AN ACT to amend Tennessee Code Annotated, Section 7-4-202, relative to hotel occupancy taxes within metropolitan governments.
Summary
SB0734 amends Tennessee law governing hotel occupancy taxes in metropolitan governments by extending a date-based provision in Tennessee Code Annotated, Section 7-4-202. Specifically, it changes the sunset or applicability date in subdivision (d)(2) from May 21, 2020 to May 21, 2026. The bill is narrow in scope and does not create a new tax; rather, it updates an existing statutory date tied to the authority or administration of hotel occupancy taxes within metro governments.
In practical terms, the bill preserves the continued operation of the affected hotel occupancy tax provision for an additional six years. This affects metropolitan governments, local tax administration, and potentially hotel operators and lodging taxpayers within those jurisdictions by maintaining the legal framework for collecting or allocating hotel occupancy tax revenue under the referenced statute. Because the bill is a technical amendment to a local government tax statute, its impact is limited to the specific metropolitan-government context addressed in Section 7-4-202.
Impact
The bill amends Tennessee Code Annotated Section 7-4-202 by replacing the date "May 21, 2020" with "May 21, 2026" in subdivision (d)(2). This extends the operative period of the referenced hotel occupancy tax provision for metropolitan governments and preserves existing local tax authority or related statutory treatment without otherwise changing tax rates, eligibility, or collection procedures. The affected parties are metropolitan governments, hotel and lodging businesses, and taxpayers subject to the hotel occupancy tax in those jurisdictions.
Sentiment
The available voting history suggests broad support for the bill. It was recommended for passage unanimously in the Senate State & Local Government Committee and the Senate Finance, Ways and Means Committee, and it passed third consideration in the Senate without opposition. The final floor vote on regular calendar passage was 58-22, indicating that while the measure ultimately passed comfortably, there was some recorded dissent on the floor.
Contention
The bill appears to have been largely noncontroversial in committee, with no recorded opposition in the committee votes. The only notable contention is reflected in the final floor vote, where 22 senators voted no despite the bill’s technical and limited scope. Based on the bill text and available context, any disagreement likely centered on the policy choice to extend the hotel occupancy tax-related provision for metropolitan governments, rather than on the mechanics of the amendment itself.