Home Builders Association of Middle Tennessee v. Williamson County

Summary

The Tennessee Supreme Court interpreted the Williamson County Adequate Facilities Tax Act, which imposes a privilege tax on new construction. The Court held that once the County collected the tax based on projected square footage at the time of building-permit application, the Act prohibited later collection of additional tax based on the completed project's actual square footage. The Court reversed the Court of Appeals, vacated the trial court's summary judgment for the County, granted summary judgment for the builders, and remanded.

Holdings

1. The Williamson County Adequate Facilities Tax Act prohibits the County from later collecting additional privilege taxes based on the actual square footage of the completed project after the privilege tax has been collected based on projected square footage.
2. The County's general authority to audit and settle accounts does not authorize collection of additional amounts that are not taxes due and payable under the Act.

Questions Presented

1. Whether the Williamson County Adequate Facilities Tax Act authorizes the County to collect additional privilege taxes after construction based on the difference between projected and actual completed square footage.
2. Whether the County's statutory audit and tax-collection authority permits it to collect amounts not assessed and payable under the Act.

Disposition

reversed_and_remanded