Amends TCA Title 67, Chapter 6.

Present law establishes the allocation of state sales and use tax revenue, which, generally, is allocated to the general fund, for educational purposes, and to local governments, with certain exceptions and special allocations. One such special allocation is allocation of such revenue to commercial development districts in economically distressed counties experiencing persistent high unemployment and traditionally low levels of family income. Generally under that special allocation, an amount is apportioned and distributed to the county, the municipality, or the industrial development corporation equal to the amount of state sales tax revenue derived from 5.5 percent of the tax rate imposed on property sold at retail, on all sales in the commercial development district and the amount of local sales tax revenue not dedicated for school purposes derived from all sales in the commercial development district in excess of base tax revenues. Under present law, a county that borders at least three distressed rural counties identified pursuant to present law is considered as a county eligible for this special allocation of sales and use tax revenue; this bill revises the description of such an eligible county to be "a county that borders at least three distressed rural counties in at least three fiscal years since fiscal year 2016-2017."<br /> <br /> ON MARCH 25, 2021, THE HOUSE ADOPTED AMENDMENT #1 AND PASSED HOUSE BILL 1042, AS AMENDED.<br /> <br /> AMENDMENT #1 adds in the description to be an eligible county that the county's governing body, or the governing body of a municipality within the county, must have passed a resolution or other official action prior to January 1, 2021, seeking to establish or certify a commercial development district within the county or municipality and receive an allocation of sales and taxes under the provisions described above in the bill summary.<br />