Senate Bill 1760 and House Bill 1892 propose amendments to the Tennessee Code Annotated regarding taxpayer agreements related to tax increment agencies. The bill introduces new definitions, including "taxpayer agreement," which is a contract that allows property owners to secure bonds or lease obligations of a tax increment agency, and "taxpayer agreement lien," which is treated similarly to property taxes once recorded. The bill also outlines the obligations of tax increment agencies in relation to taxpayer agreements, stating that these agreements cannot be a condition for plan approval and detailing the enforcement of taxpayer agreement liens.

An amendment to the bill specifies that a tax increment agency must obtain written consent from existing mortgage holders before entering into a taxpayer agreement. Additionally, the amendment clarifies that taxpayer agreement liens will have parity with real estate tax liens, ensuring they take priority over other encumbrances. The bill also mandates that the tax increment agency notify the county trustee of the requirements related to taxpayer agreements, including the involvement of a third-party bond trustee for compliance in lien enforcement proceedings. The act will take effect upon becoming law and applies to agreements entered into or amended after that date.

Statutes affected:
Introduced: 9-23-102
Amended with HA0795 -- 04/02/2026: 9-23-102