An ordinance authorizing the Metropolitan Government to collect payments in lieu of ad valorem taxes from owners of properties required to make such payments pursuant to Tennessee Code Annotated 67-5-207; approving the formula for calculating such payments; and authorizing the Metropolitan Government to enter into the necessary agreements to collect such payments.

WHEREAS, Tennessee Code Annotated 67-5-207 provides an exemption from local property taxes for any portion of real property, owned by a qualifying Tennessee nonprofit corporation, which is used for permanent housing of low income persons with disabilities, or low income elderly or handicapped persons; and

WHEREAS, in lieu of any taxes from which a property is granted exemption under the statute, the owners of properties that include more than twelve (12) qualifying units, are required by the statute to agree to make payments to the Metropolitan Government in an amount not to exceed the estimated cost of improvements, facilities, or services furnished for those units; and

WHEREAS, the statute requires the Metropolitan Government to enter the necessary agreements with the owners of qualifying properties to collect such payments; and

WHEREAS, a proposed form of agreement is attached hereto as Exhibit A.

NOW, THEREFORE BE IT ENACTED BY THE COUNCIL OF THE METROPOLITAN GOVERNMENT OF NASHVILLE AND DAVIDSON COUNTY:

SECTION 1: That the Metropolitan Council hereby approves the formula for calculating payments in lieu of taxes for properties required to make such payments pursuant to Tennessee Code Annotated 67-5-207, as follows:

Twenty-five (25) percent of the taxes that would otherwise be due for that portion of the property that has been exempted, as determined on an annual basis by the Assessor of Property.

SECTION 2: That the Metropolitan Government is hereby authorized to enter into the necessary agreements to accept such payments, including those in substantial form to Exhibit A hereto.

SECTION 3: That the Metropolitan Mayor is authorized to execute the agreements on behalf of the Metropolitan Government.

SECTION 4: That the agreements shall be implemented by the Offices of the Assessor of Property and Trustee.

SECTION 5. That this Ordinance shall take effect from and after its final passage, the welfare of The Metropolitan Government of Nashville and Davidson County requiring it.

Sponsored by: Brenda Gilmore, Diane Neighbors

LEGISLATIVE HISTORY
Introduced:	April 20, 2004
Passed First Reading:	April 20, 2004
Referred to:	Budget & Finance Committee
Passed Second Reading:	May 18, 2004
Passed Third Reading:	June 1, 2004
Approved:	June 2, 2004
By: