting the bill was viewed favorably as a continuation of an existing local revitalization policy.

Contention

No major controversy is evident in the provided record. The only potentially notable policy issue is that the bill makes the courthouse square revitalization zone permanent by removing the sunset date and freezes the zone’s boundaries as of June 1, 2015, which could limit future adjustments to the program. However, the unanimous committee votes indicate that any concerns about fiscal impact, program scope, or local control were not significant enough to generate recorded opposition.