Tennessee legislation · 114th General Assembly
Tennessee HB1681: 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.
Status: Chaptered, May 27, 2026
Fiscal Summary OTHER FISCAL IMPACT Due to multiple unknown variables, any permissive impacts to local government cannot be reasonably quantified; however, this legislation may result in additional bond issuances by infrastructure development districts statewide and corresponding payments on bond principal and interest. Bill Summary Present law provides independent authority for the establishment and governance of an infrastructure development district. This bill clarifies that such independent authority does not affect the operation of other parts of the law that provide a separate independent authority for the establishment and governance of a central business improvement or infrastructure development district. PUBLIC HEARINGS Present law allows governing bodies of host municipalities to hold a joint public hearing upon receiving the filing of a petition initiating the creation of an infrastructure development district. This bill clarifies that the municipalities may hold separate public hearings when a governing body makes approval contingent on the approval of another governing body. ESTABLISHMENT RESOLUTION Present law provides the requirements for what must be contained with an establishment resolution adopted by the governing body of the municipalities. This bill eliminates the requirement that the establishing resolution contain the maximum rate of levy of the special assessment that may be imposed. Present law authorizes host municipalities who have adopted an establishment resolution for an infrastructure development district to levy special assessments against all properties located within that portion of the infrastructure development district lying within the boundaries of such host municipality. This bill allows an establishment resolution to provide that a portion of special assessments be set aside
What the bill says
From the amended text:
House State & Local Government 1 Amendment No. 1 to HB1681 Crawford Signature of Sponsor AMEND S e n ate Bill No. 1766 House Bill No. 1681* by deleting Section 7 and substituting instead: 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. AND FURTHER AMEND by inserting the following new sections immediately preceding the last section and renumbering the subsequent section accordingly: SECTION 8. Tennessee Code Annotated, Section 7-84-802(5), is …