Tourism Business Wants to Add a Little ‘Fee’ to Nashville Sales Tax

Sales tax on certain goods sold in downtown Nashville would effectively increase by a small fraction under state legislation Mayor Karl Dean’s administration supports as a way to generate new funds to recruit conventions to the Music City Center, according to the Tennessean.
The proposal, which originated with the Nashville Convention and Visitors Bureau and a handful of Lower Broadway merchants looking for new ways to attract large conventions, would institute a new 0.025 percent fee on goods and services within Nashville’s downtown business district.
Tourism officials plan to use the funds to underwrite the rent of Music City Center as an incentive to lure conventions here. Sales tax in Davidson County is currently 9.25 cents on every dollar.
The legislation calls the measure a “fee,” one that would produce an estimated $1 million to $1.5 million annually. It would go into effect in 2014.
“The CVB and downtown business owners brought forward this idea and we support it as something that will further bolster our tourism industry,” Metro Finance Director Rich Riebeling said in a prepared statement.
The bill, introduced by state Rep. Mike Turner, D-Old Hickory, and co-sponsored by the majority of Davidson County’s state delegation, heads to the State Government Subcommittee this week
.

Leave a Reply