Tennessee House Bill HB1085

Tennessee 2023-2024 Regular Session

• Introduced: 1/31/23
• Refer: 2/2/23
• Refer: 4/18/23
• Engrossed: 4/21/23
• Enrolled: 5/1/23
• Passed: 5/11/23
• Chaptered: 5/19/23

Caption

AN ACT to amend Tennessee Code Annotated, Title 67, relative to taxes.

Impact

The bill establishes a framework aimed at supporting local municipalities that host professional sports facilities. By guaranteeing the continuous flow of state tax revenue from sales related to sports events and associated services, it allows municipalities to utilize these funds to cover expenses tied to securing and promoting current or new events at these venues. This could potentially lead to enhanced economic activity and local revenue generation within those municipalities.

Summary

House Bill 1085 is a legislative measure aimed at amending the Tennessee Code, particularly regarding the distribution of state tax revenues linked to indoor sports facilities that host National Basketball Association (NBA) franchises. Specifically, the bill ensures that the current distribution of state tax revenue based on sales from events at these sports facilities will continue until June 30, 2059. This change particularly impacts counties with populations over 900,000 in accordance with census data.

Sentiment

The sentiment surrounding HB 1085 appears to be largely positive among proponents, particularly among those within the sporting and local governance communities. Supporters view the bill favorably as a means to stimulate local economies through the enhancement of sports facilities and their ability to attract larger events. In contrast, there may be some skepticism or concern among lawmakers focused on broader fiscal impacts or alternative allocations of state revenues.

Contention

While there seems to be general support for the bill, notable contention could arise over the long-term implications of tying state revenues to specific facilities and events. Critics might argue that this approach could limit flexibility in budget allocations across other pressing local needs, such as education or infrastructure. Furthermore, ongoing debates about fiscal responsibility and prioritization of funding may highlight contrasting views on the best use of state tax revenues.