Taxes, Hotel Motel

Plain English Breakdown

The official source material does not provide specific details on how the extra tax will be spent beyond maintaining current funding levels, nor does it specify any limits on additional revenue above $2.00 per room night.

Hotel Tax Extension Act

This bill extends the authority for Davidson County to charge an additional hotel occupancy tax and sets new expiration dates for committee terms overseeing tourism funding.

What This Bill Does

• Extends until May 21, 2032, the period during which Davidson County can impose a $0.50 additional privilege tax on hotel room occupancy beyond the base rate of up to $2.00 per night.
• Updates the expiration date for committee members overseeing the Event and Marketing Fund from May 21, 2020, to May 21, 2032.

Who It Names or Affects

• Hotel guests staying in Davidson County who will pay an additional tax on their hotel rooms.
• The Metropolitan Government of Nashville-Davidson County which collects and manages the extra hotel occupancy tax funds.
• Tourism-related businesses that benefit from marketing efforts funded by the Event and Marketing Fund.

Terms To Know

Hotel Occupancy Tax

A tax charged to people who stay in hotels, which helps fund local services or programs.

Event and Marketing Fund

A special fund used by the Metropolitan Government of Nashville-Davidson County to promote tourism and events.

Limits and Unknowns

• The bill does not specify how the extra tax will be spent beyond maintaining current funding levels.
• It is unclear if there are any limits on how much additional revenue can go into the Event and Marketing Fund above $2.00 per room night.

Official Summary Text

Present law provides that

i
n addition to any other tax or fee imposed
by law
on the occupancy of a hotel
room, upon the adoption of an ordinance by
the
metropolitan council in
Davidson C
ounty, there is authorized an additional privilege tax of up to $2.50 upon the occupancy of each hotel room within the territory of that metropolitan government.
A
ll revenues
received by the metropolitan government from
such
privilege tax that exceed $2
.00

must
be deposited into
an
event and marketing fund.
The fund must be
governed by a six-person committee and a chair who votes only to break a tie.

Present law provides th
at the
authority to charge
such
privilege tax in excess of $2
.00
and the terms of the committee members expire six years from May 21, 2020.
This bill extends that date to May 21, 2032.

Current Bill Text

<BillNo> <Sponsor>

SENATE BILL 154
By Pody

SB0154
001289
- 1 -

AN ACT to amend Tennessee Code Annotated, Section 7-
4-202, relative to hotel occupancy taxes within
metropolitan governments.

BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF TENNESSEE:
SECTION 1. Tennessee Code Annotated, Section 7-4-202, is amended by deleting the
language "May 21, 2020" in subdivision (d)(2) and substituting instead the language "May 21,
2032".
SECTION 2. This act takes effect upon becoming a law, the public welfare requiring it.