ORDINANCE NO. BL2008-251

An ordinance amending Title 5, Chapter 5.12, Article II of the Metropolitan Code to increase the additional hotel occupancy privilege tax by fifty cents, where increased revenue shall be deposited in a fund entitled “The Event and Marketing Fund,” where such increase shall expire on May 20, 2014.

WHEREAS, the Metropolitan Code currently authorizes a two dollar ($2.00)privilege tax upon the occupancy of each hotel room within the territory of the Metropolitan Government; and,

WHEREAS, the Metropolitan Government of Nashville and Davidson County currently requires all revenue collected pursuant to Title 5, Chapter 5.12, Article II to be deposited into a fund entitled “The Convention Center Fund”; and,

WHEREAS, 2008 Tenn. Pub. Act 1004 authorizes a metropolitan government to increase the additional hotel occupancy privilege tax up to a total of two dollars and fifty cents ($2.50); and,

WHEREAS, 2008 Tenn. Pub. Act 1004 requires that upon adoption of an ordinance by the metropolitan council in a county having a metropolitan government all revenue received pursuant to the additional hotel occupancy tax which exceeds two dollars to be deposited in a metropolitan government fund entitled “The Event and Marketing Fund”; and,

WHEREAS, for the approval of expenditures of “The Event and Marketing Fund,” 2008 Tenn. Pub. Act 1004 provides that the metropolitan mayor appoint a committee to be attached for administrative purposes to a convention and visitors bureau or similar entity that has been approved by the metropolitan council and the metropolitan mayor; and,

WHEREAS, 2008 Tenn. Pub. Act 1004 requires any hotel occupancy privilege tax in excess of two dollars ($2.00) authorized by the Act expire six years from the effective date of the Act; and,

WHEREAS, it is in the interest of the citizens of The Metropolitan Government of Nashville and Davidson County that Title 5, Chapter 5.12, Article II of the Metropolitan Code be amended to increase the additional hotel occupancy tax and create a fund entitled “The Event and Marketing Fund” for the deposit of all revenues exceeding two dollars ($2.00); and,

Whereas, it is also in the interest of the citizens of The Metropolitan Government of Nashville and Davidson County that a committee attached to a convention and visitors bureau or similar entity for administrative purposes use the additional hotel occupancy tax funds to support events or projects which are found by the committee to have a cumulative total economic impact on The Metropolitan Government of Nashville and Davidson County of greater than five million dollars ($5,000,000.00); and,
WHEREAS, it is also in the interest of the citizens of the Metropolitan Government of Nashville and Davidson County that the entity with which the Metropolitan Government contracts for tourism and convention sales and marketing services be approved as the entity under which a committee is appointed to administer “The Event and Marketing Fund,” where such administration should continue until the expiration of said contract, including any extensions or renewal thereof, or the expiration of the additional hotel occupancy tax act, whichever occurs first.

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

Section 1. That Section 5.12.120 shall be amended by deleting the phrase “additional two dollars privilege tax” and substituting instead the phrase “additional privilege tax of two dollars and fifty cents ($2.50).”

Section 2. That Section 5.12.130 shall be amended by deleting the section in its entirety and substituting instead the following:

A. Revenues up to two dollars ($2.00) received by the metropolitan government from the privilege tax imposed pursuant to this article shall be deposited into a metropolitan government fund entitled “The Convention Center Fund” and shall be used for the purpose of paying costs incurred in modification or construction of a publicly-owned convention center in excess of four hundred million dollars and costs located within the territory of the metropolitan government. Such revenues may also be used for the operation, promotion, management and marketing of such a convention center. If the revenues from such surcharge or tax in any fiscal year exceed the total of such debt service requirements from that year, such surplus revenue thus accruing shall be retained by the metropolitan government as a reserve fund for future convention center debt service.

B. Revenues which exceed two dollars ($2.00) received by the metropolitan government from the privilege tax imposed pursuant to this article shall be deposited into a metropolitan government fund entitled “The Event and Marketing Fund.” The Fund expenditures shall be administered by a committee which, for administrative purposes, shall be attached to the Nashville Convention & Visitors Bureau, or similar entity that has been approved by the metropolitan council and the mayor, and is under contract to provide tourism and convention sales and marketing services to the Metropolitan Government of Nashville and Davidson County. The administration of funds shall continue until the expiration of said contract, including any extensions or renewal thereof, or the expiration of the additional hotel occupancy tax act, whichever occurs first. All expenditures from “The Event and Marketing Fund” shall be subject to the approval of the director of finance of the Metropolitan Government of Nashville and Davidson County.

C. Revenues which exceed two dollars ($2.00) received by the metropolitan government from the privilege tax imposed pursuant to this article shall be used by the committee to support events or projects which are found by the committee to have a cumulative total economic impact on the Metropolitan Government of Nashville and Davidson County of greater than five million dollars ($5,000,000.00).

Section 3. That Section 5.12.140 be deleted in its entirety and substituted instead with the following:

A. The additional hotel occupancy privilege tax up to two dollars ($2.00) authorized by this article shall terminate once the total bonded indebtedness incurred for the modification or construction of such convention center facility by the metropolitan government has been paid in full as to bond principal and interest, including the expenses of bond sale or sales, and the metropolitan council repeals the provisions of this article. Provided, however, that any funds and interests remaining in the reserve fund after all obligations imposed under the provision of this part have been fulfilled, shall be used by the governmental board or agency responsible for the operation of the convention center for use by it in the operation, promotion and advertisement of the convention center facilities.

B. The additional hotel occupancy privilege tax which exceeds two dollars ($2.00) authorized by this article shall terminate six years from the effective date of 2008 Tenn. Pub. Act 1004.

Section 4. This ordinance shall take effect from and after its final passage, the welfare of The Metropolitan Government of Nashville and Davidson County requiring it.

Sponsored by: Greg Adkins, Erik Cole

LEGISLATIVE HISTORY
Introduced:	July 15, 2008
Passed First Reading:	July 15, 2008
Referred to:	Budget & Finance Committee Convention and Tourism Committee
Passed Second Reading:	August 7, 2008
Passed Third Reading:	August 19, 2008 - Roll Call Vote
Approved:	August 22, 2008
By: