Requires county legislative approval for municipal annexation.

HB 365 / SB 1404

Bill Description

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.

Bill Sponsors

Bill Co-Sponsors

None

TLRC Statement on Bill

This bill strengthens private property rights for county residents by requiring county legislative approval before a municipality can take any action that affects the tax obligations, fees, or costs of property owners outside city limits. This ensures that municipalities cannot unilaterally annex unincorporated land or impose financial burdens on county residents without local government oversight.

The legislation protects rural and unincorporated communities from forced annexation and prevents municipalities from expanding their jurisdiction without the consent of county governments and affected residents. It reinforces the principle of local control, ensuring that those impacted by annexation decisions have a voice in the process.

Additionally, the bill requires that joint economic and community development boards be proportionally representative of county populations to ensure that rural and unincorporated communities receive fair representation in economic planning decisions.

By passing this measure, Tennessee upholds property rights, limits government overreach, and ensures that annexation and taxation decisions are made with transparency and local input. This bill provides an essential check on municipal authority and strengthens county residents’ ability to control their own property and finances.

Vote Result:

Failed

TLRC Position:

SUPPORT

Read the Bill