Amends TCA Title 4; Title 5; Title 6; Title 7; Title 8; Title 9; Title 49; Title 57 and Title 67.

This bill extends the present law distribution method of gross receipts from liquor-by-the-drink tax to local political subdivisions. The current distribution method is scheduled to expire on June 30, 2019. This bill extends this distribution method to cover the period of July 1, 2019, through June 30, 2020.<br /> <br /> Present law imposes a tax equal to the rate of 15 percent of the sales price of all alcoholic beverages sold for consumption on the premises, which is distributed as follows:<br /> <br /> (1) 50 percent to the general fund to be earmarked for education purposes; and<br /> (2) 50 percent to be distributed to local political subdivisions.<br /> <br /> Under the current distribution method, the proceeds that are directed to the local political subdivision generally must be distributed as follows:<br /> <br /> (1) One half to:<br /> <br /> (A) The county trustee, if the county school system is the only LEA in the county and the county or any city within the county chooses to levy a liquor-by-the-drink tax;<br /> (B) The city recorder, if a city chooses to levy a liquor-by-the-drink tax and operates a K-12 school system;<br /> (C) The city recorder, if a city chooses to levy a liquor-by-the-drink tax and operates a school system that is not a K-12 school system, with the amount adjusted based on: the average daily attendance of the city schools in proportion to the combined average daily attendance of the city and county schools, with the remaining amount distributed to the county trustee; or if the city lies within two or more counties, the average daily attendance of the city schools in proportion to the combined average daily attendance of the city and county schools, with the remaining amount divided between the counties where the tax was collected and distributed to the appropriate county trustee;<br /> (D) The county trustee, if a city chooses to levy a liquor-by-the-drink tax but does not operate a city school system;<br /> (E) The appropriate official acting for a special school district, if a special district lies, in whole or in part, within a city that chooses to levy a liquor-by-the-drink tax, with the amount adjusted based on the average daily attendance of students residing in the city and attending the special school district in proportion to the average daily attendance of city public school students who attend either the special school district or the county school system, with the remaining amount distributed to the county trustee;<br /> (F) The county trustee, if a county chooses to levy a liquor-by-the-drink tax and one or more city school systems operate within the county, any tax revenues collected outside the boundaries of cities levying a liquor-by-the-drink tax that have city school systems; or<br /> (G) The appropriate county trustees, if a city that lies in two or more counties chooses to levy a liquor-by-the-drink tax but does not operate a city school system; and<br /> <br /> (2) One half to the county general fund from proceeds collected in unincorporated areas or to the city or town for proceeds collected in incorporated areas.<br /> <br /> For school years after July 1, 2020, the distribution method will return to the following for all political subdivisions:<br /> <br /> (1) One half must be expended and distributed in the same manner as the county property tax for schools is expended and distributed; provided, however, any proceeds expended and distributed to municipalities that do not operate their own school systems separate from the county are required to remit one half of their proceeds of the gross receipts liquor-by-the-drink tax to the county school fund; and<br /> (2) One half must be distributed as follows:<br /> <br /> (A) Collections of gross receipts collected in unincorporated areas, to the county general fund; and<br /> (B) Collections of gross receipts in incorporated cities and towns, to the city or town wherein such tax is collected.<br /> <br /> This bill retains the present law exception from following the current distribution method for a municipality that is a premier tourist resort. The gross receipt taxes allocated to local political subdivisions must be distributed to and expended by such a municipality for schools in such municipality. <br /> <br /> Present law exempts Hamilton and Bradley counties from following the current distribution method, and both counties adhere to the previous distribution method. This bill does not affect those counties' distribution method.<br /> <br />