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SENATE BILL 2200
By Taylor
HOUSE BILL 2182
By White
HB2182
012557
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AN ACT to amend Tennessee Code Annotated, Title 4,
Chapter 3; Title 4, Chapter 49; Section 9-16-101;
Title 54, Chapter 4; Title 55, Chapter 4; Title 57,
Chapter 5, Part 2; Title 57, Chapter 3, Part 3 and
Title 67, relative to allocations to counties and
municipalities.
BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF TENNESSEE:
SECTION 1. Tennessee Code Annotated, Section 67-6-103(a)(3)(G), is amended by
adding the following language at the end of the subdivision:
In any year in which the revised population certification results in a reduction of the
allocation of moneys to a county or municipality compared to the prior year's allocation,
the department of revenue shall implement the reduction incrementally. The department
shall limit the reduction in the first year of population loss or stagnation to twenty percent
(20%) of the total projected loss resulting from the population decrease. In each
subsequent, consecutive year of population loss or stagnation, the department shall
increase the implemented reduction by an additional twenty percent (20%) of the then-
current projected loss, until the allocation aligns fully with the certified population. If a
jurisdiction's population increases during this period, then the department shall
recalculate the base loss and adjust the phase-in accordingly.
SECTION 2. Tennessee Code Annotated, Section 4-3-710, is amended by adding the
following as a new subsection (d):
(d) To ensure fiscal stability for local governments, the department of revenue
and the department of finance and administration shall implement a transition period for
any county or municipality experiencing a decrease in population-based funding due to
the annual certifications required by this section. Such transition must limit the reduction
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in distributed funds to twenty percent (20%) of the total year-over-year decrease in the
first year of the loss, forty percent (40%) in the second year, and continue in twenty
percent-increments until the distribution is commensurate with the certified population.
SECTION 3. Tennessee Code Annotated, Section 67-1-119, is amended by adding the
following language at the end of the section:
The department of revenue shall apply a mitigation factor to any reduction in funding
resulting from revised population certifications under § 4-3-710. The mitigation factor
must ensure that no county or municipality realizes more than twenty percent (20%) of
its total annual population-based revenue loss in the first year of such loss, with the
remaining loss phased in over the subsequent four (4) years.
SECTION 4. This act takes effect July 1, 2026, the public welfare requiring it.