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SB 734

Taxes, Hotel Motel - As enacted, extends by six years the period in which Davidson County may charge an additional $0.50 privilege tax on the occupancy of a hotel room and in which such county may allocate the tax revenue for the purposes of direct promotion of tourism; extends by six years the terms of the committee members that oversee the fund in which the additional tax is deposited. - Amends TCA Section 7-4-202.

114th Regular Session (2025-2026) Introduced by Mark Pody

Extends the extra hotel tax (up to $0.50) in Nashville-Davidson County for six more years (to 2032) and prolongs the Event and Marketing Fund Committee’s term.

Pub. Ch. 120
#hotelmotel #taxes
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Bill Summary · SB 734

Summary of SB 734 (Session 114) – Tennessee

Overview

  • Bill: SB 734 (Senate) / HB 824 (House)
  • Jurisdiction: Tennessee
  • Topic: Hotel occupancy taxes in Nashville-Davidson County (metropolitan government)
  • Purpose: Extend by six years the period during which Nashville-Davidson County may impose an additional hotel occupancy privilege tax and extend the terms of the committee that oversees the related Event and Marketing Fund.

What the bill does

  1. extends the extra tax authority period

    • Currently, Nashville-Davidson County may impose an additional hotel occupancy privilege tax beyond the base rate, up to $2.50 per room, with revenue deposited into the Event and Marketing Fund.
    • SB 734 extends the authority to impose the additional tax of up to $0.50 (i.e., the portion above $2.00, for a total of up to $2.50) for six more years, moving the expiration date from May 21, 2026 to May 21, 2032.
    • A practical effect: the county can continue to collect the extra $0.50 per hotel room occupancy for six additional years to fund activities tied to tourism and events.

  2. extends the term of the Event and Marketing Fund Committee

    • The bill extends the terms of the committee members who oversee the Event and Marketing Fund (the fund that receives the revenue from the additional hotel tax) for another six years, aligning with the extended tax authority period.
    • Members serve without compensation (consistent with current practice).

Key provisions and changes

  • Amends Tenn. Code Ann. § 7-4-202 (Subdivision (d)(2)): updates the expiration date for the additional tax authority from May 21, 2020 to May 21, 2026, and, with this bill, to May 21, 2032.
  • Clarifies that revenue collected in excess of $2.00 per hotel room occupancy may be deposited into the Nashville-Davidson County Event and Marketing Fund (the mechanism funding tourism/promotion activities).
  • Maintains the six-year extension for the Committee that oversees the Event and Marketing Fund.

Who/what is affected

  • Nashville-Davidson County (Metropolitan Government): retains and extends authority to impose the additional $0.50 tax on hotel occupancy, subject to voter/legislative authorization via ordinance.
  • Event and Marketing Fund: continues to receive revenue from the excess tax (above $2.00), supporting direct promotion of tourism and related activities.
  • Committee members: their terms are extended by six years to coincide with the extended tax authority.

Fiscal and timeline notes

  • Fiscal impact (as projected by the fiscal note):
    • The extension maintains funding for the Event and Marketing Fund at approximately $5,011,200 per year for fiscal years 2026-27 through 2031-32.
    • Assumes the extra $0.50 tax revenue remains around the FY23-24 level (about $5.01 million) through the extended period.
    • Members serve without compensation; extending terms does not significantly increase expenditures.
  • Effective date: The act becomes law upon signing and publication; specific effective date shown as April 3, 2025, with constitutional/legislative effective date noted as per the act.

Practical implications

  • Tourism promotion funding in Nashville-Davidson County will continue at current levels through FY31-32, driven by the extended additional hotel occupancy tax.
  • Local policymakers retain a dedicated revenue stream for marketing and tourism-related initiatives for six more years.
  • Administrative and governance structure (the overseeing Committee) remains in place with extended terms.

If you’d like, I can provide a side-by-side comparison of current law vs. SB 734 and a brief FAQ for readers.

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

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