Tennessee Code 7-88-108 – Qualified public use facility – Application for certification – Review – Cost summary – Commencement of tax apportionment and distribution
(a) To be entitled to receive the allocations of state and local sales and use taxes as provided in this chapter, a municipality or public authority must first file with the department of finance and administration an application seeking certification of the tourism development zone and the planned public use facility as a qualified public use facility. The application shall include a master development plan for the proposed tourism development zone, containing such information as may be reasonably required by the department. A municipality or public authority shall include a resolution adopted by the county legislative body with any application for approval of the tourism development zone which would utilize any portion of the local option sales tax revenues designated for schools pursuant to § 67-6-712(a)(1). The resolution shall provide whether the county legislative body is in support of, in opposition to, or neutral regarding the application. Upon request by the municipality or the public authority, the county legislative body shall provide such resolution not less than five (5) days after the next regularly scheduled meeting of the county legislative body. The department shall review the application to confirm that:
Terms Used In Tennessee Code 7-88-108
Beneficially impacted area: means the geographic area within which it is reasonably anticipated and projected that state and local sales and use taxes will increase as a result of the construction and operation of the qualified public use facility by an amount in excess of the increases in the collection of state and local sales and use tax revenues reasonably projected to occur within that area without regard to the construction of the public use facility. See Tennessee Code 7-88-103
Fiscal year: The fiscal year is the accounting period for the government. For the federal government, this begins on October 1 and ends on September 30. The fiscal year is designated by the calendar year in which it ends; for example, fiscal year 2006 begins on October 1, 2005 and ends on September 30, 2006.
Municipality: means any incorporated city or county located in the state of Tennessee, including a county with a metropolitan form of government. See Tennessee Code 7-88-103
Public authority: means any agency, authority or instrumentality created or authorized by any municipality or by two (2) or more municipalities acting jointly, including, but not limited to, any public building authority organized pursuant to the Public Building Authorities Act of 1971, compiled in title 12, chapter 10 or an industrial development corporation organized pursuant to chapter 53 of this title. See Tennessee Code 7-88-103
Qualified public use facility: includes : (i) Any building, complex, center, facility or any two (2) or more adjacent buildings, complexes, centers or facilities containing at least two hundred fifty thousand square feet (250,000 sq. See Tennessee Code 7-88-103
Secondary tourist development zone: means a tourist development zone that at the time of its creation is located more than three (3) miles from the county courthouse. See Tennessee Code 7-88-103
State: when applied to the different parts of the United States, includes the District of Columbia and the several territories of the United States. See Tennessee Code 1-3-105
Tourism development zone: means an area in a municipality designated by ordinance or resolution of such municipality in which a qualified public use facility is located or planned, that is determined by the department of finance and administration to be a beneficially impacted area in accordance with the requirements of this chapter and that is certified as a tourism development zone by the department. See Tennessee Code 7-88-103
(1) The planned public use facility is qualified under the requirements of this chapter; and(2) The planned public use facility will be located within a qualified tourism development zone.(b) The department shall also review the proposed boundaries of the proposed tourism development zone and shall determine if it is a beneficially impacted area. If the department determines that the boundaries of the proposed tourism development zone exceed the area that is reasonably anticipated to benefit from the construction and operation of the qualified public use facility, the department may adjust or reduce the boundaries of the proposed area. In reviewing the application, the department shall consult with the department of economic and community development and the department of tourism. Upon completion of its review of the application, the department of finance and administration shall certify the tourism development zone and forward the application to the state building commission for review and approval or disapproval, based on the standards established by this chapter.(c) Upon completion of the qualified public use facility, the municipality shall submit to the department of finance and administration a summary of the cost of the public use facility with supporting documentation, certified by the chief financial officer of the municipality. The department shall review the cost certification to confirm the amount of state and local sales and use taxes to be apportioned and distributed to the municipality pursuant to § 7-88-106.(d) Except as otherwise provided in subsection (f), the apportionment and distribution of state and local sales and use taxes to the municipality, as provided in this chapter, shall commence at the beginning of the fiscal year in which the state building commission approves the application, or the beginning of the fiscal year in which the facility opens for public use, whichever is later.(e) A facility shall be deemed to be “open for public use” for purposes of subsection (d), if:
(1) Financing is in place and debt service payments by the municipality or public authority have commenced;(2) A significant part or component of the qualified public use facility, as defined in § 7-88-103, has been completed and is open to the public;(3) The municipality or public authority is making reasonable progress on the unfinished portion of the qualified public use facility; and(4) All other provisions of this chapter have been complied with.(f) If there has been designated within the municipality a secondary tourist development zone, then the apportionment and distribution of state and local sales and use taxes to the municipality, as provided in § 7-88-106(c), shall commence at the beginning of the fiscal year in which the state building commission approves the application and the public authority has incurred debt to finance construction of the qualified public use facility within the zone, whichever is later.
