Tennessee Code Title 9. Public Finances § 9-23-105

(a) Notwithstanding any tax increment statute to the contrary, any plan may provide that a total of up to five percent (5%) of incremental tax revenues may be set aside for administrative expenses, including expenses incurred by the tax increment agency and tax agency administrative offices (assessor of property and/or trustee or other tax collecting official) in administering the plan, and including a reasonable allocation of overhead expenses.

(b) Notwithstanding subsection (a), a transit-oriented redevelopment plan approved pursuant to title 13, chapter 20, part 7, that includes tax increment financing of one million dollars ($1,000,000) or more may provide that not more than three percent (3%) of incremental tax revenues may be set aside for administrative expenses, including expenses incurred by the tax increment agency and tax agency administrative offices (assessor of property and/or trustee or other tax collecting official) in administering the plan, including a reasonable allocation of overhead expenses.