Taxes - As enacted, adds to the definition of a "qualified public use facility" as used in the Local Tourism Development Zone Business Tax Act a mixed-use development containing a performance venue with a seating capacit, the official text

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                         ~tate of \leennessee

                         PUBLIC CHAPTER NO. 1034

                                                  HOUSE BILL NO. 2496

                             By Representatives Farmer, Atchley, Faison, Hawk

                                       Substituted for: Senate Bill No. 2633

                                            By Senators Seal, Southerland

         AN ACT to amend Tennessee Code Annotated, Title 7 and Title 67, relative to taxation.

BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF TENNESSEE:

         SECTION 1. Tennessee Code Annotated, Section 7-88-114, is amended by adding the
following as a new subsection:

                   (h) If a municipality or public authority is entitled to receive an allocation of sales
         tax revenues pursuant to this chapter and pursuant to § 67-6-103, then the municipality
         or public authority may apply such sales tax revenues from the applicable area for the
         purposes authorized under this chapter or for the purposes authorized by § 67-6-103, as
         determined by the municipality or public authority.

         SECTION 2. Tennessee Code Annotated, Section 67-4-3002, is amended by deleting
subdivision (7)(0) and substituting instead:

                   (D) A mixed-use development initially including a sports facility containing ten
         (10) or more sports fields or a performance venue with a seating capacity of at least two
         thousand five hundred (2,500), including any retail, office, hotel, apartment,
         condominium, and other commercial or residential uses, and for which any portion was
         located in a tourism development zone when certified, that is expected by the
         municipality to require a total public and private capital investment of two hundred million
         dollars ($200,000,000) or more;

         SECTION 3. Tennessee Code Annotated, Section 67-6-103, is amended by adding the
following language as a new subsection:

                    ()

                             (1) Notwithstanding the allocations provided for in subsection (a), if a
                   performance venue with a seating capacity of not less than two thousand five
                   hundred (2,500) is to be constructed or renovated as an adaptive use of a
                   publicly owned stadium that previously was leased to a minor league baseball
                   team playing at the Class AA level or higher that relocated within this state, then
                   an amount must be apportioned and distributed to a public entity designated by
                   the municipality that is responsible for the retirement of all or a portion of the
                   original debt relating to such performance venue equal to the amount of any state
                   and local sales and use tax revenue, other than any portion of local sales taxes
                   that otherwise would be allocated for school purpos_es, from the sale of food and
                   drink and other authorized goods or products, ticket sales, parking charges, and
                   any other goods and services that occur on the premises on which the
                   performance venue is located including any ancillary areas to such performance
                   venue that are used for parking and related uses. Any such tax revenues must
                   be applied to the debt service related to the performance venue, as such debt
                   may be refinanced from time to time. This apportionment and distribution must
                   continue until the date on which such debt is retired, or until the expiration of
                   thirty (30) years from the end of the first full fiscal year after such venue is placed
                   in service, whichever is sooner.

                             (2) Notwithstanding subdivision ( )(1) to the contrary, no portion of the
                   revenue derived from the increase in the rate of sales and use tax allocated to
HB2496
                   educational purposes pursuant to chapter 529, § 9 of the Public Acts of 1992,
                   and no portion of the revenue derived from the increase in the rate of sales and
                   use tax from six percent (6%) to seven percent (7%) contained in chapter 856, §
                   4 of the Public Acts of 2002, must be apportioned and distributed pursuant to
                   subdivision ( )(1). The revenue must continue to be allocated as provided in
                   chapter 529 of the Public Acts of 1992 and chapter 856 of the Public Acts of
                   2002, respectively.

         SECTION 4. This act takes effect upon becoming a law, the public welfare requiring it.

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         HOUSE BILL NO. 2496

PASSED:  April 23. 2026

                                 CAMERON SEXTON, SPEAKER
                                 HOUSE OF REPRESENTATIVES

                                                       RANDY MCNALLY
                                          SPEAKER OF THE IENATE

rYJ APPROVED this a.19:- day of  GL!iA ,  2026
                                 l

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BILL LEE, GOVERNOR