Sumner County asks Hendersonville to explain $3.25M in unpaid commercial impact fees

Sumner County staff reported that the city of Hendersonville has not forwarded commercial adequate‑facilities tax payments the county says are due for permits issued since February 2024.

Katie Schaer, introduced to the committee as a Sumner County coordinator, described the department’s review of Hendersonville permit reports and identified commercial permits not accompanied by adequate‑facilities tax receipts. Staff said residential collections had been remitted but commercial payments were not and that certified notice and a follow‑up rebuttal from Hendersonville (dated Feb. 23, 2026) are in the committee packet. Staff presented an outstanding commercial total listed in the materials as 3,254,720 (stated in the meeting as "3254720").

County legal staff told the committee the county’s resolution places the responsibility on the municipality where the issuance of permits breaks the chain of collection; if Hendersonville failed to require contractors to remit the tax as part of the permit packet, the outstanding liability would rest with the city under county interpretation of the resolution.

Commissioners discussed enforcement options. The committee directed the county law director to send a response packet to Hendersonville, request a city representative to appear at the April legislative committee meeting to explain payment timelines and records, and asked staff to prepare documentation of amounts paid to date. Committee members said litigation is a possible last step but agreed first to seek a response and a public discussion in April.