Bill > SB0629

This bill amends Tennessee's occupancy tax regulations by making several key changes: It defines new terms such as "tourism promotion" (planning and advertising to attract tourists) and "tourist" (an individual traveling more than 50 miles for business or leisure), and clarifies how municipalities can use tax revenue from short-term rentals and hotel occupancy. Specifically, the bill mandates that revenue from occupancy taxes must be designated for tourism promotion and development, and requires municipalities to submit an annual report to the state's tourist development department detailing how these funds were spent. If an audit finds that funds were improperly used, the municipality must appropriate an equivalent amount from its general funds to support tourism efforts in the subsequent fiscal year. The bill also limits the occupancy tax to 4% per hotel transaction, with a cumulative tax cap of 8% in any incorporated county area, and provides special provisions for existing tax arrangements before May 1, 2025. Additionally, the legislation introduces new requirements for collecting and remitting taxes on short-term rental units secured through online marketplaces, aiming to standardize and regulate these tax collections more effectively.

Budget and Finance, Government Affairs

https://wapp.capitol.tn.gov/apps/Billinfo/default.aspx?BillNumber=SB0629&ga=114