Taxes, Privilege - As introduced, authorizes municipalities to levy a tax on the privilege of engaging in the act of development within the boundaries of the municipality; requires such tax to be levied at the rate and under the terms, conditions, and limitations contained in present law that apply to counties. - Amends TCA Title 67, Chapter 4, Part 29.

HB 2323 allows incorporated cities and towns without school systems (defined as "municipalities" in the bill) to impose a tax on development activity within their boundaries. The tax must follow the same rate, terms, and limitations already set for counties under Tennessee law (sections 67-4-2908 and 67-4-2909). All revenue collected must be used exclusively for capital improvements to transportation infrastructure like roads, streets, sidewalks, and trails within the municipality. This bill amends Tennessee Code Title 67, Chapter 4, Part 29, to authorize this local tax and its specific funding requirements.