House Bill 2323 and Senate Bill 2610 propose amendments to the Tennessee Code Annotated regarding the privilege tax on property development. The bill introduces a new definition of "Municipality," specifying it as an incorporated city or town without a school system or local education agency (LEA) within its jurisdiction. Additionally, it allows 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 governing body.

The newly established tax must adhere to the rates and conditions outlined in existing sections of the code, and the collected taxes are to be directed to a designated municipal official. The funds generated from this tax are required to be allocated exclusively for capital improvement programs related to transportation infrastructure, such as roads, sidewalks, and trails. Furthermore, municipalities are empowered to create administrative guidelines and procedures to effectively implement and enforce this new tax provision. The act is set to take effect upon becoming law.

Statutes affected:
Introduced: 67-4-2903