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

Whereas, the Metropolitan Government previously approved a five percent (5%) privilege tax upon the occupancy in any hotel or motel within the Metropolitan Government pursuant to Tennessee Code Annotated, Section 7-4-101 et seq.; and

Whereas, the Metropolitan Government provided that the tax would be reduced to four percent (4%) on June 30, 2002, in keeping with the sunset provision in Tennessee Code Annotated, Section 7-4-102; and

Whereas, the General Assembly has enacted an amendment to Tennessee Code Annotated, Section 7-4-102 deleting the sunset provision in its entirety; and

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

Whereas, the Metropolitan Council desires to amend the Metropolitan Code of Laws to maintain the hotel occupancy privilege tax at five percent (5%);

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 amended by deleting the first sentence and replacing it with the following:

There is 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.

Section 2: Subsection 5.12.060(A) of the Metropolitan Code of Laws is amended by deleting the text of the subsection in its entirety and replacing it with the following:

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

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

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

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

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, Jim Shulman, Leo Waters, David Briley, Tony Derryberry

LEGISLATIVE HISTORY
Introduced:	May 9, 2002
Passed First Reading:	May 9, 2002
Referred to:	Budget & Finance Committee
Passed Second Reading:	May 21, 2002
Passed Third Reading:	June 4, 2002
Approved:	June 6, 2002
By: