Bill > SB2504

This bill, known as the "Local Disaster Displacement Tax Relief Act," allows counties in Tennessee to provide tax relief to their residents who are displaced from their homes due to a declared emergency or disaster. Specifically, counties can offer relief from hotel occupancy taxes and other privilege taxes (which are local taxes levied on certain activities or businesses) for lodging expenses. This relief can be granted through a resolution by the county legislative body or an executive order from the county executive, and it can take the form of a waiver at the time of purchase or a reimbursement for taxes already paid. The relief period is limited to a maximum of fourteen days, which can include a recovery period after the emergency. Counties must establish clear processes to verify residency and displacement, and to manage waivers and reimbursements, working with the department of revenue for taxes collected through short-term rental marketplaces and with authorized collectors for hotel taxes. The bill also clarifies that fraudulent claims will be subject to existing penalties.