Bill > SB2646

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 lessees to taxing jurisdictions instead of regular property taxes, particularly for tax-credit housing projects. The bill clarifies that corporations can negotiate PILOTs with lessees without direct municipal delegation under certain conditions, especially if the payments are not less than previous taxes or if local chief executives support the project. However, if PILOTs are less than what would normally be paid, or if the corporation is negotiating PILOTs based on a delegation of authority from a municipality, it must notify affected taxing jurisdictions, and those jurisdictions may require approval from their legislative bodies before the agreement can proceed. Additionally, the bill requires prior written approval from county mayors and legislative bodies for payments in lieu of ad valorem taxes.