Shelby County - Subject to local approval, changes the conditions under which the occupancy tax will no longer be levied; changes the allocation of the revenue from the occupancy tax if the tenant of the indoor sports fa, the official text

HOUSE BILL 2666
                      By Vaughan

SENATE BILL 2729
      By Taylor

                                       AN ACT to amend Chapter 131 of the Private Acts of 1969; as
                                                   amended by Chapter 85 of the Private Acts of 1987;
                                                   Chapter 74 of the Private Acts of 1995; Chapter 57 of the
                                                   Private Acts of 2001 and Chapter 67 of the Private Acts
                                                   of 2024; and any other acts amendatory thereto, relative
                                                   to the privilege tax upon hotel occupancy in Shelby
                                                   County.

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

         SECTION 1. Chapter 131 of the Private Acts of 1969, as amended by Chapter 85 of the

Private Acts of 1987, Chapter 74 of the Private Acts of 1995, Chapter 57 of the Private Acts of

2001, Chapter 67 of the Private Acts of 2024, and any other acts amendatory thereto, is

amended by deleting the following language in Section 10(c):

                   At the later of: (i) such time as the original issue of bonds issued to finance the

                   construction of the Cook Convention Center and any bonds issued in accordance

                   with subsections (e) and (f) of Section 10 hereof shall become paid in full as to

                   both principal and interest and (ii) June 30, 2015, the taxing resolution shall be

                   repealed and the tax shall no longer be levied

and substituting instead the following:

                   At the later of: (i) such time as a National Basketball Association franchise is no

                   longer a tenant of an indoor sports facility and (ii) June 30, 2050, the taxing

                   resolution shall be repealed and the tax shall no longer be levied

         SECTION 2. Chapter 131 of the Private Acts of 1969, as amended by Chapter 85 of the

Private Acts of 1987, Chapter 74 of the Private Acts of 1995, Chapter 57 of the Private Acts of

2001, Chapter 67 of the Private Acts of 2024, and any other acts amendatory thereto, is

amended by deleting the language "and ticket shortfall" in Section 10(e)(2)(B).

SB2729
017103

  -1-
         SECTION 3. Chapter 131 of the Private Acts of 1969, as amended by Chapter 85 of the
Private Acts of 1987, Chapter 74 of the Private Acts of 1995, Chapter 57 of the Private Acts of
2001, Chapter 67 of the Private Acts of 2024, and any other acts amendatory thereto, is
amended by deleting Section 10(e)(2)(E) and substituting instead:

                   (E) Upon such time as an indoor sports facility is no longer occupied by a
         National Basketball Association franchise as a tenant, sixty-one and one-quarter percent
         (61.25%) of the revenues of the tax will be allocated to the CVB and thirty-eight and
         three-quarters percent (38.75%) will be allocated to the County for any purpose
         permitted under this Private Act.
         SECTION 4. This act shall have no effect unless it is approved by a two-thirds (2/3) vote
of the legislative body of Shelby County. Its approval or nonapproval shall be proclaimed by the
presiding officer of the legislative body and certified to the secretary of state.
         SECTION 5. For the purpose of approving or rejecting the provisions of this act, it shall
be effective upon becoming a law, the public welfare requiring it. For all other purposes, it shall
become effective as provided in Section 4.

-2-  017103