Amends TCA Title 67, Chapter 6.

Present law generally requires that sales and use tax revenue be allocated as follows: (1) 29.0141 percent to the general fund; (2) 65.0970 percent to educational purposes; and (3) 4.6030 percent to incorporated municipalities. Notwithstanding the general allocation requirement, present law authorizes municipalities that construct various types of sports stadiums to have a portion of sales and use tax revenue reallocated for the use of the municipal sports authority in an amount equal to the sales and use tax revenue generated from sales of admissions to, and concessions and services at, the sports stadium. One such provision of present law specifically authorizes a municipality that builds a baseball stadium for a minor league affiliate of a major league baseball team playing at the Class AA level or higher to have such a reallocation made for up to 30 years from the time that the franchise begins operating in the new stadium. This bill adds that, for any municipality located in Davidson, Knox, or Shelby county, if a baseball stadium for a minor league affiliate of a major league baseball team playing at the Class AA level or higher is placed in service after December 31, 2020, and on or before December 31, 2025, then the amount of state and local tax revenue distributed to the sports authority will include all such revenue derived from any sales that occur within a distance of one-quarter mile from the center point of the stadium to the extent such state and local tax revenues exceed any such state and local tax revenues collected from the same area in the fiscal year ending June 30, 2020. ON APRIL 27, 2021, THE HOUSE ADOPTED AMENDMENT #1 AND PASSED HOUSE BILL 1204, AS AMENDED. AMENDMENT #1 rewrites this bill to provide that if a stadium as described above in the bill summary is placed in service in one of the above-described counties after December 31, 2020, and on or before December 31, 2025, and the projected cost of private development expected by the county to be constructed proximate to the stadium exceeds $100 million, then the following allocation of state and local tax revenue will apply: (1) An amount must be apportioned and distributed to the entity that is responsible for retirement of the debt on the stadium equal to the amount of state and local sales tax revenue derived from any sale of admission to events occurring within the stadium and from all sales of food, drinks, merchandise, and parking sold from a location on the premises of the stadium in conjunction with any events occurring within the stadium, which is deemed to include sales of souvenirs and other merchandise at a team store located on the premises of the stadium regardless of whether such sales occur during an event or during other store hours; and (2) All amounts received by the entity that is responsible for retirement of the debt on the stadium under this amendment must be deposited into a fund entitled the "minor league baseball stadium fund," which must be used exclusively to pay debt service related to the financing or refinancing of the initial construction of the stadium and debt service related to the financing or refinancing of the initial public infrastructure for such stadium construction. Any refinancing must be only up to the outstanding principal amount, and the term of any refinancing shall not extend beyond the date of the original term. For purposes of this amendment, "initial public infrastructure" means, in regard to the payment of debt service, those public infrastructure costs for stadium construction that are incurred within the first three years following the effective date of this bill as amended. If the funds received by the entity that is responsible for retirement of the debt on the stadium in any fiscal year exceed the total of the debt service requirements for that year, the surplus funds thus accruing must either be applied to the prepayment of principal of any financing or refinancing or be retained by such entity as a reserve fund to be used exclusively for future debt service requirements pursuant to this subdivision amendment. The allocations will continue for a period of 30 years from the date the first game is played in the stadium by the minor league baseball team, until such debt service is retired, until a sufficient reserve fund has been established for the retirement of such debt service, or until June 30, 2053, whichever occurs first. For purposes of administering this amendment, the entity that is responsible for retirement of the debt on the stadium must, by July 31 of each year, report its debt amortization schedule, minor league baseball stadium fund balance, and reserve fund balance to the commissioner of revenue. Additionally, in the event that a sufficient reserve fund is established for the retirement of such debt service, the presiding officer of the governing body of the entity that is responsible for the retirement of the debt on the stadium must certify the date of such event and provide notice to the commissioner of revenue within 30 days following such event. This amendment also adds to the local sales and use tax provisions that if a franchise for a minor league affiliate of a major league baseball team (American or National League) playing at the Class AA level or higher locates in a municipality in this state and if the municipality constructs a new stadium for the franchise, then local sales tax must be apportioned and distributed to the municipality as provided in amendment.