Amends TCA Title 7, Chapter 88.

Generally under present law, if a municipality or public authority has financed, constructed, leased, equipped, renovated or acquired a qualified public use facility within a tourism development zone, then state and local sales and use taxes are apportioned and distributed to the municipality in an amount equal to the incremental increase in state and local sales and use tax revenue derived from the sale of goods, products and services within the tourism development zone in excess of base tax revenues, excluding any increase in the state rate for sales and use tax. For purposes of the Act, present law defines "base tax revenues" as the revenues generated from the collection of state and local sales and use taxes from all businesses within the applicable tourism development zone as of the end of this state's fiscal year immediately prior to the year in which the municipality or public authority is entitled to receive an allocation of tax revenue pursuant to the Act, adjusted annually after the first year by a percentage equal to the percentage of change in the collection of state and local sales and use taxes derived from the sale of goods, products and services for the entire county in which the public use facility is located for the preceding fiscal year. <br /> <br /> Public Chapter 1029 of 2022 added that, notwithstanding the above, "base tax revenues" for the tourism development zones described below does not include local sales or use taxes collected from dealers with no physical presence in this state. The tourism development zones to which the exception in Public Chapter 1029 of 2022 apply are privately owned or operated tourism attractions involving an aggregate investment of public and private funds in excess of $75 million that is designed to attract tourists to the state, including a cultural or historical site, a museum or visitors center, a recreation or entertainment facility, and all related hotel or hotels, convention center facilities, administrative facilities and offices, mixed use facilities, restaurants and other tourism amenities constructed or acquired as a part of the attraction that is located in Nashville/Davidson County.<br /> <br /> This bill makes the exception in Public Chapter 1029 of 2022 applicable to all tourism development zones.<br />