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TennesseeSB 1766114th General Assembly (2025-2026)SenateWALLET

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.

Sponsored By: Sponsor information unavailable

Signed by Governor

Regional Authorities and Special Districts

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Bill Overview

Analyzed Economic Effects

4 provisions identified: 0 benefits, 2 costs, 2 mixed.

District assessments can cover administration costs

A district’s setup resolution can reserve assessment money for actual local administrative costs, including reasonable overhead and tax officials’ costs. Host governments can handle district work or delegate it, including collection, enforcement, reporting, and title transfers. Delegation to the government administering the host’s property taxes requires an agreement approved by both governing bodies. Outside professional administrators need written contracts, and all their costs must come from district assessment money. These uses can leave less money for other district purposes.

District owners face property-tax collection rules

Collected payments cannot count toward district assessments until all real property taxes, penalties, and interest owed to taxing governments are paid. A municipality can apply payments marked for assessments to those unpaid tax amounts first. District assessments follow property-tax collection, enforcement, and overdue-payment procedures, and can appear on the same bill. Districts may impose the maximum authorized special-assessment rate; the law does not state a new dollar amount.

District owners gain deadlines for dissolution

Hosts must dissolve districts within 30 years after the last special assessment is first levied. Owners can petition for earlier dissolution with 75% of assessed property value or 50% of owners of record. The value test uses the latest certified city property-tax rolls; petition-based dissolution requires assessment-backed debt to be fully paid and discharged. Dissolution is also required when all obligations payable solely from assessment revenue are paid and discharged. Infrastructure debt, including refinancing, must end within 30 years of first issuance; each development phase has its own issuance-based limit.

Local governments face district setup rules

The law took effect upon becoming law and requires public hearings before infrastructure development districts are established. Districts with multiple host governments use joint or contingent hearings and approvals. A district entirely within one incorporated town or city has that town or city as its host. Otherwise, each county containing the district qualifies; hosts must levy property taxes and handle or arrange their administration. Existing district powers remain separate from other parts of Title 7.

Sponsors & Cosponsors

Sponsors

There is no primary sponsor on record.

Cosponsors

There are no cosponsors for this bill.

Roll Call Votes

All Roll Calls

Yes: 126 • No: 0

House vote • 4/21/2026

FLOOR VOTE: REGULAR CALENDAR PASSAGE ON THIRD CONSIDERATION 4/21/2026

Yes: 85 • No: 0

Senate vote • 3/16/2026

FLOOR VOTE: as Amended Third Consideration 3/16/2026

Yes: 32 • No: 0

Senate vote • 3/10/2026

SENATE STATE & LOCAL GOVERNMENT COMMITTEE

Yes: 9 • No: 0

Actions Timeline

  1. Effective date(s) 05/22/2026

    5/27/2026

  2. Pub. Ch. 1089

    5/27/2026

  3. Signed by Governor.

    5/22/2026Senate

  4. Transmitted to Governor for action.

    5/11/2026Senate

  5. Signed by H. Speaker

    5/7/2026House

  6. Signed by Senate Speaker

    4/30/2026Senate

  7. Enrolled and ready for signatures

    4/29/2026Senate

  8. Passed H., Ayes 85, Nays 0, PNV 0

    4/21/2026House

  9. Am. withdrawn. (Amendment 1 - HA0924)

    4/21/2026House

  10. Subst. for comp. HB.

    4/21/2026House

  11. Rcvd. from S., held on H. desk.

    3/19/2026House

  12. Engrossed; ready for transmission to House

    3/16/2026Senate

  13. Passed Senate as amended, Ayes 32, Nays 0

    3/16/2026Senate

  14. Senate adopted Amendment (Amendment 1 - SA0623)

    3/16/2026Senate

  15. Placed on Senate Regular Calendar for 3/16/2026

    3/13/2026Senate

  16. Recommended for passage with amendment/s, refer to Senate Calendar Committee Ayes 9, Nays 0 PNV 0

    3/10/2026Senate

  17. Placed on Senate State and Local Government Committee calendar for 3/10/2026

    3/3/2026Senate

  18. Passed on Second Consideration, refer to Senate State and Local Government Committee

    1/22/2026Senate

  19. Introduced, Passed on First Consideration

    1/21/2026Senate

  20. Filed for introduction

    1/20/2026Senate

Bill Text

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