TennesseeTennessee law directs some venue sales taxes to pay debt
Tennessee municipalities and public authorities may use certain allocated sales taxes for purposes allowed by either law, while some venue taxes must pay venue debt.
What it does
The law describes a qualifying mixed-use development as having a large sports facility or performance venue, with location and investment conditions.
A qualifying municipality or public authority may choose which law’s allowed purposes to use its allocated sales tax revenue for.
When the venue and stadium conditions are met, specified sales taxes must help repay venue debt; school funds and two specified tax increases are excluded.
Argument forWhen the venue and stadium conditions are met, specified sales taxes could help a public entity pay off venue debt.
Argument againstVenue tax revenue could be tied up in debt payments for years, leaving less available for other local needs.
More detail
The law defines a qualifying mixed-use development as one that initially includes at least 10 sports fields or a performance venue seating at least 2,500 people. This definition applies to mixed-use developments considered under the tourism development zone tax law. The development may also include retail, offices, hotels, apartments, condominiums, and other commercial or residential uses. When certified, some part of the development must be in a tourism development zone, and the municipality must expect at least $200 million in total public and private investment.
A municipality or public authority entitled to sales tax revenue under both cited laws may use it for purposes allowed by either law, as it decides. This applies to a municipality or public authority entitled to the specified sales tax revenue. The municipality or public authority must be entitled to receive an allocation under both this chapter and section 67-6-103.
A share of specified sales and use tax revenue from the venue grounds must go to a public entity designated by the municipality to pay some or all of the venue’s original debt. The revenue comes from food and drink, tickets, parking, other authorized sales, and other goods and services on the venue grounds and related parking areas. This applies when a venue seating at least 2,500 people is built or adapted inside a publicly owned stadium previously leased to a Class AA or higher minor league baseball team that moved elsewhere in Tennessee. The revenue must pay venue debt, including refinanced debt. Local sales taxes otherwise allocated to schools and the specified tax increases for education are excluded. The distribution ends when the debt is paid or 30 years after the end of the first full fiscal year after the venue opens, whichever comes first.
Where do you stand?
Choose your position
Tell your reps
Take a position to see your representatives and ways to contact them.
Where it stands
- Introduced
- Passed House
- Passed Senate
- To Governor
- Became Law
Looking ahead
No hearings or votes scheduled.
History
- 2026
- May 27Pub. Ch. 1034Latest
- May 27Effective date(s) 05/21/2026
- May 21Signed by Governor Bill Lee.Became Law
- May 11Transmitted to Governor for his action.To Governor
- May 5Signed by Senate SpeakerMajor
- Apr 30Signed by H. SpeakerMajor
- Apr 29Enrolled; ready for sig. of H. Speaker.Minor
- Apr 23Senate substituted House Bill for companion Senate Bill.Major
- Vote recorded FLOOR VOTE: Third Consideration 4/23/2026 Passed. Result: pass.Upper
- Apr 23Amendment withdrawn. (Amendment 1 - SA1088)
- Apr 23Passed Senate, Ayes 30, Nays 0Passed Senate
- Apr 14Received from House, Passed on First ConsiderationMinor
- Apr 13Sponsor(s) Added.Minor
- Vote recorded FLOOR VOTE: REGULAR CALENDAR AS AMENDED PASSAGE ON THIRD CONSIDERATION 4/13/2026 Passed. Result: pass.Lower
- Vote recorded HOUSE CALENDAR & RULES COMMITTEE: H. Placed on Regular Calendar for 4/13/2026 4/9/2026. Result: fail.Lower
- Apr 13Am. withdrawn. (Amendment 1 - HA0740)Minor
- Apr 13H. adopted am. (Amendment 2 - HA1063)Major
- Apr 13Passed H., as am., Ayes 80, Nays 11, PNV 3Passed House
- Apr 13Engrossed; ready for transmission to Sen.Minor
- Apr 9H. Placed on Regular Calendar for 4/13/2026
- Apr 8Placed on cal. Calendar & Rules Committee for 4/9/2026
- Apr 7Rec. for pass. if am., ref. to Calendar & Rules CommitteeMinor
- Vote recorded HOUSE FINANCE, WAYS, AND MEANS COMMITTEE: Rec. for pass. if am., ref. to Calendar & Rules Committee 4/7/2026 Passed. Result: pass.Lower
- Apr 1Rec. for pass by s/c ref. to Finance, Ways, and Means CommitteeMinor
- Vote recorded HOUSE FINANCE, WAYS, AND MEANS SUBCOMMITTEE: Rec. for pass by s/c ref. to Finance, Ways, and Means Committee 4/1/2026 Passed. Result: pass.Lower
- Apr 1Placed on cal. Finance, Ways, and Means Committee for 4/7/2026
- Mar 25Placed on s/c cal Finance, Ways, and Means Subcommittee for 4/1/2026
- Mar 19Assigned to s/c Finance, Ways, and Means SubcommitteeMinor
- Mar 18Rec. for pass. if am., ref. to Finance, Ways, and Means CommitteeMinor
- Vote recorded HOUSE STATE & LOCAL GOVERNMENT COMMITTEE: Rec. for pass. if am., ref. to Finance, Ways, and Means Committee 3/18/2026 Passed. Result: pass.Lower
- Mar 11Sponsor(s) Added.Minor
- Vote recorded HOUSE CITIES & COUNTIES SUBCOMMITTEE: Rec for pass if am by s/c ref. to State & Local Government Committee 3/11/2026 Passed. Result: pass.Lower
- Mar 11Rec for pass if am by s/c ref. to State & Local Government CommitteeMinor
- Mar 11Placed on cal. State & Local Government Committee for 3/18/2026
- Mar 4Placed on s/c cal Cities & Counties Subcommittee for 3/11/2026
- Feb 5P2C, ref. to State & Local Government CommitteeMinor
- Feb 5Assigned to s/c Cities & Counties SubcommitteeMinor
- Feb 4Intro., P1C.Minor
- Feb 3Filed for introductionIntroduced
Taxes & Budget