An ordinance amending Ordinance No. 65-464, as amended by Ordinance No. 68-525, as amended by Ordinance No. 080-294, relating to the levy of a local option sales and use tax by the Metropolitan Government in accordance with the provisions of Tennessee Code Annotated, Sections 67-6-701 through 67-6-716.

WHEREAS, the Tennessee General Assembly pursuant to Chapter 329 of the 1963 Public Acts and subsequent amendments thereto (T.C.A., §§ 67-6-701 through 67-6-716), has authorized local governments to levy a local option sales and use tax; and

WHEREAS, pursuant to referendum election held in 1965 and again in 1968 and again in 1980, the Metropolitan Government has levied a local option sales and use tax pursuant to the terms and limitations contained in T.C.A., § 67-6-701, et seq.; and

WHEREAS, T.C. A. §67-6-705 and §67-6-706 provide that the operation of the ordinance levying the local option sales tax shall be subject to approval of the voters of the Metropolitan Government by referendum; and

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

SECTION 1. That Ordinance No. 65-464, as amended by Ordinance No. 68-525, as amended by Ordinance No. 080-294 of The Metropolitan Government of Nashville and Davidson County (Metropolitan Government), levying a local option sales and use tax as authorized under the provisions of Chapter 6 of Title 67 of the Tennessee Code Annotated is hereby amended by levying in the same manner and on the same privileges subject to the Retailers Sales Tax Act under T.C.A., §§ 67-6-101 through 67-6-608, which are exercised in the General Services District of the Metropolitan Government, a tax on all such privileges at a rate of two and three-quarters (2 ¾) percent; provided the tax so levied shall apply only to the first one thousand six hundred ($1,600) dollars on the sale or use of any one article of personal property. Further, the operation of this Ordinance shall be subject to the approval of the voters as required by T.C.A., § 67-6-706 and to the other provisions of T.C.A., § 67-6-701 through 67-6-716.

SECTION 2. If a majority of those voting in the election required by T.C.A., § 67-6-706 vote for the Ordinance increasing the tax pursuant to Section 1 hereof, collection of the tax levied by this Ordinance shall begin upon the effective date of the change in the local tax rate pursuant to T.C.A. §67-6-716.

SECTION 3. It having been determined by the Department of Revenue of the State of Tennessee that it is feasible for this tax to be collected by that Department, the Department of Revenue of the State of Tennessee shall collect the additional tax imposed by this Ordinance concurrently with the collection of the state tax in the same manner as the state tax is collected in accordance with the rules and regulations promulgated by said Department. The Finance Director of the Metropolitan Government is hereby authorized to contract with the Department of Revenue of the State of Tennessee for the collection of the additional tax by said Department and to provide in said contract that said Department may deduct from the tax collected a reasonable amount or percentage to cover the expense of the administration and collection of said tax.

SECTION 4. In the event the tax is collected by said Department, suits for the recovery of any tax illegally assessed or collected shall be brought against the Finance Director of the Metropolitan Government.

SECTION 5. A certified copy of this Ordinance as passed by the Metropolitan County Council and signed by the Metropolitan County Mayor shall be transmitted to the Department of Revenue of the State of Tennessee and the Davidson County Election Commission by the Metropolitan Clerk. This Ordinance shall also be published one time in a newspaper of general circulation in the area of the Metropolitan Government prior to the election called for in Section 2 hereof.

SECTION 6. If any one or more of the provisions of this Ordinance shall ever be held by any court of competent jurisdiction to be invalid, the remaining provisions of this Ordinance shall not be affected thereby, it being the intention of the Metropolitan County Council to enact the remaining provisions of this Ordinance, notwithstanding such provisions which may be held invalid.

SECTION 7. When submitting this Ordinance levying a local option sales and use tax in the area of the Metropolitan Government to a vote of the people in an election as provided in TCA, § 67-6-706, the Davidson County Election Commission shall present the question on the ballot in substantially the following form:

Should the Ordinance of the Metropolitan County Council
increasing the local option sales and use tax in Davidson County
to two and three-quarters (2 ¾) percent become operative?

FOR SAID ORDINANCE ________________________

AGAINST SAID ORDINANCE ___________________

SECTION 8. This Ordinance shall take effect from and after its passage, the welfare of The Metropolitan Government of Nashville and Davidson County requiring it.

Sponsored by: Diane Neighbors

LEGISLATIVE HISTORY
Introduced:	June 7, 2005
Passed First Reading:	June 7, 2005
Referred to:	Budget & Finance Committee
Passed Second Reading:	June 21, 2005 - Roll Call Vote
Passed Third Reading:	June 28, 2005 - Roll Call Vote
Approved:	July 19, 2005
By: