This bill enacts the "Courthouse Square Revitalization Act," which authorizes the governing body of a municipality to designate the boundaries of a courthouse square revitalization zone ("revitalization zone") by adoption of an ordinance or resolution. "Municipality" ("municipality") means an incorporated town or city that is the county seat of a county having a population of not more than 30,000, including all towns and cities in this state except Bartlett, Brentwood, Chattanooga, Clarksville, Cleveland, Collierville, Columbia, Cookeville, Franklin, Gallatin, Germantown, Hendersonville, Jackson, Johnson City, Kingsport, Knoxville, La Vergne, Lebanon, Maryville, Memphis, Morristown, Mount Juliet, Murfreesboro, Nashville-metro, Oak Ridge, Smyrna, and Spring Hill. This bill requires sales and use tax revenue to be apportioned and distributed to the municipality containing the revitalization zone in an amount equal to the amount of state tax revenue derived from the sale or use of goods, products, and services within the revitalization zone. However, the allocations, apportionments, and payments must not apply to state tax revenue derived from any area added to the revitalization zone by amendment of the boundaries of the revitalization zone after the approval of the municipality's application by the department of finance and administration, unless the department has determined that the area added to the revitalization zone is appropriate. This bill requires the amount distributed to the municipality to be used exclusively for maintaining and improving the viability of the courthouse square through any means deemed appropriate by the governing body of the municipality, including making loans or grants to the county governing body or any other public or private person, entity, or association for use on infrastructure, marketing, and other purposes related to revitalization. APPLICATION OF APPROVAL AND CERTIFICATION In order to receive the revenue allocations described above, this bill requires a municipality to first file with the department of finance and administration an application seeking approval and certification of the proposed revitalization zone. The department is required to set an application deadline and review the application to confirm that the revitalization zone meets the size and form requirements. Each revitalization zone must be of such size and form as to include all properties that constitute an integral part of the courthouse square. If the department determines that the boundaries of the proposed revitalization zone exceed the area that is reasonably deemed to be integral to the courthouse square, then the department may adjust or reduce the boundaries of the proposed area. Under this bill, the department of finance and administration must consult with the department of revenue and the department of economic and community development in reviewing the application. After the application deadline has expired, the commissioner of finance and administration, commissioner of revenue, and comptroller of the treasury must review and evaluate all completed applications and select one or more as an approved courthouse square revitalization project. This bill authorizes a maximum of six projects to be selected, with no more than two projects being authorized from each grand division. The application must include (i) the name of the proposed courthouse square revitalization zone.; (ii) a description of the revitalization zone by metes and bounds; (iii) a map showing the parcels of real property included in the revitalization zone and the present use of such parcels; and (iv) such other information as may be reasonably requested by the department of finance and administration. APPORTIONMENT AND PAYMENT This bill requires the department of revenue to apportion and pay the tax revenue to the municipality within 90 days of the end of each fiscal year for which the municipality is entitled to receive an allocation and payment of the tax revenue, after the revitalization projects have been selected. REVITALIZATION PILOT PROJECT ACT OF 2005 Under present law, any municipality receiving an allocation of state sales tax revenue on June 1, 2015, pursuant to the Courthouse Square Revitalization Pilot Project Act of 2005, must continue to receive the allocation of the revenue until June 30, 2028. This bill removes the end date of June 30, 2028, thereby making this project permanent.

Statutes affected:
Introduced: 67-6-103(h), 67-6-103