Board Returns BlueCross Headquarters Ownership to Insurer
The Chattanooga Industrial Development Board closed out a 16-year tax arrangement on the insurer's downtown headquarters.
Updated on Nov. 3, 2026 in Healthcare
The Industrial Development Board of Chattanooga voted unanimously on Monday to return ownership of the BlueCross BlueShield of Tennessee headquarters to the insurer. The property returns to full value on city and Hamilton County tax rolls as BlueCross works to sell the 950,000-square-foot building.
Why it matters
The board had held title to the headquarters for 16 years under a payment-in-lieu-of-tax arrangement approved in 2005 to keep the insurer downtown. With that incentive ending, the property shifts back to full taxation, affecting city and county revenue.
BlueCross paid half the property taxes due on the 950,000-square-foot headquarters from 2010 to 2025, a break valued at roughly $36.8 million over 16 years. The source does not say what a sale of the property would bring or when it might close.
The players
BlueCross BlueShield of Tennessee
The largest health insurer in Tennessee, headquartered in Chattanooga and now working to sell its downtown office building.
Industrial Development Board of Chattanooga
The city board that held title to the headquarters for 16 years and voted to close out the tax arrangement.
The details
The board voted unanimously on Monday to close out the payment-in-lieu-of-tax arrangement, returning the headquarters to BlueCross ownership and full taxable value. BlueCross is attempting to sell the property.
Timeline
2005: Payment-in-lieu-of-tax break approved to keep the headquarters downtown.
2010 to 2025: BlueCross paid 50% of property taxes due on the headquarters.
Monday, November 2, 2026: Board voted to return headquarters ownership to BlueCross.
Market Landscape
The 2005 payment-in-lieu-of-tax arrangement was approved to keep BlueCross downtown, and its closure ends a 16-year incentive that helped anchor the insurer in Chattanooga. The return of the headquarters to full taxation reflects how such local incentives for large healthcare employers are time-limited.
With the headquarters back on full tax rolls, city and Hamilton County property tax revenue from the building will rise. How the sale proceeds and any future owner affect local jobs has not been stated.
The takeaway
Local tax incentives for large employers are often time-limited, and their expiration can return significant property revenue to city and county budgets. Residents tracking the sale should watch for the buyer and terms once they are announced.
Further reading
For more on the insurer's local footprint, see Healthcare coverage in Chattanooga.
Source note: This article includes information reported by Timesfreepress.
