State and Local Government

HB 1720 would allow counties with fewer than 341,500 residents (per the 2020 census) to pass a resolution prohibiting municipalities or regional planning groups from controlling land use, development, or infrastructure rules outside city boundaries. If a county adopts such a resolution, any existing zoning plans or ordinances by cities or regional groups that extend beyond municipal limits would become unenforceable. The bill requires counties to pass this resolution via majority vote of their legislative body and allows for temporary agreements to handle ongoing projects. It does not apply to metropolitan counties or prevent counties and cities from making cooperative agreements for lawful purposes.

HB 2328 would allow Tipton County to participate in the Neighborhood Preservation Act and the Tennessee Local Land Bank Program by adjusting state law to include counties with a population between 60,900 and 61,000 (based on the 2020 census). The bill amends Tennessee Code Sections 13-6-105 and 13-30-103 to add Tipton County’s specific population range as qualifying for these programs. This change directly affects Tipton County, enabling it to access state resources for neighborhood preservation and land bank initiatives. The bill does not alter the programs themselves but expands eligibility to Tipton County based on its census population. It remains under review by the State & Local Government Committee as of March 2026.

HB 1516 creates a process to prevent budget impasses between city governments and local school systems (LEAs) in Tennessee. If a city council and school board fail to agree on a budget by August 31, the previous year’s budget (meeting minimum state funding requirements) automatically continues. For municipal operations, if a city council misses the fiscal year start deadline, the prior year’s budget continues until a new one is adopted, with strict limits allowing only a three-month extension (with comptroller approval) for extraordinary circumstances. The bill directly affects all Tennessee municipalities with school systems and aims to ensure uninterrupted funding for schools and city services during budget negotiations.

HB 2402 requires Tennessee local government chief executives (like mayors or county commissioners) to order all flags at public buildings to fly at half-mast for at least one day whenever a first responder from their local emergency management agency dies in the line of duty. This bill amends Tennessee law to establish this mandatory flag protocol for such deaths, directly affecting all local governments with emergency management agencies. The key provision specifies that the half-mast display must occur for a minimum of one full day following the death of a qualifying first responder. The bill focuses solely on this ceremonial recognition, with no other policy changes or funding provisions.

HB 753 establishes new rules for taxing multi-unit rental properties (4+ units) that receive federal, state, or local incentives tied to low-income renter restrictions. It requires property assessors to value these properties using specific methods, including adjusting market value based on rent ratios and excluding tax credits, while applying a capitalization rate 50-150 basis points above standard rates. Owners must notify assessors about restrictions by December 31 each year, or face tax penalties. The law takes effect for tax year 2026 and applies to properties developed on or after that date.