SB 211 - HB 397
FISCAL NOTE
Fiscal Review Committee
Tennessee General Assembly
February 15, 2025
Fiscal Analyst: Elizabeth Bransford | Email: elizabeth.bransford@capitol.tn.gov | Phone: 615-741-2564
SB 211 - HB 397
SUMMARY OF BILL: Reallocates to Finley Stadium state and local sales tax revenue
derived from the sale of admissions to events occurring within the stadium and from all sales of
food, drinks, merchandise, and parking sold on the premises of the stadium. Requires such
allocation to fund debt service for capital projects and operation expenses for the stadium, until the
sooner of July 1, 2055, or the debt is retired.
FISCAL IMPACT:
STATE GOVERNMENT
REVENUE General Fund
Each Year FY25-26 through FY54-55 ($342,200)
LOCAL GOVERNMENT
REVENUE Mandatory
Each Year FY25-26 through FY54-55 ($89,900)
Assumptions:
• The proposed legislation requires the allocation of state and local sales tax revenue derived
from the sale of admission, food, drinks, and merchandise from a location on the premises
of Finley Stadium and parking sold on the premises to continue until the sooner of July 1,
2055, or the capital debt is retired.
• For the purposes of this analysis, it is assumed the allocation will continue until July 1, 2055,
or through FY54-55.
• According to the Finley Stadium Corporation’s Annual Report, attendance from events
taking place at the stadium totaled 146,750 in FY23-24. Of this amount, 130,412 attended
University of Tennessee Chattanooga (UTC) football games, Chattanooga Football Club
events, and high school football championships; 16,338 attended other events.
• For the purposes of this analysis, it is assumed UTC football, Chattanooga Football Club,
and high school football championship event attendees paid on average $45 per event. It is
further assumed that for all other events, attendees paid on average $40 per event.
• Total sales at the Finley Stadium for FY23-24 are, therefore, estimated to be $6,522,060
[(130,412 x $45) + (16,338 x $40)]. For the purposes of this analysis, this number is
assumed to remain constant into perpetuity.
SB 211 - HB 397 2
• Pursuant to Tenn. Code Ann. § 67-6-103(d)(1)(A)(vi), the state sales tax rate subject to
apportionment is 5.5 percent. The rate of apportionment to local government pursuant to
the state-shared allocation is estimated to be 4.603 percent.
• Pursuant to Tenn. Code Ann. § 67-6-702(a), local governments are authorized to levy a tax
on the same privileges subject to the state sales tax rate. In Hamilton County, where Finley
Stadium is located, the local sales tax rate is 2.25 percent. The local sales tax reallocation
pursuant to this legislation does not apply to the portion of the tax revenue otherwise
allocated for education purposes. Such portion equals 50 percent of the local sales tax.
• The total recurring decrease in state revenue is estimated to be $342,202 [($6,522,060 x
5.5%) – ($6,522,060 x 5.5% x 4.603%)] in FY25-26 each through FY54-55.
• The total recurring decrease in local revenue is estimated to be $89,885 [($6,522,060 x
2.25% x 50%) + ($6,522,060 x 5.5% x 4.603%)] in FY25-26 each through FY54-55.
• The proposed legislation requires the governing entity of Finley Stadium to reimburse the
state for costs resulting from the above allocation.
• However, in making regular allocations of sales and use tax collections as required by law,
the Department of Revenue (DOR) receives an appropriation to cover the costs associated
with administering allocations.
• Because the proposed legislation applies to only one entity, any reallocation costs realized
by DOR will be minimal and absorbed utilizing existing resources.
CERTIFICATION:
The information contained herein is true and correct to the best of my knowledge.
Bojan Savic, Executive Director