Amends TCA Title 4, Chapter 3, Part 7; Title 57 and Title 67, Chapter 6.

Present law generally earmarks 4.6030 percent of sales and use tax revenues for allocation to incorporated municipalities in proportion to their populations.<br /> <br /> This bill authorizes a county bordering on, or crossed by, the Pigeon River upstream from the point that it joins the French Broad River, to elect to be a Pigeon River economic recovery district for purposes of sales and use tax distribution. This bill also authorizes a municipality within any such county to elect to be a Pigeon River economic recovery district. A two-thirds vote of the applicable legislative body will be required to make any such election. The provisions of this bill authorizing election of Pigeon River economic recovery district status are repealed July 1, 2048.<br /> <br /> In lieu of the allocation of sales and use tax revenue under present law, this bill requires that a Pigeon River economic recovery district receive 4.6030 percent of the tax actually collected and remitted by dealers within the boundaries of the district. A distribution made to a Pigeon River economic recovery district must be earmarked and paid from the general fund. If a payment is made to a Pigeon River economic recovery district, then the amount which would have been received by the district had the district not exercised the election must be earmarked and allocated to the general fund. The revenue retained pursuant to an election of Pigeon River economic recovery district status, less the amount that would have been received by the district had the district not exercised the election, must be used solely for: capital projects; infrastructure; economic development; promotion and support of tourism in the jurisdiction; promotion and support of tourism in conjunction with other jurisdictions so electing Pigeon River economic recovery district status; and debt service related to the financing of capital projects or infrastructure that is incurred within five years following the date of election by an electing county or municipality (any such indebtedness must not be issued for a term longer than 20 years).<br /> <br /> The full text of this bill specifies the process for election of Pigeon River economic recovery district status by both a county and a municipality within the county.<br /> <br /> This bill specifies that it does not supersede tax increment financing agreements applicable to properties within a Pigeon River economic recovery district.<br /> <br /> This bill authorizes the commissioner of revenue to promulgate rules to implement the provisions of this bill concerning distributions to Pigeon River economic recovery districts.<br /> <br /> This bill makes commercial enterprises located in a county or municipality that elects Pigeon River economic recovery district eligible to apply for a license to serve alcoholic beverages for on-premises consumption. This bill authorizes the executive director of the alcoholic beverage commission to promulgate rules to effectuate the provisions of this bill concerning licensure for sales of alcoholic beverages.<br /> <br /> This bill takes effect upon becoming a law for rulemaking purposes and January 1, 2024, for all other purposes.<br />