Tennessee legislation · 114th General Assembly
Tennessee SB1760: AN ACT to amend Tennessee Code Annotated, Title 9, Chapter 23 and Title 67, Chapter 5, relative to taxpayer agreements.
Status: Chaptered, May 18, 2026
Fiscal Summary NOT SIGNIFICANT Bill Summary This bill authorizes a tax increment agency to enter into a taxpayer agreement relative to a plan area. The obligation to make payments under such an agreement that guarantees, enhances, or otherwise furthers secure bonds or lease obligations of the tax increment agency, including taxpayer direct payments, must be treated in the same manner as property taxes. However, a tax increment agency must not condition approval of a plan on the execution of a taxpayer agreement. TAXPAYER AGREEMENT AS A SECURITY DEVICE This bill provides that a taxpayer agreement lien is a first and prior lien against the property on which it is imposed, from the date on which the taxpayer agreement is recorded until the lien, including any interest, penalties, or other required costs are paid. A taxpayer agreement lien takes priority over any existing or subsequent mortgage, other lien, or other encumbrance, and may be enforced and collected in all respects as real property taxes. This bill authorizes a taxpayer agreement to include specific requirements related to interest, penalties, and collection and enforcement responsibilities applicable to delinquent taxpayer direct payments, and taxpayer agreement lien enforcement proceedings to ensure the fullest protection of bondholders' interests. This bill also authorizes the taxpayer agreement lien to run with the land. However, any taxpayer direct payments not yet due under the terms of the taxpayer agreement must not be accelerated or eliminated by foreclosure of a property tax lien. A provision of a deed of trust, mortgage, or other agreement between a lienholder and a property owner providing for the acceleration of any payment under the deed of trust, mortgage, or agreement solely as the result of entering into taxpayer agreement is unenforceable. TA
What the bill says
From the amended text:
Senate State and Local Government 1 Amendment No. 1 to SB1760 Briggs Signature of Sponsor AMEND S e n ate Bill No. 1760* House Bill No. 1892 by deleting subsection (a) in the amendatory language of SECTION 2 and substituting: (a) A tax increment agency may enter into a taxpayer agreement relative to a plan area after obtaining a written statement executed by each holder of an existing, previously recorded mortgage or deed of trust on the property securing indebtedness and in which each holder consents to the taxpayer agreement and indicates that the assessment does not constitute an event of default under the existing mortgage or deed of trust. The obligation to make payments under a taxpayer agreement that guarantee, enhance, or otherwise further secure bonds or lease obligations of the tax increment agency under this section, including taxpayer direct payments, must be treated in the same manner as property taxes for purposes of § 67-5-2101. Notwithstanding this section to the contrary, a tax increment agency shall not condition approval of a plan on the execution of a taxpayer agreement. AND FURTHER AMEND by deleting subdivision (b)(2) in the amendatory language of SECTION 2 and substituting: (2) Has parity with real estate tax liens, taking priority over any existing or subsequent mortgage, other lien, or other encumbrance; and AND …