The University of Tennessee, Knoxville

Tennessee County Municipal Advisory Service

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Exceptions for Hotel/Motel Tax

Reference Number: MTAS-1130
Tennessee Code Annotated
Reviewed Date: October 19, 2015
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T.C.A. § 67-4-1425 provides that after May 12, 1988, a city located in a county that has levied a hotel-motel tax cannot levy a city hotel-motel tax under authority of a private act. The provisions of this section do not apply in any county, excluding any county with a metropolitan form of government, that:

  • Contains or borders a county that contains an airport designated as a regular commercial service airport in the International Civil Aviation organization (ICAO) regional air navigation plan; and
  • Contains a government-owned convention center of at least 50,000 square feet with an attached, adjoining, or adjacent hotel or motel facility; or
  • Contains an airport with regularly scheduled commercial passenger service, and the creating municipality of the metropolitan airport authority for the airport is not located within such county. The tax levied on occupancy of hotels by cities located within such a county may be used only for tourism as defined by T.C.A. § 7-4-101. A municipality located in any county to which the previous provisions apply may levy a privilege tax upon the privilege of occupancy in any hotel of each transient in an amount exceeding 5 percent of the consideration charged by the operator. If a municipality located in such county is incorporated under the general law, the municipality may levy a privilege tax by ordinance adopted by a two-thirds vote of its governing body upon the privilege of occupancy in any hotel of each transient in an amount not to exceed 5 percent of the consideration charged by the operator. The ordinance shall set forth the manner of collection and administration of the privilege tax.
  • T.C.A. § 67-4-1425 does not apply to any city that has constructed a qualifying project or projects under the Convention Center and Tourism Development Financing Act of 1998.
  • T.C.A. § 67-4-1425 contains additional exceptions that apply to specific counties and cities based on their publications.
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