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HB 627

Taxes, Hotel Motel - As enacted, revises present law relative to the privilege tax upon the privilege of occupancy in a hotel levied by municipalities. - Amends TCA Title 7 and Title 67.

114th Regular Session (2025-2026) Introduced by John Crawford

HB 627 revises how Tennessee municipalities levy occupancy taxes on hotels, potentially affecting local government revenues and hotel pricing structures.

Comp. became Pub. Ch. 372
#hotelmotel #taxes
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WeVote Research Nonpartisan
Bill Summary · HB 627

Legislative bill overview

HB 627 revises Tennessee's municipal hotel-motel occupancy tax (privilege tax) by amending statutes in Title 7 and Title 67. The bill modifies how municipalities can levy and structure taxes on hotel room rentals, which are a significant revenue source for local governments.

Why is this important

Hotel-motel taxes directly affect tourism-related businesses and travelers, and generate substantial revenue for municipal budgets—often dedicated to tourism promotion, infrastructure, and local services. Changes to this tax structure can influence hotel pricing, municipal revenue stability, and competitiveness of Tennessee's tourism markets.

Potential points of contention

  • Revenue impact uncertainty: Without seeing specific amendments, the revision could either expand or limit municipal tax revenue, affecting local budgets and services
  • Competitive fairness: Changes may create disparities between how different municipalities tax hotels, potentially affecting business location decisions
  • Transparency of amendments: The bill underwent a "complete substitute" (Comp. SB subst.), meaning the final version differs substantially from the original—actual provisions require careful review of enrolled legislation

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

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