Amends TCA Title 67, Chapter 6, Part 2; Title 67, Chapter 6, Part 3 and Title 67, Chapter 6, Part 7.

This bill revises present law provisions governing the amusement tax, as follows:<br /> <br /> (1) Present law levies a state amusement tax on, among other things, the sales price of each sale at retail of tickets, fees or other charges made for admission to or voluntary contributions made to places of amusement, sports, entertainment, exhibition, display or other recreational events or activities, including free or complimentary admissions when made in connection with a valuable contribution to any organization or establishment holding or sponsoring such activities when the contribution has the value equivalent to the charge that would have otherwise been made.<br /> <br /> This bill adds that the tax described above applies to charges for sales of tickets, fees, or other charges for admission to places of amusement or other recreational events or activities that are conducted or located within this state and to such sales made through an office or other location within or outside this state. This bill requires a person making such sales who has no physical presence in this state to collect and remit the tax as if the person has a physical presence in this state if, within the previous 12-month period, the person's gross revenue from sales made in this state exceeds $100,000 or the person made 200 or more separate sales transactions in this state.<br /> <br /> (2) This bill authorizes a county, by resolution, to levy a county amusement tax, not to exceed 2.75 percent, for tickets and charges for admission to amusements conducted within the county, regardless of whether the sale of tickets or other charges takes place outside the county. The tax will be applicable to the same charges for sales of tickets, fees, or other charges for admission to places of amusement or other recreational events or activities that are subject to the state amusement tax. If the place of amusement or other event or activity is conducted or located within two or more counties, the amount of the tax imposed by any one county will be limited to no more than 1 percent.<br /> <br /> This bill requires every operator to add the amusement tax to each ticket sold and to collect the tax from the consumer and remit the tax to the county trustee. An operator of an amusement is prohibited from advertising or stating in any manner that the amusement tax will be assumed or absorbed by the operator, or that the tax will be added to the consideration, or that, if added, any part will be refunded.<br /> <br /> This bill exempts from the county tax:<br /> <br /> (A) Activities sponsored by any religious organization, charitable organization, or any public or private educational institution where the receipts are devoted exclusively to the use of such organization or institution; and<br /> (B) Charges for admission to any activity sponsored or operated by the county, or to any nonprofit youth sports organizations.<br /> <br /> This bill establishes the requirements for remitting the tax and provisions governing delinquent taxes.<br /> <br /> This bill requires that:<br /> <br /> (A) At least 20 percent of the proceeds from the tax be used for tourism promotion, tourism advertising, or tourism infrastructure;<br /> (B) At least 20 percent of the proceeds from the tax be used by the county sheriff's department for law enforcement and for security at county events;<br /> (C) At least 20 percent of the proceeds from the tax be used by the county ambulance service to provide safety and medical care at county events;<br /> (D) The county legislative body determine how to use proceeds generated pursuant to this bill; and<br /> (E) If at the end of the fiscal budget year all money is not expended, the remaining balance will be transferred to the county general fund balance.<br /> <br /> (3) Present law exempts from the state amusement tax events or activities conducted upon rivers and waterways in this state whose continued use for recreational purposes is contingent upon revenue produced pursuant to agreements entered into between the state of Tennessee and the federal government, or an agency thereof, which agreements provide for the establishment of a trust fund for such purposes; provided, that this exemption only prevails if the annual distribution of funds to the state from such trust fund exceeds that amount of revenue to the state that would otherwise be produced if the amusement tax were imposed on such events or activities, as determined by the fiscal review committee.<br /> <br /> This bill removes the above-described exemption.<br /> <br /> This bill will take effect January 1, 2020.<br /> <br />