ORDINANCE NO. BL2014-665

An ordinance amending Ordinance No. O65-464, as amended by Ordinances Nos. O68-525 and 080-294, relating to the levy of a local option sales and use tax by the Metropolitan Government to increase the amount of the tax for the purpose of funding mass transit and providing additional funding for Metropolitan Nashville Public Schools.

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

WHEREAS, it is the express intention of the Metropolitan County Council that the increased local option sales tax revenue be divided proportionally between the Metropolitan Board of Public Education and the Metropolitan Transit Authority to provide a dedicated funding source for mass transit.

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 and 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. The proceeds generated by the additional one-half percent increase in the local option sales and use tax pursuant to this Ordinance shall be divided as follows:
A. Fifty percent (50%) of the revenue shall be dedicated for mass transit operational and/or capital funding.
B. Fifty percent (50%) of the revenue shall be appropriated to the Metropolitan Board of Public Education as required by T.C.A. § 67-6-712.

Section 3. 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 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, for the purpose of providing increased funding for public mass transit and for the Metropolitan Nashville Board of Public Education, 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: Charlie Tygard