Officials of the Downtown Chattanooga Alliance have agreed that two churches that are within the district will not have to pay assessments, City Council members were told.
The full exemptions will be for St. Paul's Episcopal Church and the nearby Second Presbyterian Church.
The churches had long objected to paying the assessment, citing their tax-exemption.
The two churches were never actually sent a bill while the issue remained unresolved, it was stated.
The DCA carries out beautification and other projects within a specified downtown district.
Property owners within the district are billed an annual assessment.