An ordinance to amend Chapter 5.12 of the Metropolitan Code of Laws relative to the hotel occupancy privilege tax.

WHEREAS, Substitute Ordinance No. SO99-1678 amended Chapter 5.12 of the Metropolitan Code of Laws to provide an increase in the tourist accommodation tax upon the privilege of occupancy in any hotel and/or motel within the Metropolitan Government from four percent (4%) to five percent (5%) pursuant to Tennessee Code Annotated, Section 7-4-102; and

WHEREAS, the proceeds from the additional one percent (1%) may be used only for the direct promotion of tourism; and

WHEREAS, pursuant to Substitute Ordinance No. SO99-1678, the five percent (5%) tax rate is to sunset on June 30, 2002 and revert back to four percent (4%); and

WHEREAS, there is pending legislation in the General Assembly which would remove the June 30, 2002, sunset provision; and

WHEREAS, the Metropolitan Council desires to amend the Metropolitan Code of Laws to remove the sunset provision, should the General Assembly enact said pending legislation.

NOW, THEREFORE, BE IT ENACTED BY THE COUNCIL OF THE METROPOLITAN GOVERNMENT OF NASHVILLE AND DAVIDSON COUNTY:

Section 1. Section 5.12.020 of the Metropolitan Code of Laws is hereby amended by deleting the phrase "There is levied a privilege tax upon the privilege of occupancy in any hotel of each transient in an amount of four percent of the consideration charged by the operator; provided that, between July 1, 1999, and June 30, 2002,", thus causing Section 5.12.020 to read as follows:

There shall be levied a privilege tax upon the privilege of occupancy in any hotel of each transient in an amount of five percent of the consideration charged by the operator. The tax so imposed is a privilege tax upon the transient occupying such room and is to be collected and distributed as provided in this chapter.

Section 2. Section 5.12.060(A) is amended by deleting the paragraph in its entirety and replacing it with the following subsection A.:

The proceeds from the tax levied in this chapter shall be retained by the metropolitan government and distributed as follows:

1. Two-fifths of the proceeds shall be used for direct promotion of tourism;

2. One-fifth of the proceeds shall be used for tourist-related activities;

3. One-fifth of the proceeds shall be used for the constructing, financing and operation of a convention center;

4. One fifth of the proceeds shall be deposited in the general fund of the metropolitan government.

Section 3. This ordinance shall take effect from and after its passage the welfare of the Metropolitan Government requiring it.

Sponsored By: Howard Gentry