Amends TCA Title 67, Chapter 4, Part 29.

This bill makes various revisions, as described below, to the "County Powers Relief Act," which authorizes counties to levy a privilege tax on persons and entities engaged in the residential development of property, in order to provide a county with an additional source of funding to defray the cost of providing school facilities to meet the needs of the citizens of the county as a result of population growth.<br /> <br /> Present law provides that a county may impose a tax based on the floor area of a residential development. However, a county is limited in initially levying such tax at a rate not to exceed $1.00 per square foot on a residential property. Present law also imposes the following limitations:<br /> <br /> (1) A county that has levied such tax or has increased the rate of such tax may not levy an additional tax on the development nor increase the rate of the tax for a period of four years from either the effective date of the tax or the rate increase; and <br /> <br /> (2) The county legislative body may increase the rate of the tax after a four-year period from the date the county initially levies the tax or from the date of the last tax on the development so long as the increase does not exceed 10 percent.<br /> <br /> This bill increases the initial tax rate limitation from not exceeding $1.00 per square foot to not exceeding $3.00 per square foot. However, this bill retains the other limitations described above.<br /> <br /> This bill also removes the following provisions of present law:<br /> <br /> (1) A county is prohibited from authorizing an impact fee on development or a local real estate transfer tax by private or public act after June 20, 2006;<br /> <br /> (2) The "County Powers Relief Act" is the exclusive authority for local governments to adopt new or additional adequate facilities taxes on development, but the Act is not to be construed to prevent a municipality or county from exercising authority to levy or collect similar development taxes or impact fees granted by a private act that was in effect prior to June 20, 2006, or from revising the dedicated use and purpose of a tax on new development from public facilities to public school facilities; and<br /> <br /> (3) A county levying a development tax or impact fee by private act on June 20, 2006, is prohibited from using the authority provided in the Act so long as the private act is in effect.<br />