Senate Bill 2610, also known as House Bill 2323, amends Tennessee Code Annotated, Title 67, Chapter 4, Part 29, to introduce new provisions regarding the privilege tax on property development. The bill defines "Municipality" as an incorporated city or town that lacks a school system or local education agency (LEA) within its jurisdiction. It allows such municipalities to levy a tax on the privilege of engaging in development activities within their boundaries, provided that the tax is adopted through an ordinance by the municipality's governing body.

The newly established tax must adhere to the rates and conditions outlined in existing sections of the law, specifically 67-4-2908 and 67-4-2909. Collected taxes are to be remitted to a designated municipal official and allocated to a fund for capital improvement projects focused on transportation infrastructure, including roads, sidewalks, and trails. Additionally, municipalities are empowered to create administrative guidelines and regulations necessary for the implementation and enforcement of this tax provision. The act is set to take effect upon becoming law.

Statutes affected:
Introduced: 67-4-2903