Private Acts of 1987 Chapter 118

Tennessee Code Annotated
Tennessee Attorney General Opinions

WHEREAS, Williamson County, Tennessee, has been the fastest growing county in the state for the past fifteen (15) years, having been impacted by the rapid growth in the standard metropolitan area of Nashville; and

WHEREAS, anticipated continued growth from the expansion of Nashville is expected to accelerate due to the location of the hub of American Airlines in the Nashville area, and from other factors; and

WHEREAS, after an intense national competition, the state of Tennessee successfully negotiated with the General Motors Corporation to locate its Saturn plant in Tennessee; and

WHEREAS, General Motors Corporation selected and is presently constructing the Saturn automotive assembly plant in an unincorporated area of Maury County just south of the Williamson County line at Spring Hill; and

WHEREAS, the investment in said plant is anticipated to be approximately $3.5 billion when the plant is complete; and

WHEREAS, Maury County has negotiated a Payment in Lieu of Tax (PILOT) Agreement with General Motors whereby the Saturn plant will make payments in lieu of property tax in the amount of $43.430 million over the next fifteen (15) years, but Williamson County, lying within a few miles of the plant has no such agreement, and will receive no such benefit; and

WHEREAS, the Saturn plant is anticipated to stimulate commercial, office, industrial and warehouse development in Williamson County in the vicinity of the Saturn plant as well as in the cities of Franklin, Brentwood and Fairview, all lying within Williamson County; and

WHEREAS, the projected non-residential development and the availability of jobs is anticipated to stimulate a significant demand for new dwelling units in Williamson County; and WHEREAS, current projections show that:

(1) County population will be 129,000 persons in year 2005, an increase of 122% from 1980 to 2005; there will be a demand for approximately 22,000 additional dwelling units between 1980 and 2005; and new residential and non-residential development will consume an additional 14,000 acres of land in Williamson County;

(2) projected growth and land use development will cause a demand for county provided capital facilities (schools, roads, jails, parks, county government facilities, etc.) in an amount well in excess of $50 million over the next fifteen (15) years;

(3) the county's present revenue raising authority is limited and relies heavily on intergovernmental transfers which are not subject to county control and on property taxes, which would impose the costs of new growth on existing residents rather than on new residents and businesses who create the demand for the additional expenditures; and

WHEREAS, Williamson County is committed to both present and future county residents to maintaining a level of public facilities and services commensurate with those presently provided; and

WHEREAS, Williamson County is prepared to impose a fair, equitable and reasonable share of the costs of providing the necessary public facilities and services on existing residents of the county; and

WHEREAS, the county's present population employment base, tax base and budget cannot alone support the additional revenues needed to supply facilities to serve new growth without a substantial increase in the property tax rate on existing development; and

WHEREAS, the introduction of the Saturn plant in Maury County, the American Airlines Hub in Davidson County, and the continued expansion of the Nashville Metropolitan area represent both an extraordinary economic opportunity for the state of Tennessee as well as a potential economic burden on the existing residents of Williamson County; and

WHEREAS, due to these unique circumstances, it is necessary and appropriate that Williamson County be given authorization to extend its taxing power to enable the county to impose a fair and reasonable share of the costs of public facilities necessitated by new development on that development so as not to create an unfair and inequitable burden on existing county residents; and

WHEREAS, there is precedent in the state of Tennessee for such additional tax measures to impose costs on those who benefit from improvements and where the result would otherwise be to impose an unfair burden on existing residents; and

WHEREAS, the most logical and effective mechanism to accomplish the intended result would be the imposition of a new privilege tax on new development in Williamson County; now, therefore,

SECTION 1. This Act shall be known and cited as the Williamson County Adequate Facilities Tax.

SECTION 2. As used in this Act, unless a different meaning appears from the context:

(a) "Board of Adjustments and Appeals" means the board established in Williamson County pursuant to the requirements of the Southern Standard Building Code Congress.

(b) "Building" means any structure built for the support shelter, or enclosure of persons, chattels, or movable property of any kind; the term includes a mobile home. This will not pertain to buildings used for agricultural purposes.

(c) "Building Permit" means a permit for development issued in Williamson County, whether by the county or by any city therein.

(d) "Capital Improvement Program" means a proposed schedule of future projects, listed in order of construction priority, together with cost estimates and the anticipated means of financing each project. All major projects requiring the expenditure of public funds, over and above the annual local government operating expenses, for the purchase, construction, or replacement of the physical assets of the community are included.

(e) "Certificate of Occupancy" means a license for occupancy of a building or structure issued in Williamson County, whether by the county or by any city therein.

(f) "Development" means the construction, building, reconstruction, erection, extension, betterment, or improvement of land providing a building or structure or the addition to any building or structure, or any part thereof, which provides, adds to or increases the floor area of a residential or nonresidential use.

(g) "Dwelling Unit" means a room, or rooms connected together constituting a separate, independent housekeeping establishment for owner occupancy, rental or lease on a daily, weekly, monthly, or longer basis; physically separated from any other room(s) or dwelling units which may be in the same structure; and containing independent cooking and sleeping facilities.

(h) (1) "Floor Area" for non-residential development means the total of the gross horizontal area of all floors, including usable basements and cellars, below the roof and within the outer surface of the main walls of principal or accessory buildings or the center lines of party walls separating such buildings or portions thereof, or within lines drawn parallel to and two (2) feet within the roof line of any building or portions thereof without walls, but excluding arcades, porticoes, and similar open areas which are accessible to the general public, and which are not designed or used as sales, display, storage, service, or production areas.

(2) "Floor Area" for residential development means the total of the gross horizontal area of all floors, including basements, cellars, or attics which is heated and/or air-conditioned living space, or designed to be finished into heated and/or air-conditioned living space at a future date.

(i) "General Plan" means the official statement of the planning commission which sets forth major policies concerning future development of the jurisdictional area and meeting the provisions set forth in Tennessee Code Annotated, Sections 13-3-301, 13-3-302, and 13-4-102. For purposes of this Act only, a general plan may consist solely of the land development plan element which sets out a plan or scheme of future land usage.

(j) "Governing Body" means the county commission of Williamson County, Tennessee.

(k) "Major Street or Road Plan" means the plan adopted by the planning commission, pursuant to Tennessee Code Annotated, Sections 13-3-402 and 13-4- 302, showing, among other things, "the general location, character, and extent of public ways (and) the removal, relocation, extension, widening, narrowing, vacating, abandonment or change of use of existing public ways...".

(l) "Non-Residential" means the development of any property for any use other than residential use, except as may be exempted by this Act.

(m) "Person" means any individual, firm, co-partnership, joint venture, association, corporation, estate, trust, business trust, receiver, syndicate, or other group or combination acting as a unit, and the plural as well as the singular number.

(n) "Place of Worship" means that portion of a building, owned by a religious institution which has tax-exempt status, which is used for worship services and related functions; provided, however, that a place of worship does not include buildings or portions of buildings which are used for purposes other than for worship and related functions or which are or are intended to be leased, rented or used by persons who do not have tax-exempt status.

(o) "Public Buildings" means a building owned by the state of Tennessee or any agency thereof, a political subdivision of the state of Tennessee, including but not necessarily limited to counties, cities, school districts and special districts, or the federal government or any agency thereof.

(p) "Public Facility or Facilities" means a physical improvement undertaken by the county or city, including, but not limited to the following: roads and bridges, parks and recreational facilities, jails and law enforcement facilities, schools, libraries, government buildings, fire stations, sanitary landfills, water, wastewater and drainage projects, airport facilities and other governmental capital improvements benefiting the citizens of the county and/or city.

(q) "Residential" means the development of any property for a dwelling unit or units.

(r) "Subdivision Regulations" means the regulations adopted by the Williamson County regional planning commission pursuant to state statutory authorization on December 19, 1985, as amended, by which the county regulates the subdivision of land.

(s) "Zoning Resolution" means the resolution adopted by the governing body pursuant to state statutory authorization on April 18, 1988, as amended, by which the county regulates the zoning, use and development of property

As amended by:	Private Acts of 1989, Chapter 22
	Private Acts of 1990, Chapter 173

SECTION 3. It is the intent and purpose of this Act to authorize Williamson County to impose a tax on new development in the county payable at the time of issuance of a building permit or certificate of occupancy so as to ensure and require that the persons responsible for new development share in the burdens of growth by paying their fair share for the cost of new and expanded public facilities made necessary by such development.

SECTION 4. Engaging in the act of development within Williamson County, except as provided in Section 6 herein, is declared to be a privilege upon which Williamson County may, by resolution of the governing body, levy a tax in an amount not to exceed the rate set forth in Section 7.

SECTION 5. The governing body shall impose the tax authorized herein by resolution after adopting a capital improvements program indicating the need for the cost of public facilities anticipated to be funded, in part, by this tax and after finding that the need for such public facilities is reasonably related to new development in the county. The resolution of the governing body imposing this tax shall state the rate of tax on new residential and non-residential development. The governing body shall, by resolution, adopt administrative guidelines, procedures, regulations and forms necessary to properly implement, administer and enforce the provisions of this Act.

SECTION 6. This Act shall not apply to development of:

(a) Public buildings.

(b) Places of worship.

(d) Replacement structures for previously existing structures destroyed by fire or other disaster.

(e) Additions to a single-family dwelling.

(f) A structure owned by a non-profit corporation which is a qualified 501(c)3 corporation under the Internal Revenue Code.

(g) Permanent residential structures replacing mobile homes where the mobile home is removed within thirty (30) days of the issuance of the certificate of occupancy for the permanent residential structure provided that the permanent structure is a residence for the owner and occupant of the mobile home and that owner and occupant has resided on the property for a period of not less than three (3) years.

(h) Buildings moved from one site within the County to another site within the County.

As amended by:

Private Acts of 1989, Chapter 22

SECTION 7. For the exercise of the privilege described herein, Williamson County may impose a tax on new development not to exceed

(a) one dollar ($1.00) per gross square foot of new residential development.

(b) two dollars ($2.00) per gross square foot of new non-residential development.

The county may develop a tax rate schedule by which residential and nonresidential uses are classified by type for the purpose of imposition of the tax authorized herein.

SECTION 8. The tax established in this act shall be collected at the time of application for a building permit for development as herein defined by a county official duly authorized by the County Executive. If the building permit is issued by the County, the County Building Official or other responsible official shall receive payment in full in cash or other negotiable instrument as specified by resolution of the County and as approved by the County Attorney. If the building permit is issued by a city, the city shall, before issuance of the building permit, require evidence by a valid certificate executed by the County Building Inspector that the full amount of the tax due the County has been paid. No County unless the tax has been paid in full to the county or a negotiable instrument approved by the County Attorney and payable to the County has been received. The issuance of a building permit by any city official, without a certificate from the County that the tax has been paid shall render the city liable to the County for the sum or sums that would have been collected by the County, had the certificate of tax paid been required by the City.

As amended by:

Private Acts of 1989, Chapter 22.

SECTION 9. All tax funds collected shall be used for the purpose of providing public facilities, the need for which is reasonably related to new development.

SECTION 10. The authority to impose this privilege tax on new development in Williamson County is in addition to all other authority to impose taxes, fees, assessments, or other revenue raising or land development regulatory measures granted either by the private or public acts of the state of Tennessee and the imposition of such tax, in addition to any other authorized tax, fee, assessment or charge, shall not be deemed to constitute double taxation.

SECTION 11. Appeals. Any person aggrieved by the decision of the county building official or other responsible official concerning any aspect of this act may obtain review of the official's decision in the following manner:

(1) By payment of the disputed amount to Williamson County and by notifying the official that the payment is made under protest.

(2) By requesting an appeal of the decision of the official in written form within\ ten (10) days of the protest and payment. Appeals shall be heard by the Williamson County Board of Adjustment and Appeals. Hearing shall be scheduled within forty-five (45) days of the written request for appeal. The board of adjustment and appeals shall render a decision on all hearings within thirty (30) days of the hearing date, unless the hearing is continued from time to time by a majority vote of the board for further information.

The board of adjustment and appeals shall act as a quasi-judicial body whose purpose is to determine the intent of this act, its applicability to the appellant, and to rule upon the interpretation of the official.

The board will not be bound by formal rules of evidence applicable to the various courts of the state.

Hearings before the board shall proceed as follows:

(1) The building official shall explain his ruling and the reasons for his ruling.

(2) The appellant shall explain his reasons for protesting the ruling.

(3) The board may request further information from any county official, including, but not limited to the county executive, county commissioners, or committee members, the county attorney, or the county planning staff. The board will not have the power of subpoena.

(4) The board will deliberate and render a decision by a majority vote. Decisions will be reduced to writing and copies shall be sent to all parties and shall become a part of the minutes of the board. Decisions of the board of adjustment and appeals shall be final, except that either the building official, or the person aggrieved may seek review of the board's actions by certiorari and supersedeas to the Chancery Court of Williamson County, Tennessee, provided that an application to the court is made within sixty (60) days of the written decision of the board.

As amended by: