Tennessee Code 7-88-117 – Fee on sales of services and tangible personal property within central business improvement district within tourism development zone
Corporation: A legal entity owned by the holders of shares of stock that have been issued, and that can own, receive, and transfer property, and carry on business in its own name.
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.
Metropolitan government: means the political entity created by consolidation of all, or substantially all, of the political and corporate functions of a county and a city or cities. See Tennessee Code 7-1-101
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) Notwithstanding any law to the contrary, any metropolitan government which has created a tourism development zone pursuant to this chapter and which tourism development zone completely includes one (1) or more central business improvement districts, may, by resolution of its governing body, impose an additional fee on the sales price of services and tangible personal property sold at retail within one (1) central business improvement district located within the tourism development zone; provided, that there shall be exempt from the fee imposed by this chapter any sales of the following:
(A) Professional services;(B) Lodging provided to transients;(C) Tickets to sporting events or other live ticketed events;(D) Alcoholic beverages which are subject to the liquor by the drink tax in addition to sales tax;(E) Newspapers and other publications; and(F) Overnight and long term parking.(2) The fee authorized by this section shall not exceed the rate of fifty hundredths percent (0.50%).(b)(1) The metropolitan government shall furnish a certified copy of the adopting resolution to the department of revenue in accordance with regulations prescribed by the department. Such resolution shall clearly designate the one (1) central business improvement district within which the additional fee applies and shall include a description of the boundaries of such district.(2) The department of revenue shall collect such fee concurrently with the collection of the state sales tax in the same manner as the state sales tax is collected.(3) Except as provided in subdivision (b)(4):
(A) One-half (1/2) of the proceeds of the fee provided for in this section must be distributed to the metropolitan government from which the fee was collected to be deposited into the event and marketing fund of such government. The funds derived from the collection of this fee and distributed pursuant to this subdivision (b)(3)(A):
(i) Must be used to assist in the recruitment of major conventions and group meetings, the improvement of promotion, and to provide additional focused security in the central business improvement districts located within a tourism development zone; and(ii) Shall not be used to assist in the recruitment of, directly or indirectly, conventions or group meetings that are considering, or would otherwise consider absent the use of this fee, other meeting and convention venues located in a county in which such fee is imposed; and(B) One-half (1/2) of the proceeds of the fee provided for in this section must be distributed to the metropolitan government from which the fee was collected to be deposited into the Nashville District Management Corporation Fund of such government. The funds derived from the collection of this fee and distributed pursuant to this subdivision (b)(3)(B) must be used to promote safety and cleanliness in the central business improvement district located in downtown Nashville. For the purposes of this subdivision (b)(3)(B), to “promote safety and cleanliness” may include, but is not limited to, enhanced public safety, social services, and sidewalk cleaning.(4)(A) For fiscal year 2013-2014, the first one hundred sixty-five thousand dollars ($165,000) of the fee collected shall be deposited into the state general fund prior to any distribution to metropolitan government.(B) For fiscal year 2014-2015 and subsequent fiscal years, the first fifty thousand dollars ($50,000) of the fee collected shall be deposited into the state general fund prior to any distribution to metropolitan government.
