Amends TCA Title 5; Title 6; Title 7; Title 13; Title 67 and Title 68.

ON APRIL 26, 2021, THE SENATE ADOPTED AMENDMENT #1 AND PASSED SENATE BILL 1030, AS AMENDED. AMENDMENT #1 rewrites this bill and revises the present law provisions governing the hotel occupancy privilege tax. Under present law, each municipality (defined as an incorporated city that has adopted home rule) is authorized to levy by ordinance a privilege tax upon the privilege of occupancy in any hotel of each transient in an amount not to exceed 5 percent of the consideration charged by the operator. Also, Memphis is authorized to levy by one or more ordinances a privilege tax upon the privilege of occupancy in any hotel of each transient in an amount not to exceed an aggregate of 5 percent of the consideration charged by the operator. In order for an ordinance authorizing such privilege tax to take effect, it must be approved by a two-thirds vote of the municipal legislative body at two consecutive, regularly scheduled meetings, or unless it is approved by a majority of the number of qualified voters of the municipality voting in an election on the question of whether or not the tax should be levied. If there is a petition of 10 percent of the qualified voters who voted in the municipality in the last gubernatorial election that is filed with the county election commission within 30 days of final approval of such ordinance by the municipal legislative body, then the county election commission must call an election on the question of whether or not the tax should be levied. This amendment revises the above provisions to instead provide that a municipality (defined by this amendment as an incorporated city or town or a county, but does not include a county with a metropolitan form of government) may levy, modify, or repeal a privilege tax upon the privilege of occupancy in a hotel by ordinance or resolution subject to the restrictions of present law, as amended by this amendment. Under this amendment, the tax must not exceed 4 percent of the consideration charged to a transient by the hotel operator. Subject to other provisions of this amendment (discussed below), a tax upon the privilege of occupancy in a hotel levied or authorized before the effective date of this bill as amended by a municipality that exceeds the limit set in this amendment will remain in full force and effect. This amendment specifies that it does not void or modify a private act, ordinance, or resolution levying or authorizing the levy of a tax upon the privilege of occupancy in a hotel that existed on or before the effective date of this bill as amended, except as provided otherwise in this amendment, as discussed below. Under present law, the proceeds received by the municipality from the tax must be designated and used for purposes authorized in the ordinance levying the tax. This amendment rewrites this provision to instead require that the revenue received by a municipality from the tax be designated and used for the promotion of tourism and tourism development. However, a municipality levying a tax upon the privilege of occupancy before the effective date of this bill as amended may continue to use the revenue in the manner prescribed in the private act, resolution, or ordinance levying the tax. Under present law, a private act that authorizes a city or county to levy a tax on the privilege of occupancy of a hotel must limit the application of such tax as follows: (1) A city may only levy such tax on occupancy of hotels located within its municipal boundaries; (2) A city may not levy such tax on occupancy of hotels if the county in which such city is located has levied such tax prior to the adoption of the tax by the city; and (3) A county may only levy such tax on occupancy of hotels located within its boundaries but outside the boundaries of any municipality that has levied a tax on such occupancy prior to the adoption of such tax by the county. The above-described limitations on the tax apply prospectively only and all private acts levying taxes on the privilege of occupancy of hotels enacted prior to May 12, 1988, remain in full force and effect. Also, present law contains several exceptions to the above-described limitations on the tax. This amendment deletes the above-described limitations on the tax and all present law exceptions to the limitations. This amendment provides that a privilege tax upon the privilege of occupancy in a hotel in effect, or any authorization to levy such privilege tax granted, under a private act, resolution of a county, ordinance of a city, or present law as it existed before the effective date of this bill as amended will remain in full force and effect on and after the effective date of this bill as amended. However, a municipality with a preexisting privilege tax or authority may not change the use of the revenue except in accordance with present law as amended by this bill. A municipality with an authorized tax upon the privilege of occupancy on or before the effective date of this bill as amended may not adopt a tax under present law as amended by this bill, unless the municipality repeals the preexisting authorization. ON MAY 4, 2021, THE HOUSE SUBSTITUTED SENATE BILL 1030 FOR HOUSE BILL 1515, ADOPTED AMENDMENT #2, AND PASSED SENATE BILL 1030, AS AMENDED. AMENDMENT #2 changes this bill's effective date from "upon becoming law" to "July 1, 2021".