WeVote
Log In

Bill

Bill

HB 388

Municipal Government - As introduced, extends indefinitely the time frame, by deleting the June 30, 2028, termination date, that a municipality that continues to receive an allocation of state sales tax revenue pursuant to the now-repealed Courthouse Square Revitalization Pilot Project Act of 2005, will continue to receive the allocation of the revenue. - Amends TCA Title 6 and Title 67, Chapter 6.

114th Regular Session (2025-2026) Introduced by Ed Butler

Removes expiration date for permanent state sales tax revenue allocations to municipalities from the now-repealed Courthouse Square Revitalization Pilot Project.

Transmitted to Governor for his action.
#municipalgovernment
0
WeVote Research Nonpartisan
Bill Summary · HB 388

Legislative bill overview

HB 388 removes the June 30, 2028 expiration date for municipalities receiving state sales tax revenue allocations under the now-repealed Courthouse Square Revitalization Pilot Project Act of 2005, making these allocations permanent. The bill amends Tennessee Code Annotated Titles 6 and 67 to effectuate this change.

Why is this important

Municipalities currently benefiting from this revenue stream face budget uncertainty without this extension, as their allocated funds would cease in 2028. Making the allocation indefinite provides fiscal stability for local governments to plan long-term budgets and ongoing projects, though it also represents a permanent commitment of state revenue to specific municipalities.

Potential points of contention

  • Permanent revenue commitment: Converts a time-limited pilot program into indefinite state funding, reducing legislative flexibility to redirect these sales tax revenues to other state priorities or needs
  • Equity concerns: Benefits only municipalities that participated in the original pilot program, potentially disadvantaging other localities seeking revitalization funding or state revenue allocations
  • Lack of accountability mechanisms: No mention of performance metrics or conditions to ensure municipalities continue using funds for their intended revitalization purposes, or accountability for how revenues are spent

Compiled from official sources — confirm details with the bill’s official record.

Sign in to ask a question.