TBA Law Blog


Posted by: Azya Thornton on Apr 16, 2025

The Tennessee Court of Appeals ruled Tuesday that while Nashville Mayor Freddie O’Connell’s transit referendum can largely proceed as approved by voters, funds raised through the surcharge cannot be used to purchase land for housing and parks. In a unanimous opinion, Judge Andy Bennett wrote that such purchases fall outside the scope of the state’s IMPROVE Act, which governs transit funding, the Nashville Banner reports. The court noted, however, that the ineligible expenses make up only about 1% of the plan and do not invalidate the overall proposal. The Committee to Stop an Unfair Tax, which filed a lawsuit to block the plan, responded to the decision, with an organization spokesperson calling parts of the ruling “murky” and suggesting a potential appeal to the Tennessee Supreme Court. Metro Legal Director Wally Dietz and O’Connell called the decision an “overwhelming victory” that upholds the will of voters.