Annexation

Plain English Breakdown

Checked against official source text during the last sync.

Annexation Requirements for Tennessee

This bill changes how municipalities can annex land by adding new rules about financial studies and county approval.

What This Bill Does

• Requires a municipality to submit a financial impact study when it wants to annex land.
• Municipalities must also provide a statement showing they can pay for services in the annexed area.
• The county legislative body must approve annexation by voting, and has at least 60 days to review and decide.
• If the county does not vote within 90 days, the annexation is denied.
• Doesn't apply if a single lot of five acres or less is being annexed.

Who It Names or Affects

• Municipalities that want to annex land
• County legislative bodies reviewing annexation requests

Terms To Know

Annexation

The process of adding new territory to an existing city or town.

Financial impact study

A report that shows how annexing land will affect the money and resources needed for things like roads, schools, and services.

Limits and Unknowns

• The bill does not apply to single lots of five acres or less.
• It's hard to know exactly how much this will cost local governments because it depends on future events that are unpredictable.

Official Summary Text

Before
adopting an annexation ordinance,
this bill requires a
municipality
to s
ubmit to the county legislative body in which the territory proposed for annexation is located

(
i
)
a
financial impact study, detailing the short-term and long-term effects on county infrastructure, public services, schools, and county taxpayers; and

(
ii
)
a
statement of financial viability, demonstrating the municipality's capacity to provide services to the annexed area, including water, sewer, roads, police, fire, and other obl
igations
. Additionally, the municipality must obtain
approval of such annexation by majority vote of the county legislative body.
However, this bill
does not apply to the annexation of a single, contiguous lot of five acres or less
, and does not
preempt any interlocal agreements or growth plans
.

This bill provides that t
he county legislative body has at least
60
calendar days to review the documentation and vote on the proposed annexation.

A county legislative body's failure to act within
60
days does not constitute approval.

If a county legislative body has not approved the annexation within
90
days of the submission
,
then the annexation is deemed denied.

This bill requires the
comptroller of the treasury
to
prescribe the form and content of the financial impact study and statement of financial viability
.

Current Bill Text

HOUSE BILL 2419
By Fritts

SENATE BILL 2311
By Hensley
SB2311
012280
- 1 -

AN ACT to amend Tennessee Code Annotated, Title 6,
Chapter 51, Part 1, relative to annexation.

WHEREAS, annexation of property by municipalities can impose significant costs on
county governments and residents; and
WHEREAS, counties must have the authority to review the fiscal impacts of annexation
proposals; and
WHEREAS, cooperation between municipalities and counties is essential to protect
taxpayers and promote sustainable growth across Tennessee; now, therefore,
BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF TENNESSEE:
SECTION 1. Tennessee Code Annotated, Title 6, Chapter 51, Part 1, is amended by
adding the following as a new section:
(a) Before adopting an annexation ordinance, a municipality shall:
(1) Submit to the county legislative body in which the territory proposed
for annexation is located:
(A) A financial impact study, detailing the short-term and long-
term effects on county infrastructure, public services, including schools,
and county taxpayers; and
(B) A statement of financial viability, demonstrating the
municipality's capacity to provide services to the annexed area, including
water, sewer, roads, police, fire, and other obligations; and
(2) Obtain approval of such annexation by majority vote of the county
legislative body.
(b)

- 2 - 012280

(1) The county legislative body has at least sixty (60) calendar days to
review the documentation and vote on the proposed annexation.
(2) A county legislative body's failure to act within sixty (60) days does
not constitute approval.
(3) If a county legislative body has not approved the annexation within
ninety (90) days of the submission pursuant to subsection (a), then the
annexation is deemed denied.
(c) This section does not apply to the annexation of a single, contiguous lot of
five (5) acres or less.
(d) The comptroller of the treasury shall prescribe the form and content of the
financial impact study and statement of financial viability required under subdivision
(a)(1).
(e) This section does not preempt any interlocal agreements or growth plans
established pursuant to chapter 58 of this title.
SECTION 2. This act takes effect upon becoming a law, the public welfare requiring it.