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HB 2666

Shelby County - Subject to local approval, changes the conditions under which the occupancy tax will no longer be levied; changes the allocation of the revenue from the occupancy tax if the tenant of the indoor sports facility no longer occupies such facility. - Amends Chapter 131 of the Private Acts of 1969; as amended.

114th Regular Session (2025-2026) Introduced by Kevin Vaughan

Keeps the occupancy tax until the NBA ends its tenancy or June 30, 2050, with 61.25% to CVB and 38.75% to the county once the NBA leaves.

Senate substituted House Bill for companion Senate Bill.
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Bill Summary · HB 2666

Summary of HB 2666 (Session 114) — Shelby County Occupancy Tax Revisions

Purpose and intent

HB 2666 proposes changes to Shelby County’s hotel occupancy tax regime (a local privilege tax on hotel/motel rooms) as it applies to the Cook Convention Center and related occupancy tax provisions historically established by private acts. The bill shifts the conditions under which the occupancy tax would be repealed and reallocates the tax revenue once a major tenant vacancy condition occurs. The bill requires local approval by Shelby County's legislative body to take effect.

Key provisions

  1. Revocation timing tied to NBA tenancy (Section 1)

    • Current law repeals the occupancy tax at the later of:
      • The date the Cook Convention Center bonds (and related bonds) are fully paid, and
      • June 30, 2015.
    • The bill replaces this trigger with:
      • The later of:
      • The date a National Basketball Association (NBA) franchise is no longer a tenant of an indoor sports facility, and
      • June 30, 2050.
    • In other words, the tax continues until the NBA franchise is no longer occupying the venue or until mid-2050, whichever comes first.

  2. Elimination of “ticket shortfall” language (Section 2)

    • Removes the phrase “and ticket shortfall” from Section 10(e)(2)(B). (Exact context not fully provided in the excerpt, but this changes the conditions tied to revenue or offsets related to ticket receipts.)

  3. Revenue allocation after occupancy changes (Section 3)

    • Replacing current subsection (E) with a two-party distribution:
      • 61.25% of tax revenues to the Convention and Visitors Bureau (CVB).
      • 38.75% of tax revenues to Shelby County for any lawful purpose under the act.
    • This allocation applies "upon such time as an indoor sports facility is no longer occupied by a National Basketball Association franchise as a tenant." The change specifies the split and anchors it to the end of NBA occupancy.

  4. Local approval requirement (Section 4)

    • The act takes effect only if approved by two-thirds (2/3) of Shelby County’s legislative body.
    • The presiding officer must proclaim the approval or nonapproval and certify to the secretary of state.

  5. Effective date (Section 5)

    • If approved, the act becomes effective upon becoming law for the purposes of approval; otherwise, it follows the standard effectiveness rules.

Affected parties and impacts

  • Shelby County government: Changes in revenue allocation (to CVB vs. county general/city uses) after NBA tenancy ends.
  • CVB (Convention and Visitors Bureau): Receives a defined 61.25% share of occupancy tax revenues once NBA tenancy ends.
  • County (general fund/authorized uses): Receives 38.75% of occupancy tax revenues after the trigger.
  • Indoor sports facility tenants (notably an NBA franchise): The occupancy tax remains in place until the specified end condition; the fiscal horizon is extended to 2050 or the end of NBA occupancy, whichever occurs first.
  • Public/users of tourism-related facilities: Indirect impact through continuing tax collection and funding allocation for CVB projects and county uses.

Procedural and timeline aspects

  • The act requires a supermajority (2/3) approval by Shelby County’s legislative body to take effect.
  • If approved, the modified triggers apply moving forward, with the long-term sunset tied to NBA tenancy or June 30, 2050, whichever occurs first.
  • The bill amends several historic private acts governing Shelby County’s hotel occupancy tax framework (dating back to 1969 and amended through 2024).

Notes

  • The bill text references the Cook Convention Center and prior bond financing provisions, indicating a longstanding mechanism for funding related facilities through the occupancy tax.
  • The reallocation and extended duration reflect a shift in how long tax revenue supports local tourism/hospitality infrastructure and county needs, contingent on NBA tenancy status.

Compiled from official sources — confirm details with the bill’s official record.

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