Senate Bill 1760, also known as House Bill 1892, amends the Tennessee Code Annotated to introduce new definitions and provisions related to taxpayer agreements within tax increment financing. The bill defines "taxpayer agreement" as a contract where property owners in a designated plan area agree to secure bonds or lease obligations of a tax increment agency. It also establishes the concept of a "taxpayer agreement lien," which is treated similarly to property taxes and takes precedence over other liens. Additionally, the bill outlines the obligations of tax increment agencies regarding taxpayer agreements, including the requirement to notify the county trustee of specific terms related to delinquent payments and lien enforcement.

The legislation specifies that taxpayer agreements cannot be a condition for plan approval and that any lien associated with these agreements runs with the land, ensuring that taxpayer direct payments are not accelerated or eliminated due to foreclosure. Furthermore, it prohibits the enforcement of any provision in a deed of trust or mortgage that accelerates payments solely due to the execution of a taxpayer agreement. The bill mandates that taxpayer agreements be recorded with the county register of deeds, detailing the property description, owners, lien term, and the executed agreement. This act will take effect upon becoming law and applies to agreements entered into or amended after that date.

Statutes affected:
Introduced: 9-23-102