Amends TCA Title 7, Chapter 3 and Title 67, Chapter 6.

This bill provides for the allocation of certain revenue from state and local sales taxes to pay for the capital and operation expenses associated with a motor sports facility, as discussed below. MUNICIPAL STADIUM SEAT PRIVILEGE TAX Present law authorizes a metropolitan government to levy a tax, upon 2/3 vote of the legislative body, upon the privilege of attending any event at the municipal stadium in an amount not to exceed 10 percent of the consideration charged for spectators attending the event. Subject to the 10-percent limitation, the amount of the tax may be established from time to time by ordinance of the local legislative body of the metropolitan government; provided, however, that the tax as adopted by the local legislative body shall not be at a rate or in an amount that would create a reimbursement obligation to the primary tenant of the municipal stadium under any lease existing on January 1, 2009, so long as the lease is in effect. The proceeds from tax must be used by the metropolitan government exclusively to defray the cost of constructing, operating, renovating, expanding or improving the municipal stadium or for the payment of debt service on bonds or other indebtedness issued by the metropolitan government or any public instrumentality of the metropolitan government for the construction, operation, renovation, expansion or improvement of the municipal stadium. For purposes of the above-referenced privilege tax, "municipal stadium" means a structure with seats for not less than 30,000 spectators, which is constructed after July 7, 1977, and which is used primarily for sporting events and other related activities and is currently financed or was financed by general obligation bonds, revenue bonds or other indebtedness issued by a metropolitan government or any public instrumentality of a metropolitan government. This bill extends this provision to apply to a structure that is improved after July 7, 1977, and has such a seating capacity. SALES AND USE TAX REVENUE ALLOCATION This bill adds the special allocation of state and local sales and use tax revenue provisions so that, in a county with a population of more than 500,000 (only Davidson and Shelby counties) and with a motor sports facility less than one mile in circumference, if the municipality or any board or instrumentality of the municipality reimburses the state for any costs to reallocate apportionments of the tax revenue under this bill, then an amount will be apportioned and distributed to the municipality equal to the amount of state tax revenue derived from the sale of admissions to all events occurring at the motor sports facility and also all sales of food, drinks, and merchandise sold on the premises in conjunction with those events, and all related services that are otherwise subject to sales tax to specifically include, but not be limited to, parking. The amount distributed to the municipality must be for the exclusive use of the agency formally designated by the municipality to govern the operations of the motor sports facility and must be utilized exclusively for capital and operation expenses associated with the motor sports facility. ON MAY 4, 2021, THE HOUSE ADOPTED AMENDMENT #1 AND PASSED HOUSE BILL 975, AS AMENDED. AMENDMENT #1 revises the revenue sources to which this bill applies to include "parking, which includes parking of recreational vehicles and other vehicles, regardless of whether such vehicles are used for overnight accommodations or connected to electric and water services" instead of "related services that are otherwise subject to sales tax to specifically include parking." This amendment also clarifies that this bill applies to all items specified in this bill as amended that are sold from a location on the premises of the motor sports facility in conjunction with an event occurring at the motor sports facility. This amendment also changes this bill's effective date from "upon becoming law" to "July 1, 2021".