Official Summary Text
Present law authorizes a municipality to levy, modify, or repeal a hotel occupancy privilege tax by ordinance or resolution subject to certain restrictions. Except as otherwise provided for municipal
ities that had a hotel occupancy tax in effect before July 1, 2021, the hotel occupancy privilege tax levied must not exceed 4% of the consideration charged to a transient by the hotel operator. For purposes of this bill, a "transient" is a person who ex
e
rcises occupancy or is entitled to occupancy of any rooms, lodgings, or accommodations in a hotel for a period of less than 30 continuous days.
When a person has maintained occupancy for 30 continuous days, present law requires that person to receive fro
m the operator a refund or credit for the tax previously collected from or charged to that person, and the operator must receive credit for the amount of such tax if previously paid or reported to the municipality. This bill revises this provision to, in
s
tead, provide that in such a situation, the operator must remit the tax for such period to the municipality and cease collecting the tax from the person for the remainder of their stay in the operator's hotel.
For purposes of this bill, a "hotel" include
s privately, publicly, or government-owned hotels, inns, tourist camps, tourist courts, tourist cabins, motels, short-term rental units, primitive and recreational vehicle campsites and campgrounds, or any place in which rooms, lodgings, or accommodations
are furnished to transients for consideration. Also, for purposes of this bill, a "municipality" does not include a county with a metropolitan form of government.
ON MARCH 17, 2025, THE SENATE ADOPTED AMENDMENT #1 AND PASSED SENATE BILL 384, AS AMENDED.
AMENDMENT #1 limits the application of the bill to
rental agreements entered into, renewed, or amended on or after July 1, 2025.
Current Bill Text
Read the full stored bill text
SENATE BILL 384
By Taylor
HOUSE BILL 405
By Leatherwood
HB0405
002171
- 1 -
AN ACT to amend Tennessee Code Annotated, Title 67,
Chapter 4, Part 14, relative to taxation.
BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF TENNESSEE:
SECTION 1. Tennessee Code Annotated, Section 67-4-1404(b), is amended by
deleting the subsection and substituting instead:
(b) When a person has maintained occupancy for thirty (30) continuous days,
the operator shall remit the tax for such period to the municipality pursuant to subsection
(a) and cease collecting the tax from the person for the remainder of their stay in the
operator's hotel.
SECTION 2. This act takes effect upon becoming a law, the public welfare requiring it.