Amends TCA Title 7 and Title 67.

This bill removes authorization for the metropolitan government of Davidson County to levy up to 2 percent in additional hotel occupancy taxes and redirects hotel occupancy tax proceeds that are collected in Davidson County from convention center funding so that all such proceeds may be used only for direct promotion of tourism, tourist-related activities, and deposit into the general fund.<br /> <br /> This bill removes authorization for Davidson County to levy a $2.50 per-night hotel and shot-term rental room tax, the proceeds of which are presently deposited into the convention center fund to pay costs incurred in modification or construction of a publicly owned convention center.<br /> <br /> This bill removes authorization for Davidson County to levy a $2.00 per-trip airport transit tax, the proceeds of which are presently deposited into the convention center fund to be used for the same purposes as described above.<br /> <br /> Present law generally authorizes industrial development corporations to, among other powers, acquire, improve, and maintain projects. A corporation may issue bonds for such purpose. In a municipality that has approved a central business improvement district, present law includes within the definition of "project" a hotel, including any conference or convention center facilities related to the hotel, or motel within an area that could provide substantial sources of tax revenues or economic activity to the municipality. This bill removes conference and convention center facilities related to a hotel from the definition of "project".<br /> <br /> Generally, the Convention Center and Tourism Development Financing Act of 1998 authorizes a municipality or public authority to apply to the department of finance and administration for certification of a tourism development zone and planned public use facility as a qualified public use facility. A municipality or public authority is eligible to receive allocations of state and local sales and use taxes based on increased collections of revenue from such taxes within the tourism development zone to pay the cost of the public use facility. This bill changes the Convention Center and Tourism Development Financing Act of 1998 by removing from the definition of "qualified public use facility" an event facility that requires, on or after January 1, 2007, a local investment of public or private funds of not less than $200,000,000.<br /> <br /> This bill removes authorization for a metropolitan government that has created a tourism development zone pursuant to the Convention Center and Tourism Development Financing Act of 1998, and which tourism development zone completely includes one or more central business improvement districts, to impose an additional fee (up to 0.50 percent) on the sales price of services and tangible personal property sold at retail within one central business improvement district located within the tourism development zone.<br /> <br /> This bill removes authorization for Davidson County to levy a 1 percent rental car surcharge, the proceeds of which are presently deposited into the convention center fund to be used for the same purposes as described above.<br /> <br /> Present law requires that moneys received from sales and use taxes equal to the amount of state and local sales tax revenue derived from the sale of taxable goods and services on the premises of a convention center that qualifies as a public use facility under the Convention Center and Tourism Development Financing Act of 1998, or any related ancillary facilities, must be directed to the entity that is responsible for retiring the debt for the convention center. The apportionment and distribution will continue for 30 years, or until the debt on the convention center is retired, whichever is sooner. This bill requires the apportionment and distribution to cease on June 30, 2023. This bill also requires that similar apportionments and distributions end on June 30, 2023, for one or two new hotels constructed in connection with the construction of the convention center and a hotel within the footprint of the convention center that undertakes a significant capital improvement program in connection with the construction of the convention center.<br /> <br /> ON APRIL 6, 2023, THE SENATE ADOPTED AMENDMENT #1 AND PASSED SENATE BILL 648, AS AMENDED.<br /> <br /> AMENDMENT #1 rewrites this bill to make the following changes and additions to the Convention Center Authorities Act of 2009:<br /> <br /> (1) Adds to a statement of legislative findings to specify that purposes of the Act include facilitating the acquisition, construction, and rehabilitation of safety and cleanliness operations and infrastructure associated with convention centers. This amendment also removes statements of findings concerning what is provided by a convention center facility and the efficacy of convention center authorities;<br /> <br /> (2) Requires that, if a convention center authority created under the Act is apportioned state and local sales and use tax revenue pursuant to the Convention Center and Tourism Development Financing Act of 1998 as a result of the financing by the authority of a qualified public use facility or qualified associated development, then excess tax revenues and prior accumulated excess tax revenues of the authority are only applied to the following purposes, as determined by the board of directors:<br /> <br /> (A) Retirement of debt or other contractual obligations related to the facility or development;<br /> <br /> (B) The payment of capital expenses related to the facility or development and the funding of cash reserves for the expenses; provided, however, that if the aggregate of all capital expenses related to such facilities and developments is budgeted, projected, or expected to exceed $25,000,000 in a fiscal year, then the capital expenses must be preapproved by the commissioner of finance and administration; and<br /> <br /> (C) If the source of revenues is permitted by applicable law to be applied to the payment of operating expenses, the payment of operating expenses associated with the facility or development and other expenses that are within the purposes for which convention center authorities are created; and<br /> <br /> (3) Adds a requirement that, if a convention center authority is apportioned tax revenue (as described in (2)), then the comptroller of the treasury, the state treasurer, and the secretary of state, or their designees serve as non-voting ex officio members of the authority's board of directors. Under present law, an authority's board consists of seven members who are appointed by the chief executive of the municipality and conformed by the city council.<br />