Senate Bill 1760 amends Tennessee law to establish a framework for "taxpayer agreements" related to tax increment agencies. The bill defines key terms such as "taxpayer agreement," which is a contract that allows property owners in a designated plan area to secure bonds or lease obligations of a tax increment agency. It also introduces the concept of a "taxpayer agreement lien," which is treated similarly to property taxes once recorded, and outlines the process for taxpayer direct payments, which are the differences between debt service payments and actual tax increment revenues generated.

Additionally, the bill stipulates that tax increment agencies can enter into taxpayer agreements but cannot condition plan approval on these agreements. It establishes that taxpayer agreement liens take precedence over other encumbrances and can be enforced like property taxes. The bill also includes provisions for notification to county trustees regarding the requirements of taxpayer agreements and ensures that any direct payments due under these agreements are not accelerated or eliminated by foreclosure actions. The act will take effect upon becoming law and applies to agreements made after that date.

Statutes affected:
Introduced: 9-23-102