title
An ordinance requiring an annual review and an annual presentation to the Budget and Finance Committee of the Metropolitan Council from all boards, commissions, departments, and authorities offering tax abatement incentives.
body
WHEREAS, for many years, tax incentives such as Tax Increment Financing ("TIF") and Payments in Lieu of Taxes have been used to promote economic development, job creation, construction of affordable housing, and other public goods pursuant to Tennessee Code Annotated Title 7, Chapter 53 and Title 9, Chapter 23; and
WHEREAS, Nashville's explosive growth has brought many benefits, but has also created barriers for the private sector, government, and non-profits in providing needed community assets like affordable housing, small business locations, grocery stores, and childcare facilities; and
WHEREAS, in 2019 the TIF Study and Formulating Committee Report confirmed the economic benefit of properly vetted and designed TIF incentives, and in 2024, the Tax Abatement Study and Formulating ("TASF") Committee studied tax incentives more broadly and concluded that tax incentives can be an effective way to enable private entities to provide public goods such as jobs, infrastructure, and housing, and that priorities, goals, and outcomes should be regularly reviewed for relevance and effectiveness; and
WHEREAS, the TASF Committee reviewed Government Finance Officers Association ("GFOA") recommendations and considered best practices from other cities to investigate whether to place some type of cap on aggregate abatements. The committee concluded that too many subjective factors exist to establish an absolute or a percentage cap, including the financial health of the city, the direct and indirect benefits of different programs, and future growth potential; and
WHEREAS, as multiple programs utilize future property tax dollars to incentivize public goods, it is prudent to regularly review priorities and to examine what amounts or what proport...
Click here for full text