Tennessee House Bill HB2969

Tennessee 2023-2024 Regular Session

• Introduced: 2/8/24
• Refer: 2/15/24
• Refer: 3/5/24
• Chaptered: 4/17/24
• Passed: 4/17/24

Caption

AN ACT to amend Chapter 25 of the Private Acts of 2009; and any other acts amendatory thereto, relative to the Clay County hotel-motel tax.

Impact

If approved, the bill will directly affect the hotel-motel tax regulations established under the Private Acts of 2009. The increase in tax rate is contingent on receiving a two-thirds majority approval from the Clay County legislative body. This requirement ensures local governance involvement in the decision-making process regarding tax adjustments, reflecting a degree of local autonomy while also inflating the funding available for local initiatives.

Summary

House Bill 2969 proposes an amendment to the hotel-motel tax rate in Clay County, changing it from 2.5% to 4%. This legislative action is aimed at increasing local revenue generated from tourism and hospitality sectors. By raising the tax rate, the bill seeks to enhance the county's financial resources, which can be utilized for local projects, infrastructure improvements, and community services.

Sentiment

Discussions surrounding HB 2969 are expected to generate mixed sentiments among stakeholders. Proponents, particularly from the tourism industry and local government, are likely to support the increase for its potential to bolster funding for community services and improvements. Conversely, there may be opposition from local residents or businesses concerned about the impact of increased taxes on their economic burden, which may elicit varying levels of resistance and advocacy during legislative deliberations.

Contention

The bill's notable points of contention may center around the balance of increasing local revenue while ensuring the tax rate remains competitive and does not deter visitors. Additionally, the necessity for a two-thirds legislative approval introduces a layer of conflict where differing opinions on taxation and its implications on the local economy may arise. Stakeholders will need to engage in discussions on the potential benefits versus the drawbacks of this tax increase, determining its rate of acceptance within the community.