Tennessee Code Title 67. Taxes and Licenses § 67-4-1403

Current as of January 02, 2024 | Updated by Findlaw Staff

(a) Except as otherwise provided in subsection (b):

(1) The revenue received by a municipality from the tax must be designated and used for tourism promotion and tourism development, including debt service and contractual obligations incurred in furtherance of such purposes; and

(2) Revenue that is received by a municipality that is used to fund a destination marketing entity engaged in tourism promotion on behalf of the municipality must be released to the destination marketing entity no later than one hundred twenty (120) days after the municipality approves its final budget.

(b) Subject to § 67-4-1414, a municipality levying a tax upon the privilege of occupancy before May 1, 2025, may continue to use the revenue in the manner prescribed in the private act, resolution, or ordinance levying the tax.

(c)(1) Not later than ninety (90) days after the end of a municipality's fiscal year, each municipality that levies a tax upon the privilege of occupancy, whether pursuant to this part or by private act, ordinance, or resolution, shall provide an annual written report to the commissioner of the department of tourist development.

(2) The annual written report must detail the amount of revenue spent by the municipality, and its subordinate contractors, and how those expenditures have been designated and used for tourism promotion and tourism development pursuant to this part.

(d) If an audit by the comptroller of the treasury or by contractors employed by a municipality with the approval of the comptroller, finds that a municipality has spent funds derived from a tax levied pursuant to this part for purposes not related to tourism promotion and tourism development as required by subsection (a), the municipality shall, using general funds, appropriate an amount equal to the amount spent improperly to be used to support tourism promotion and tourism development for the next subsequent fiscal year.

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Cite this article: FindLaw.com - Tennessee Code Title 67. Taxes and Licenses § 67-4-1403 - last updated January 02, 2024 | https://codes.findlaw.com/tn/title-67-taxes-and-licenses/tn-code-sect-67-4-1403/

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