An ordinance authorizing an additional one point of hotel occupancy tax on the Opryland Hotel and redirecting two points of the existing hotel occupancy tax with respect to the Opryland Hotel.

Whereas, Tennessee Code Annotated Sections 7-4-101-111 (such sections as heretofore or hereafter amended, the "Act") authorize counties having a metropolitan form of government, including The Metropolitan Government of Nashville and Davidson County (the "Metropolitan Government"), to levy a privilege tax upon the privilege of occupancy in any hotel of each transient; and

Whereas, the Metropolitan County Council (the "Council") has, pursuant to the Act, heretofore authorized such tax in an amount of 5% of the consideration charged by the operator (as defined in the Act); and

Whereas, amendments made to the Act by the General Assembly of the State of Tennessee (the "General Assembly") in 2007 authorize the Council to impose an additional privilege tax upon the occupancy of a hotel equal to 1% throughout Davidson County or only within a tourist development zone (as defined in Tennessee Code Annotated Section 7-88-103(9)) created within such county; and

Whereas, amendments to the Act made in 2007 by the General Assembly further authorize the Council by resolution to direct that two points of the existing hotel occupancy tax which are derived from a secondary tourist development zone (as defined in Tennessee Code Annotated Section 7-88-103(10)) to be paid to the County for deposits in its general fund, but only to the extent that the same exceeds one-third (1/3) of the proceeds of the hotel occupancy tax from such secondary tourism development zone for the fiscal year ending June 30, 2006, increased by three percent (3%) for each fiscal year thereafter (i.e., in fiscal year 2007, one hundred three percent (103%) of such proceeds for fiscal years 2006; in fiscal year 2008, one hundred three percent (103%) of the amount so calculated by fiscal year 2007, etc.); and

Whereas, the Council, by Resolution No. RS2007-2084, has designated a tourist development zone in which the Opryland Hotel and Convention Center is located and such tourist development zone will, upon approval by the State Commissioner of Finance and Administration and the State Building Commission, be a secondary tourist development zone, and such tourist development zone is hereinafter referred to as the "Gaylord Tourist Development Zone"; and

Whereas, it is contemplated that The Industrial Development Board of the Metropolitan Government of Nashville and Davidson County (the "Board") will issue its revenue bonds (the "Bonds") to finance an addition to the Opryland Hotel and Convention Center.

Now, therefore, be it enacted by the Council of The Metropolitan Government of Nashville and Davidson County:

Section 1: There is hereby levied a privilege tax upon the privilege of occupancy of each transient in any hotel located within the Gaylord Tourist Development Zone in an amount of 1% of consideration charged by the operator. Such tax shall cease to be levied at such time as the Bonds have been paid unless prior to such time such additional 1% tax has been levied throughout Davidson County. If during any time that the tax levied by this Section 1 is in effect, the Metropolitan Council shall impose the additional 1% tax throughout Davidson County, the tax hereby imposed shall be reduced by a like percentage and the proceeds of such 1% county-wide tax derived from the Gaylord Tourist Development Zone shall continue to be deposited as provided in Section 2 of this Ordinance.

Section 2: The proceeds from the tax levied by Section 1 of this ordinance shall be deposited by the Metropolitan Government in its general fund in accordance with Tennessee Code Annotated Section 7-4-102(b)(3).

Section 3: Effective July 1, 2008, Two points of the existing hotel occupancy tax which are derived from the Gaylord Tourist Development Zone shall be paid to the Metropolitan Government for deposit in its general fund, but only to the extent that the same exceeds the proceeds from two points of the tourist accommodation tax from such Gaylord Tourism Development Zone for the fiscal year ending June 30, 2006, increased by three percent (3%) for each fiscal year thereafter (i.e., in fiscal year 2007, one hundred three percent (103%) of such proceeds for fiscal year 2006; in fiscal year 2008, one hundred three percent (103%) of the amount so calculated for fiscal year 2007, etc.).

Section 4: The provisions of Sections 1 and 2 of this Ordinance shall take effect from and after the first day of the calendar month in which the Board issues the Bonds.

Section 5: 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: J. B. Loring, Charlie Tygard, Rip Ryman, Ludye Wallace

LEGISLATIVE HISTORY
Introduced:	July 3, 2007
Passed First Reading:	July 3, 2007
Referred to:	Budget & Finance Committee Convention & Tourism Committee
Passed Second Reading:	July 17, 2007
Passed Third Reading:	August 7, 2007 - Roll Call Vote
Approved:	August 9, 2007
By: