Shown verbatim: the complete text as captured from the official PDF posted by the Tennessee General Assembly, fetched 2026-09-25. Page and line markers are part of the official record; nothing is edited or removed. This is the chaptered version. The official bill page.
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State f/Jenn&Ssee
PUBLIC CHAPTER NO. 820
SENATE BILL NO. 1398
By Watson
Substituted for: House Bill No. 890
By Todd, Russell
AN ACT to amend Tennessee Code Annotated, Title 48 and Title 67, relative to real property taxes.
BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF TENNESSEE:
SECTION 1. Tennessee Code Annotated, Section 48-101-312(b), is amended by deleting
subdivisions (1) and (2) and substituting instead:
(1)(A) The municipality may delegate to a corporation the authority to negotiate and
enter into payments in lieu of ad valorem taxes with a corporation's lessees; provided,
that such authorization must only be granted upon a finding that such payments are
deemed to be in furtherance of the corporation's public purposes as defined in this
subsection (b). The legislative body of the municipality making such delegation may,
in its sole discretion, require the corporation to submit any such agreement to the
legislative body for its approval.
(8) Further, if the proposed agreement would result in payments in lieu of
taxes being made to any taxing jurisdiction that are less than the taxes that otherwise
would be payable to such jurisdiction, then the corporation shall not enter into any
such agreement until the corporation has given written notice of such agreement to
the chief executive officer of each such taxing jurisdiction. Upon receipt of such
notice, the chief executive officer may either:
(i) Notify the corporation that the agreement must be submitted to the
legislative body of that taxing jurisdiction for approval or disapproval; or
(ii) Notify the corporation that the chief executive officer does not
object to the proposed agreement.
(C) If the chief executive officer does not provide a notification to the
corporation within ten (10) days of receipt of the notice from the corporation pursuant
to subdivision (b)(1 )(8), then the corporation may proceed to enter into the proposed
agreement.
(D) If the chief executive officer requires that the agreement be submitted to
the legislative body of the taxing jurisdiction, then the corporation shall not enter into
the agreement unless the agreement is approved by such legislative body.
(2) If the project is located within the corporate limits of a municipality, the payments
must be apportioned between the municipality and the county in the same manner as ad
valorem taxes are apportioned on the date of execution of the agreement for payments in
lieu of taxes. However, any agreement entered into on or after July 1, 2026, without
complying with subdivision (b)(1}, is void and unenforceable.
SECTION 2. This act takes effect upon becoming a law, the public welfare requiring it.
SENATE BILL NO. 1398
PASSED: April 9, 2026
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RANDYN~
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SPEAKER OF THE SENATE
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- ,fQN, SPEAKER
HOUSE OF REPRESENTATIVES
APPROVED this :J:]l::L day of Ax:,'j 2026
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