Municipal Government - As introduced, prohibits a municipality, or an instrumentality of a municipality, from taking an action that affects or has the potential to affect the tax obligations, fees, or other costs for real property owners whose property is located outside of a municipality's corporate boundary, unless the action is approved by the county legislative body in which such property is located; requires the membership of joint economic and community development boards to proportionately represent the citizenry over which the board exercises jurisdiction by July 1, 2029. - Amends TCA Title 5 and Title 6.

HB 365 prohibits Tennessee municipalities (or their agencies) from changing tax obligations, fees, or costs for real property owners whose land lies outside city limits without prior approval from the county legislative body where the property is located. It also requires joint economic development boards to proportionally represent the population of all jurisdictions they serve by July 1, 2029, with specific transition rules to achieve this. The bill amends Tennessee law to ensure county oversight of municipal actions affecting out-of-boundary property owners and mandates equitable board membership based on population. Key mechanisms include requiring county approval for tax-related municipal actions and establishing a phased approach for board representation adjustments. This directly affects rural property owners, municipalities, and county governments in Tennessee.