Tennessee House Bill HB1550

Tennessee 2023-2024 Regular Session

• Introduced: 2/28/23
• Refer: 3/6/23
• Refer: 3/14/23
• Engrossed: 3/23/23
• Enrolled: 3/31/23
• Passed: 4/25/23
• Chaptered: 5/24/23

Caption

AN ACT to amend Chapter 324 of the Private Acts of 1980; as amended by Chapter 34 of the Private Acts of 1985; Chapter 65 of the Private Acts of 2005 and Chapter 54 of the Private Acts of 2020; and any other acts amendatory thereto, relative to the hotel-motel tax for Madison County and the City of Jackson.

Impact

If enacted, the bill would significantly reshape the financial landscape for local tourism initiatives by directing all tax proceeds from a completed tourism project into a dedicated fund controlled by the Community Economic Development Commission. The remaining tax revenue would be split, with 40% going to the general fund of the City of Jackson, another 40% to Madison County, and the final 20% for the Commission’s purposes, which could enhance community-funded projects in tourism.

Summary

House Bill 1550 aims to amend the existing statutes surrounding the hotel-motel tax for Madison County and the City of Jackson, specifically addressing revenue allocation from this tax. The bill prescribes that once a single tourism attraction project is determined to be substantially completed, 100% of the net taxes collected from the project will be allocated to the Community Economic Development Commission for a period of 20 years. Should no such project be underway by December 31, 2024, this allocation will become null and void.

Sentiment

The overall sentiment towards HB 1550 appears to be supportive among legislators interested in boosting tourism and local economic development. However, discussions indicate some concerns about the allocation process and whether it sufficiently supports broader community needs or focuses too narrowly on specific tourism projects.

Contention

Notable points of contention involve the potential for unequal benefits derived from this tax allocation. Critics may question the dependency on a single tourism project for sustained revenue, as well as the lack of provisions for counties or cities that might not have the same opportunities for such projects. Furthermore, the necessity of achieving a two-thirds majority for the bill's approval introduces an additional layer of complexity and potential disagreement among local government officials.