Requires local governments to obtain county approval and provide reports for annexations.

This bill amends Tennessee’s annexation statutes to give counties a formal role in approving municipal annexations that directly impact county taxpayers and county-funded services. Before a city may adopt an annexation ordinance, it must submit to the county legislative body a detailed financial impact study outlining short- and long-term effects on county infrastructure, schools, and taxpayers, along with a statement of financial viability demonstrating the city’s capacity to provide services such as water, sewer, roads, police, and fire protection.

The county legislative body is given at least 60 days to review the proposal and vote. If approval is not granted within 90 days, the annexation is deemed denied. Small contiguous tracts of five acres or less are exempt, and existing growth plans and inter-local agreements remain unchanged.

By requiring county approval, the bill ensures that annexation decisions account for real fiscal impacts and prevents long-term costs from being shifted onto county governments and existing taxpayers without their consent. The bill also directs the Comptroller of the Treasury to standardize financial disclosures, and it makes clear that inaction by a county does not result in automatic approval.

Supporters argue this approach promotes responsible, cooperative growth that pays for itself, while preserving local accountability. Counties across Tennessee have expressed support for these reforms, including through resolutions adopted by multiple county commissions and a unanimous vote by the Tennessee County Commissioners Association.