A resolution supporting HB 3289/SB 3242, currently pending in the Tennessee General Assembly, which would restore the practice of taxing pipelines, railroad structures, broadcast towers, and other such property affixed to or buried in the ground, as real property.

WHEREAS, T.C.A. §67-5-501 currently provides in part that, for the purpose of classification and assessment of property, real property includes lands, structures, improvements, and equipment affixed to real property; and

WHEREAS, a recent court ruling held that pipelines installed subsurface and surface equipment shall be treated as personal property for purposes of ad valorem taxation; and

WHEREAS, the court ruling modified the common practice of local governments, which was to tax such pipelines and equipment as real property; and

WHEREAS, as a result of this court ruling, local governments stand to lose a considerable amount of tax revenue used to provide vital governmental services; and

WHEREAS, State Senator Henry and Representative Head have sponsored legislation currently pending in the Tennessee General Assembly that would restore the common practice of assessing and taxing pipelines, railroad structures, telephone poles and towers, and other such property attached to land as real property; and

WHEREAS, the fiscal note provided for this legislation estimates that the adoption of this legislation would prevent a decrease in local government revenues in excess of $10,000,000; and

WHEREAS, it is fitting and proper that the Metropolitan Council of Nashville and Davidson County go on record as supporting HB 3239 and SB 3242.

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

Section 1. That the Metropolitan County Council hereby goes on record as supporting HB 3289/SB 3242, currently pending in the Tennessee General Assembly, which would restore the practice of taxing pipelines, railroad structures, broadcast towers, and other such property affixed to or buried in the ground, as real property.

Section 2. The Metropolitan Clerk is directed to send a certified copy of this Resolution to each member of the Davidson County Delegation to the Tennessee General Assembly.

Section 3. This Resolution shall take effect from and after its adoption, the welfare of The Metropolitan Government of Nashville and Davidson County requiring it.