2023 Tennessee Code › Title 7 - CONSOLIDATED GOVERNMENTS AND LOCAL GOVERNMENTAL FUNCTIONS AND ENTITIES (§§ 7-1-101 — 7-91-104) › SPECIAL DISTRICTS (§§ 7-81-101 — 7-91-104) › Chapter 84 - CENTRAL BUSINESS IMPROVEMENT DISTRICT ACT OF 1971 (§§ 7-84-101 — 7-84-728) › Part 7 - RESIDENTIAL INFRASTRUCTURE DEVELOPMENT ACT OF 2024 (§§ 7-84-701 — 7-84-728) › Section 7-84-718 - Special assessments

(a)
Upon the filing of a petition in the manner required by § 7-84-710 and the adoption of an establishment resolution that satisfies § 7-84-715, each host municipality is authorized to levy special assessments against all properties located within that portion of the infrastructure development district lying within the boundaries of such host municipality. When a portion of an infrastructure development district lies within the boundaries of more than one (1) host municipality, only one (1) of the host municipalities may levy special assessments in the area, and the identification of the host municipality responsible for levying assessments for the area must be identified in the establishing resolution. The proceeds of the special assessments must be applied to the cost of all infrastructure costs and expenses of making public improvements within the district. Such costs and expenses may include:
(1)
Infrastructure costs;
(2)
Administration expenses required in order to comply with the terms of this part, including costs incurred to establish the district, abstracts and other title costs, costs incurred by the host municipality in order to provide for the billing, collection, and enforcement of special assessments, and the reimbursement of the developer or host municipalities for the prior payment of such costs; and
(3)
The payment of the principal, premium, and interest on any bonds, notes, or other debt obligations issued pursuant to this part, and the funding of necessary reserves for debt service, capitalized interest, and costs of issuance related to any such bonds, notes, or other debt obligations issued.
(b)
Any special assessments proceeds in excess of the amounts needed under subsection (a) must be applied to the defeasance or prepayment of any bonds, notes, or other obligations issued as provided in this part.
(c)
(1)
Special assessments must be levied on the basis and in the amount set forth in the establishment resolution. The governing body shall determine the total costs and expenses to be paid from the special assessments, and apportion such costs and expenses upon the various properties located within the district in accordance with the benefits conferred upon the various properties.
(2)
In determining the benefits to each lot or parcel of property within the district, the governing body may consider any of the following factors:
(A)
Frontage;
(B)
Area;
(C)
The proportion that the assessed value of each lot or parcel bears to the whole assessed value of all. properties within the district; or
(D)
A combination of such factors.
(3)
The fact that assessments may be spread uniformly over a large area within the district is not conclusive that such assessment was arbitrarily made.
(d)
Special assessments must be imposed and collected annually.
(e)
Notwithstanding this part to the contrary, an establishment resolution may provide that a total of up to five percent (5%) of special assessments be set aside for administrative expenses, including expenses incurred by the host municipality and the officers of the municipality, including the assessor of property, trustee, or other tax collecting official, in administering the collection and allocation of special assessments, including a reasonable allocation of overhead expenses.
Added by 2024 Tenn. Acts, ch. 860,s 1, eff. 5/1/2024.