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.

SB 2610 allows qualifying Tennessee municipalities (incorporated cities or towns without school systems) to impose a tax on development activity within their boundaries. The tax must follow the same rates and rules currently applied to counties for development privilege taxes. Proceeds from this tax must be used exclusively for transportation infrastructure projects like roads, streets, sidewalks, and trails within the municipality. Municipalities would need to adopt a local ordinance to implement the tax, and funds would be managed through designated municipal funds.