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SB 2480

Public Funds and Financing - As introduced, enacts the "Greenbelt Initiative Fund Transfer (GIFT) Act," which creates the rural revenue equity fund; authorizes the commissioner of economic and community development to distribute amounts from the fund to rural counties based on certain agricultural, demographic, and fiscal criteria, including greenbelt acreage. - Amends TCA Title 4; Title 5; Title 6; Title 7; Title 9 and Title 67.

114th Regular Session (2025-2026) Introduced by Janice Bowling

The act creates the Rural Revenue Equity Fund with a $210 million annual appropriation to support rural counties for capital, infrastructure, safety, emergency services, and tax st

Placed on Senate Finance, Ways, and Means Committee calendar for 4/21/2026
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Bill Summary · SB 2480

Summary of Bill: Greenbelt Initiative Fund Transfer (GIFT) Act (SB 2480 / HB 2375)

Jurisdiction: Tennessee | Session: 114 | Title: Public Funds and Financing

Purpose and intent

  • Establishes the Greenbelt Initiative Fund Transfer (GIFT) Act.
  • Creates the Rural Revenue Equity Fund (the “Fund”) within the state general fund.
  • Recurring annual appropriation of $210 million to the Fund (beginning in FY26-27) to be used for distributing state resources to rural counties.
  • Aims to support rural counties through capital improvements, infrastructure, public safety, emergency services, and property tax stabilization, with priority given to counties with larger greenbelt land classifications.

Key provisions and changes

Creation and administration

  • Establishes the Rural Revenue Equity Fund in the General Fund and designates the Tennessee Commissioner of Economic and Community Development (ECD) to administer the Fund.
  • Funds deposited into the Fund must be used only to administer and implement the section’s purposes.

Funding and use

  • Annual appropriation of $210,000,000 to the Fund, starting in FY26-27.
  • Eligible uses by rural counties:
    • Capital improvement projects
    • Infrastructure projects
    • Law enforcement purposes
    • Firefighter and emergency medical services
    • Property tax stabilization

Eligibility and application process

  • Rural counties must submit an application to ECD, together with an application fee (amount determined by the department). Application fees are deposited into the Fund to defray ECD’s admin costs.
  • The department will develop the application, procedures, and scoring criteria.

Scoring and allocation

  • Counties are evaluated and scored using categories with assigned weights. The highest scores receive larger allocations.
  • Scoring categories (each with a 0–100 point potential, then multiplied by a weighting factor):
    • Total acres of land under greenbelt classification (weight 0.25)
    • Annual agricultural sales or taxable agricultural receipts (weight 0.20)
    • Percentage of total county land under greenbelt classification (weight 0.15)
    • Lacks statutory authority to levy development taxes or impact fees (weight 0.15)
    • Number and economic output of licensed livestock or dairy farms (weight 0.10)
    • County population (weight 0.08)
    • Adopted property tax increase in the prior five fiscal years (weight 0.07)
  • A higher score is given to counties with more land in greenbelt, higher agricultural activity, smaller populations, and/or prior property tax increases.
  • Priority: counties with more than 70% of land under greenbelt classification receive higher scoring emphasis.

Private and public funds

  • The department may accept gifts or grants to the Fund from private or public sources. Any such funds are to be deposited and expended in accordance with the section.

Investment and carry-forward

  • The State Treasurer shall invest Fund moneys consistent with existing law, and interest remains in the Fund.
  • Unencumbered or unexpended Fund balances carry forward each year; funds are not revertible to the General Fund or other public funds.

Reporting and oversight

  • Annual report detailing expenditures and program activity must be submitted by the ECD to:
    • Governor
    • Speakers and clerks of both chambers
    • Chairs of relevant Finance, Ways, and Means committees
    • Directors of the Office of Legislative Budget Analysis

Definitions

  • Greenbelt classification: land classified as agricultural, forest, or open space under TCA Title 67, Chapter 5, Part 10.
  • Infrastructure: includes public utilities, water/sewer, drainage, roads, bridges, transit, pedestrian/bicycle facilities, rail, gas/electric lines, telecom, solid waste disposal, etc.
  • Rural county: a county not part of a metropolitan statistical area (MSA) as defined by the U.S. OMB.

Who is affected

  • Rural counties in Tennessee that are not within MSAs (approximately 51 counties identified as rural per fiscal notes) become eligible to apply for Fund allocations.
  • Entities responsible for administering and administering the Fund:
    • Tennessee Department of Economic and Community Development (ECD)
    • Tennessee Department of Agriculture (DOA) may provide data collaboration
    • State Treasurer (investment of Fund assets)
  • Local governments in rural counties may benefit from funding for capital improvements, infrastructure, law enforcement, emergency services, and property tax stabilization.

Procedural and timeline aspects

  • Effective date: Upon becoming law.
  • Fiscal year impact begins FY26-27 with a one-time General Fund appropriation of $210,000,000 to the Fund.
  • Ongoing annual appropriation of $210,000,000 to the Fund in subsequent years (subject to appropriation).
  • Administrative costs estimated to require one additional Project Coordinator position starting FY26-27.
    • Recurring cost for Project Coordinator: approximately $120,511 (salary, benefits, and operational costs) beginning FY26-27.
  • Annual reporting requirements begin with the first fiscal year of Fund activity and continue thereafter.

Fiscal impact (summary)

  • State government
    • Revenue: General Fund incurs a recurring $210,000,000 annual appropriation to the Rural Revenue Equity Fund (FY26-27 and thereafter).
    • Expenditures: Estimated recurring Fund administration costs of about $120,511 per year plus program expenditures to rural counties.
  • Other fiscal considerations:
    • Application fees to cover ECD administration costs are variable.
    • The total amount distributed to counties depends on applications received and the weighted scores, making annual allocations and total distributions not precisely forecastable.

Note: The fiscal analysis indicates the need for one additional project coordinator and ongoing administrative costs; also notes variability in annual fund distributions based on applications.

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

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