Amends TCA Title 3; Title 48; Title 63 and Title 67.

ON APRIL 19, 2021, THE SENATE ADOPTED AMENDMENT #2 AND PASSED SENATE BILL 897, AS AMENDED. AMENDMENT #2 rewrites the bill. This bill makes permanent the removal of the cap on the amount of state shared sales tax revenue remitted to premiere type tourist resort municipalities. Under the present law provisions governing the distribution of sales and use tax revenue, certain premier type tourist resorts (which include Sevierville and Gatlinburg) may elect to receive 4.6030 percent of the tax actually collected and remitted by dealers within the boundaries of such resort, instead of the standard distribution provided for under present law. The collective amounts paid under those provisions are capped at the collective amounts paid under the provisions for the 1999-2000 fiscal year. In 2017, the legislature suspended application of the cap in the 2017-2018 fiscal year through the 2020-2021 fiscal year. This bill removes the suspension of the cap on the amount of state shared sales tax remitted to premiere type tourist resorts as described above and provides that for any amounts that would have been paid but for the cap, those amounts will be allocated as follows: (1) During the 2021-2022 fiscal year, 50 percent to the county in which the municipality is located for use by the county for educational purposes and 50 percent to the municipality where the sale occurred; and (2) During the 2022-2023 fiscal year and subsequent fiscal years, 50 percent to the county in which the municipality is located, for use by the county for educational purposes, 25 percent to the municipality where the sale occurred, and 25 percent to the state general fund.