Tennessee House Bill HB1178

Tennessee 2023-2024 Regular Session

• Introduced: 1/31/23
• Refer: 2/2/23

Caption

AN ACT to amend Tennessee Code Annotated, Section 7-4-202 and Section 67-4-1415, relative to taxes collected from hotels located within a municipality lying partly within a county with a metropolitan form of government and partly within an adjacent county.

Impact

The amendments proposed in HB1178 are expected to streamline the taxation process for hotels operating in specific jurisdictions where local and state government structures overlap. By formally recognizing the tax structures that municipalities have established, the bill seeks to prevent confusion and potential legal disputes over tax responsibilities. It acknowledges the special status of cities with metropolitan governance, indicating that the bill is tailored to the unique challenges faced by these municipalities in tax collection and regulation.

Summary

House Bill 1178 aims to amend Tennessee's tax code specifically regarding hotel occupancy taxes. The bill addresses scenarios in which hotels located in municipalities that partially fall within a county with a metropolitan form of government and an adjacent county are affected. It provides new provisions exempting such hotels from certain sections of the state tax code if the municipality had already imposed an occupancy tax prior to the bill's effective date. This change aims to clarify tax obligations for establishments in these unique local governance structures.

Contention

While the text of the bill does not highlight significant points of contention, the implications of changes to tax laws often spur debate among lawmakers and local governments. Concerns may arise over potential inequalities created by the bill, as municipalities with metropolitan governance may have different tax capabilities compared to those without such designations. Additionally, local officials might fear a loss of control over taxation on hotels, which could impact local funding for services. As discussions progress, varying interpretations of the bill's provisions could lead to further scrutiny from legislators and affected stakeholders.