News & Legislative Updates

Latest News

Track the latest local government actions, state legislative battles, and fee changes for Adequate Facilities Taxes, Development Taxes, and Impact Fees across Middle Tennessee's fastest-growing counties and cities.

Editorial Note: Articles are sourced from third-party outlets and government records for informational purposes. Always verify fee rates directly with the applicable jurisdiction.
Latest News

Consultants Present Draft Impact-Fee Study; Single-Family Example Fee Rises Under Updated Methodology

Consultants from Benesh presented a draft impact-fee study to Thompson's Station's Board of Mayor and Aldermen, proposing updates to transportation and parks fees and introducing a new government-buildings fee category. Under the updated consumption-based methodology, a sample single-family home's total calculated fee came in near $12,200 — with roughly 70% attributable to transportation. Staff plans to bring a full ordinance to the April BOMA meeting targeting a July 1 effective date. Board members requested complete copies and additional time to review the numbers before the ordinance is formally introduced.

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After Years of Failed Attempts, Hendersonville Passes Impact Fee for New Residential Developments

After years of deliberation and multiple failed votes, the City of Hendersonville approved new impact fees on residential development. The Board of Mayor and Aldermen passed the measure in an 8–5 vote, setting fees at $6,000 for new single-family homes and $5,500 per unit for multi-family developments. Revenue will be split between city road improvements (two-thirds) and parks (one-third), with the fee taking effect April 1.

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New Homes, New Fees? Hendersonville Leaders Weigh Two Competing Impact Fee Proposals

In January 2026, Hendersonville's Board of Mayor and Aldermen considered two rival proposals for development fees — one covering residential development only, and one extending fees to commercial properties as well. Mayor Jamie Clary, who has tried and failed to pass impact fees twice before over his nine years in office, proposed $5,000 fees for new single-family homes and $3,500 for apartments, with fees earmarked for transportation and parks. The board voted against the initial commercial proposal 4–9 before ultimately passing a residential-only fee in February. Clary noted that $300 million in commercial development over the past five years means commercial builders already contribute substantially through property and sales taxes.

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Hendersonville "On the Verge" of Setting Impact Fees as City Studies Neighboring Communities

By fall 2025, Hendersonville was on the verge of implementing impact fees — a policy the city had last approached in 2018 only to drop. The city charter already authorized the fees without requiring state approval, unlike neighboring Gallatin, whose bid for impact fee authority was rejected by the state legislature in April 2025. Alderman Michael Martin said the board was converging on roughly $5,000 per new residential unit. Planning Director Keith Free said the city was targeting police, fire, parks, and roads as eligible capital improvement categories. A final board decision was expected within six months.

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Hendersonville Moves Toward 9-Month Apartment Construction Moratorium While Studying Impact Fees

In August 2025, Hendersonville's Board of Mayor and Aldermen voted 11–1 to advance a nine-month moratorium on new high-density apartment permits, citing insufficient infrastructure to support rapid growth. Mayor Jamie Clary noted the city had 34 apartment complexes and 40 active subdivision projects underway. The pause was intended to give the city time to finalize impact fee policy and advance 10 transportation infrastructure projects. Clary said Hendersonville's population had grown from roughly 32,000 in 1990 to nearly 64,000 in 2020 and continued to increase about 1% annually. The sole dissenting alderman raised concerns about lost economic development to neighboring cities.

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Gallatin's Push to Authorize New Impact Fees Shot Down in 2025 State Legislative Session

In the 2025 Tennessee legislative session, HB 1413/SB 1435 — sponsored by Rep. William Slater (R-Gallatin) and Sen. Ferrell Haile (R-Gallatin) — sought to empower Gallatin's City Council to impose impact fees on new development. The bill passed in the House subcommittee 1–19–2 but was never calendared in the Senate, effectively killing it for the year. Opposition centered on concerns that the fees could not be capped. The outcome continued a pattern dating to the 2006 County Powers Relief Act, under which no local government has successfully obtained new impact fee authority from the state legislature, despite persistent lobbying by rapidly growing communities including Gallatin, Hendersonville, Rutherford County, and Maury County.

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Williamson County Commission Moves to Increase Adequate Facilities Tax Rate on Non-Residential Development

In November 2025, the Williamson County Commission considered a resolution to increase the assessed rate of the county's Adequate Facilities Tax (AFT) under Private Act No. 118 of 1987 — specifically targeting new non-residential development. Williamson County is one of only four Tennessee counties grandfathered with AFT authority under the 2006 County Powers Relief Act. The county's AFT, which generated approximately $30.8 million annually in fees and development taxes for county schools as of recent estimates, has become a significant funding tool for one of Tennessee's fastest-growing school systems. The resolution was placed on the November 10, 2025 Commission meeting agenda for consideration.

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Murfreesboro Releases Updated 2025–2026 Impact Fee Schedule as Per-Square-Foot Rate Reaches Cap

The City of Murfreesboro released updated impact fee amounts for the 2025–2026 fiscal year, reflecting the final step of a three-year graduated schedule adopted in 2023. Single-family residential fees have now reached the scheduled cap of $2.50 per square foot — up from $1.50/sq ft in 2023 and $2.00/sq ft in 2024 — meaning a new 2,500 square foot home in Murfreesboro carries a $6,250 impact fee. The fees cover four capital improvement categories: roads, parks, public safety, and schools. Permit applications for single-family residential construction received by June 30, 2025, and projects with site plans approved before July 1, 2025, remain subject to the prior year's schedule. Murfreesboro was the first Rutherford County jurisdiction to adopt a modern impact fee structure in 2023.

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Wilson County Commissioners Weigh AFT Increase on Commercial Construction to Fund Road Improvements

Wilson County commissioners gathered in August 2025 to discuss raising the county's Adequate Facilities Tax on new commercial and industrial development — a move aimed at creating a dedicated funding stream for long-overdue road projects. Commissioner Lauren Breeze noted that most surrounding counties, including Rutherford, Maury, and Robertson, charge higher AFT rates than Wilson County, putting the county at a disadvantage when competing for large development projects. The county's AFT currently stands at $5,000 per new residential unit. A road improvement fund funded by higher commercial AFT collections would be a first for the county. As Breeze put it: "We've never had a direct stream of revenue specific to be able to build roads — it could be a gamechanger."

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Maury County Moves to Implement New Impact Fee Under State Law After Years of Failed Attempts

Following the Tennessee General Assembly's passage of House Bill 2426 — signed into law by Governor Bill Lee — Maury County commissioners began initial steps toward implementing a new construction impact fee. The law allows counties meeting specific population growth criteria from the latest U.S. Census to temporarily raise their adequate facilities tax up to $1.50 per square foot, pending a two-thirds majority vote in two consecutive commission meetings. Maury County currently charges 50 cents per square foot for residential construction and 30 cents for non-residential. County Mayor Sheila Butt indicated the new fees could take effect as early as September if approved in July and August meetings. The county attorney flagged potential legal complications and recommended seeking an attorney general opinion before proceeding.

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Columbia Raises Water Impact Fee for New Customers Alongside Proposed 150% Rate Hike to Fund $520M Infrastructure Project

In December 2025, Columbia's City Council began considering both a major water rate increase and a higher water impact fee for new customers as part of a plan to fund a $520 million new intake on the Duck River and a new water treatment plant in Maury County. Columbia Power and Water Systems, which serves 27,000 direct customers and wholesale-supplies water to systems in Maury County, Spring Hill, and Mount Pleasant, requested the council approve the impact fee increase alongside the proposed rate hike of up to 20% per year for five years. Maury County Commissioner Gabe Howard supported the impact fee increase, saying the fee should have been raised years ago to distribute growth costs more fairly. The council approved the measures in January 2026. The project, if funded, would begin in spring 2026 and complete around summer 2029.

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