Bill > HB1878

This bill revises laws concerning industrial development corporations in Tennessee by allowing their boards of directors to initiate mergers with other corporations, following procedures for public benefit corporations. It also modifies rules regarding payments in lieu of taxes (PILOTs), which are payments made by a project instead of property taxes. Specifically, the bill allows corporations to negotiate PILOTs directly with lessees for tax-credit housing projects under certain conditions, such as ensuring payments meet or exceed previous tax amounts or obtaining support from local government officials. Additionally, it clarifies that corporations generally need formal authorization from the municipality that created them to negotiate or waive PILOTs, and if these payments are less than what would normally be owed, the corporation must notify affected taxing jurisdictions, which then have the option to approve or reject the agreement. Finally, it requires prior written approval from county mayors and legislative bodies for payments in lieu of ad valorem taxes.