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Nolensville leaders weigh appeal after court rules impact fees are a tax

Town of Nolensville Board of Commissioners · October 30, 2025
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Summary

Town officials said a chancery‑court ruling that characterized Nolensville’s impact fees as a tax could force the return of roughly $8 million; staff briefed the board on a 27‑day window to decide whether to appeal and posted the court order and FAQs to the town website.

A chancery‑court ruling that treated the Town of Nolensville’s impact fees as a tax, not a fee, has put the town’s development revenue at risk and prompted the Board of Commissioners to consider an appeal.

Town counsel Charles (speaker 8) told the board the Home Builders Association brought the suit after a 2020 charter change. Charles said the trial court ruled in favor of the homebuilders and that the town has 27 days from receipt of the order to decide whether to file an appeal. "As of today, the town has 27 more days to determine whether to file an appeal," he said, describing the procedural constraints of appellate review.

Mayor (speaker 3) placed the financial stakes in stark terms. Citing updated fund‑balance information, he said "it's around $8,000,000 that would have to be returned" if the ruling stands. He and other commissioners urged the board to move swiftly because an appeal deadline falls before the next regular meeting; the board directed staff to add an appeal authorization to the upcoming voting agenda.

Charles summarized the legal posture: the appellate court reviews matters of law de novo, meaning the town may re‑argue its legal theories but cannot introduce new factual evidence. He said the town continues to believe its ordinance complied with state law and serves the public purpose of ensuring growth pays a proportionate share of infrastructure costs.

Staff also told the public the full court order and a set of FAQs are available on the town website to explain potential impacts. Commissioners said they wanted additional detail on how the ruling would affect specific projects and budgets and encouraged public transparency while they weigh whether to pursue an appeal.

If the board authorizes an appeal at its next regular meeting, the case will move to the court of appeals under the limited procedural rules that govern appellate briefing and review. The board did not take a binding vote on the appeal during the work session; next steps will be considered at the upcoming voting meeting.