2015 Tennessee Code
Title 9 - Public Finances
Chapter 23 - Uniformity in Tax Increment Financing Act of 2012
§ 9-23-103 - Division of property taxes levied upon property located within area subject to plan.

(a) Notwithstanding any tax increment statute to the contrary, the property taxes levied upon property located within the area subject to a plan shall be divided as follows:

(1) Base taxes and dedicated taxes shall be allocated to and shall be paid, as provided in this chapter, to the respective taxing agencies as taxes levied by such taxing agencies on all other property are paid; provided, that in any year in which the taxes on any property are less than the base and dedicated taxes, there shall be allocated and paid to the respective taxing agencies only those taxes actually imposed and collected; and provided further, that, in any year or years in which the base tax would be diminished solely due to a rate reduction under title 67, chapter 5, part 17, the base tax shall nevertheless be established at the amount originally determined; and

(2) Subject to specific constraints in this chapter, any excess of taxes levied by a participating tax agency, over the base and dedicated taxes, shall be allocated to and shall be paid to the tax increment agency as provided in the relevant tax increment statute to be applied or reserved for the purposes permitted by such statute and this chapter; provided, that:

(A) A portion of the excess taxes may be allocated for administrative purposes as provided in this part; and

(B) Excess taxes beyond amounts necessary to fund or reserve for eligible expenditures under the applicable tax increment statute, may be applied to principal and interest of debt incurred to finance such eligible expenditures, or shall revert to the taxing agency general fund.

(b) Notwithstanding subsection (a) or the tax increment statutes to the contrary, any plan may allocate an amount greater than the base and dedicated taxes to any taxing agency that levied the taxes.

(c) If the area subject to a plan has, at any time, multiple parcels of property, a plan may provide that the base and dedicated taxes shall be calculated on an aggregate basis or on the basis of each parcel within the area subject to the plan. If such amounts are calculated on an aggregate basis, a taxing agency shall not be required to allocate any payments of tax increment revenues to the tax increment agency until the taxing agency has collected an amount equal to the base and dedicated taxes with respect to all parcels within the area subject to the plan.

(d) For purposes of allocating tax increment revenues hereunder, a plan may authorize a tax increment agency to separately group one (1) or more parcels within a plan area for purposes of calculating and allocating the tax increment revenues hereunder, and in such cases, the allocation of tax increment revenues shall be calculated and made based upon each such parcel or group of parcels, and not the entire area subject to the plan. Any plan may also provide for and/or permit the allocation of tax increment revenues with respect to any parcel or group of parcels within a plan area to begin in different years in order to match tax increment revenues with the purposes for which such revenues will be applied as determined by the tax increment agency.

(e) A plan may provide the date or dates in each year that each taxing agency shall be required to allocate tax increment revenues to the tax increment agency; and if a plan does not provide the dates for such allocations, tax increment revenues shall be allocated and distributed to each taxing agency no later than March 31 in each year with respect to taxes collected with respect to the prior tax year. Unless a plan provides to the contrary or the taxing agency and tax increment agency otherwise agree, tax increment revenues that are payable with respect to delinquent taxes shall be paid to the tax increment agency within thirty (30) days of receipt by the taxing agency. Partial payments collected prior to the delinquency date shall be allocated first to base and dedicated taxes.

(f) Unless a taxing agency and tax increment agency agree otherwise or a plan provides otherwise, a taxing agency shall pay to the tax increment agency with the payment of any tax increment revenues that are realized from delinquent tax payments, a pro-rata share of the interest on such delinquent taxes based upon the portion of the interest on the delinquent taxes that is attributable to such tax increment revenues.

(g) If the debt service amount has not been established by the governing body of the taxing agency, the debt service amount can be established by a certificate of the chief financial officer of the taxing agency designating such amount with respect to each tax year.