Amends TCA Section 7-88-106.

Present law generally provides that, if a municipality or public authority has financed, constructed, leased, equipped, renovated or acquired a qualified public use facility within a tourism development zone, state and local sales and use taxes are apportioned and distributed to the municipality in an amount equal to the incremental increase in state and local sales and use tax revenue derived from the sale of goods, products and services within the tourism development zone in excess of base tax revenues, excluding any increase in the state rate for sales and use tax. <br /> <br /> Present law further provides that, subject to the recommendation of the comptroller of the treasury and approval by the state building commission no later than December 31, 2018, the portion of the incremental increase in the local sales and use tax revenue must be apportioned and distributed for one qualified public use facility if placed in service no later than December 31, 2022, and if such facility consists of a hotel with at least 500 rooms and related retail, parking, and commercial uses. No state sales and use tax revenue may be allocated to the municipality pursuant to such apportionment and distribution. Apportionment and distribution of local tax revenue will continue until the earlier of:<br /> <br /> (1) 30 years from the date it is reasonably anticipated that the facility will commence operations as a public use facility; or<br /> (2) The date the cumulative amount apportioned and distributed to the municipality with respect to such facility equals the indebtedness of the municipality or public authority, plus interest thereon, related to the cost of the public use facility payable from such amount.<br /> <br /> This bill changes present law to provide that, after the apportionment and distribution of state sales and use taxes have ceased with respect to one qualified public use facility that consists of a hotel with at least 500 rooms and related retail, parking, and commercial uses, that was approved by the state building commission, on recommendation of the comptroller, prior to December 31, 2018, and placed in service no later than June 30, 2024, the apportionment and distribution of the incremental increase in the local sales and use tax revenue with respect to such qualified public use facility must continue until the earlier of the events described in (1) and (2).<br /> <br /> ON FEBRUARY 25, 2019, THE SENATE ADOPTED AMENDMENT #2 AND PASSED SENATE BILL 497, AS AMENDED.<br /> <br /> AMENDMENT #2 changes to December 31, 2024, the date by which the hotel must be placed in service to qualify for the local sales tax allocation that will be earmarked for paying off the project's debt and specifies that the apportionment and distribution of the incremental increase in local sales and use tax revenue associated with the qualified hotel facility and related uses does not affect the apportionment and distribution of state and local sales and use taxes with regard to a qualified public use facility in a tourism development zone.<br /> <br />