Bill > HB0627

This bill amends Tennessee's occupancy tax regulations by introducing several key changes. The bill provides new definitions for "tourism development" as the creation or expansion of public attractions and facilities that enhance tourist experiences, and "tourist" as an individual traveling more than 50 miles for business or leisure. It mandates that revenue from occupancy taxes must be designated for tourism promotion and development, with specific reporting requirements: municipalities must submit an annual report to the state's tourist development department detailing how these funds were spent within 90 days of their fiscal year's end. The bill also establishes that if an audit finds a municipality has improperly spent these funds, they must appropriate an equivalent amount from general funds to support tourism promotion in the subsequent fiscal year. Additionally, the legislation limits the occupancy tax to 4% per transaction, with a cumulative cap of 8% in incorporated county areas, and provides provisions for municipalities with existing tax structures before May 1, 2025. The bill requires short-term rental taxes collected through rental marketplaces to be managed according to new state guidelines, aiming to create more transparency and accountability in how local tourism taxes are collected and utilized.

Budget and Finance, Government Affairs

https://wapp.capitol.tn.gov/apps/Billinfo/default.aspx?BillNumber=HB0627&ga=114