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State f/Jeflllessee
PUBLIC CHAPTER NO. 1089
SENATE BILL NO. 1766
By Pody
Substituted for: House Bill No. 1681
By Reeves, McCalmon, Moon, Helton"."Haynes, Wright, Butler, Garringer
AN ACT to amend Tennessee Code Annotated, Title 7; Title 9; Title 12; Title 13; Title 66; Title 67
and Title 68, relative to infrastructure development districts.
BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF TENNESSEE:
SECTION 1. Tennessee Code Annotated, Section 7-84-804, is amended by deleting the
second sentence and substituting:
This part does not affect the operation and effect of chapters 32 and 33 of this title, and parts
1-7 of this chapter, which continue in full force and effect as separate and independent
authority for the establishment and governance of a central business improvement or
infrastructure development district.
SECTION 2. Tennessee Code Annotated, Section 7-84-811, is amended by deleting
subsection (a) and substituting:
(a) Upon the filing of an initiating petition, each governing body of a host municipality
required to receive filing of such petition must order a public hearing by the governing body
to determine whether the infrastructure development district will be established.
SECTION 3. Tennessee Code Annotated, Section 7-84-811, is amended by deleting
subsection (b) and substituting:
(b) Notwithstanding subsection (a), when a district must be approved by two (2) or
more host municipalities, the governing bodies may hold one (1) or more joint public
hearings, or the governing bodies may hold separate public hearings when a governing body
makes approval contingent on the approval of another governing body.
SECTION 4. Tennessee Code Annotated, Section 7-84-814, is amended by deleting
subdivision (7) and substituting:
(7) The maximum rate of levy of the special assessment that may be imposed;
SECTION 5. Tennessee Code Annotated, Section 7-84-815, is amended by deleting
subsection (d) and substituting:
(d) The maximum term of any bonds, notes, or other debt obligations issued pursuant
to this section to fund the costs of infrastructure, including any refinancing bonds, must not
exceed thirty (30) years from the first issuance of bonds, notes, or other debt obligations for
the purpose of funding infrastructure. For development projects with multiple phases of
development, bonds may be issued for each phase of the development and each phase
must not exceed thirty (30) years from date of issuance of the bonds for that phase.
SECTION 6. Tennessee Code Annotated, Section 7-84-817, is amended by deleting
subsection (f) and substituting:
(f) Notwithstanding this part to the contrary, an establishment resolution may provide
that a portion of special assessments be set aside for the actual cost of administrative
SB 1766
expenses, including expenses incurred by the host municipality and the officers of the
municipality, including the assessor of property, trustee, or other tax collecting official, in
administering the collection and allocation of special assessments, including a reasonable
allocation of overhead expenses.
SECTION 7. Tennessee Code Annotated, Section 7-84-827, is amended by deleting the
section and substituting instead:
Each district established pursuant to this part must be dissolved by the governing
bodies of the host municipality no later than thirty (30) years from the date that the last
assessment is first levied, or if earlier, immediately upon one (1) of the following occurring:
(1) Written petition filed by the owners of either seventy-five percent (75%) of
the assessed value of the property in the district, based on the most recent certified
city property tax rolls, or fifty percent (50%) of the owners of record within the district;
provided, that dissolution must not occur prior to the ·payment in full and discharge of
debt obligations secured by special assessment revenues of the district; or
(2) The payment and discharge of all outstanding bonds, notes, or other
obligations payable solely from the special assessment revenues levied on the
property within the district.
SECTION 8. Tennessee Code Annotated, Section 7-84-802(5), is amended by deleting the
subdivision and substituting instead:
(5) "Host municipality" means:
(A) For a district the boundaries of which are not located entirely within a
si·ngle incorporated town or city that:
(i) Levies and directly administers the billing of ad valorem real
property taxes, each county within which the boundaries of the district are
located; or
(ii) Levies, and has authorized and entered into contracts, agreements,
or other arrangements directing the administration of, ad valorem real property
taxes under the applicable provisions of title 6 and any municipal charter, each
county within which the boundaries of the district are located; and
(8) For districts the boundaries of which are located entirely within a single
incorporated town or city that:
(i) Levies and directly administers the billing of ad valorem real
property taxes, such town or city; or
(ii) Levies, and has authorized and entered into contracts, agreements,
or other arrangements directing the administration of, ad valorem real property
taxes under the applicable provisions of title 6 and any municipal charter, such
town or city;
SECTION 9. Tennessee Code Annotated, Section 7-84-820(d), is amended by deleting the
subsection and substituting instead:
(d) A host municipality may:
(1) Manage the administration, in whole or in part, of a district;
(2) Delegate the administration, in whole or in part, of a district to the
municipality currently administering the host municipality's ad valorem real property
taxes. Prior to delegating district administration, in whole or in part, to any municipality
currently administering the host municipality's ad valorem real property taxes, an
interlocal agreement between the host municipality and the municipality must be
approved by the governing bodies of both the host municipality and the municipality;
or
(3) Delegate the administration, in whole or in part, of a district to outside
professional administrators. •
(e) If district administration is delegated, in whole or in part, to an outside professional
administrator, then the host municipality shall. enter into a written contract with such
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SB 1766
administrator. The contract must require all costs associated with administration to be paid
from special assessment revenues from within the district.
(f) As used in this section, "administration" includes:
(1) The collection, remittance, and enforcement of assessments;
(2) Any applicable continuing disclosure requirements;
(3) Any duties related to title transfer of public infrastructure; and
(4) Any other district-related duties deemed necessary by the host
municipality.
(g) The county trustee is not required to participate in district administration without an
agreement between the county trustee and a host municipality regarding the administration
of the infrastructure development district.
(h) Notwithstanding the fee payable to the host municipality, the host municipality
may contract with outside professional administrators, and such costs may be included in the
assessments.
SECTION 10. Tennessee Code Annotated, Section 7-84-822, is amended by deleting
subsections (b) and (c) and substituting instead:
(b) Notwithstanding this part to the contrary, amounts collected by a host municipality
or a municipality that has been delegated administration responsibilities pursuant to § 7-84-
820, must not be allocated to the payment of a special assessment by an owner in the district
until all taxes, penalties, and interest relating to real property taxes imposed by any
governmental entity with the power of taxation, including municipalities and special school
districts, have been paid in full.
(c) The host municipality or a municipality that has been delegated administration
responsibilities pursuant to § 7-84-820, may allocate any payment received by an owner that
is designated to pay special assessments to the payment of taxes, penalties, and interest
until such amounts are paid in full. Otherwise, a host municipality or a municipality that has
been delegated administration responsibilities pursuant to § 7-84-820, shall collect and
enforce special assessments in a district in the same manner as the collection and
enforcement of real property taxes, including the ~uthorization to bill special assessments to
property owners within the district on the same invoice as ad valorem real property taxes.
SECTION 11. Tennessee Code Annotated, Section 7-84-823, is amended by deleting the
section and substitutinginstead:
If any assessment is or becomes delinquent in a district, delinquency proceedings
must be carried out in the same manner as delinquency proceedings for 'ad valorem real
property taxes.
SECTION 12. This act takes effect upon becoming a law, the public welfare requiring it.
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SENATE BILL NO. 1766
PASSED: April 21, 2026
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- -~-~-, RANDY \cNALLY
SPEAKER OF THE SENATE
CAMERONSEXTON,SPEAKER
HOUSE OF REPRESENTATIVES
APPROVED this QQ;.,J day of fV1~ 2026
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BILL LEE, i-"lvERNOREvery fact on this page links to its source, starting with the official bill record.