Tennessee § 67-6-711 - [Reserved.]

§ 67-6-711. [Reserved.]

The tax levied by a county under this part shall be distributed as follows: One-half (½) of the proceeds shall be expended and distributed in the same manner as the county property tax for school purposes is expended and distributed; and The other one-half (½) as follows: Collections for privileges exercised in unincorporated areas, to such fund or funds of the county as the governing body of the county shall direct; Collections for privileges exercised in incorporated cities and towns, to the city or town in which the privilege is exercised; However, a county and city or town may by contract provide for other distribution of the one-half (½) not allocated to school purposes. Any out-of-state dealer making sales to a customer within this state shall report to the department information as prescribed by the commissioner, and as required under § 67-6-504(m), that is sufficient for the commissioner to appropriately distribute revenue pursuant to subdivisions (a)(1) and (a)(2). Any county, city, town, incorporated area or special school district entitled to receive the proceeds described in subdivisions (a)(1) and (2) has the power and authority, by resolution of the governing body thereof, to pledge such proceeds to the punctual payment of principal of and interest on bonds, notes or other evidence of indebtedness issued for the purpose for which such proceeds are permitted to be spent pursuant to such subdivisions (a)(1) and (2); provided, that the pledge by a county of proceeds to which it is entitled under subdivision (a)(1) shall not be effective, unless approved by resolution of the county board of education. County trustees in counties having populations of seven hundred thousand (700,000) or more, according to the 1980 federal census or any subsequent federal census, shall not be entitled to receive compensation for receiving and distributing the taxes under subsection (a), notwithstanding § 8-11-110 or any other law to the contrary. This subsection (b) shall have no effect, unless it is approved by a two-thirds (2/3) vote of the legislative body of any county to which it may apply. Its approval or nonapproval shall be proclaimed by the presiding officer of the legislative body and certified by such presiding officer to the secretary of state. Notwithstanding the allocations provided for in subsection (a), if there exists in a municipality a sports authority organized pursuant to title 7, chapter 67, and if that sports authority has secured a major league professional baseball (American or National League), football (National Football League or Canadian Football League, or its successors or assigns), basketball (National Basketball Association), soccer (Major League Soccer), or major or minor league professional hockey (National Hockey League or Central Hockey League or East Coast Hockey League) franchise for that municipality, and only if the municipality or any board or instrumentality of the municipality reimburses the state for any costs to reallocate apportionments of the tax revenue under this section, then an amount shall be apportioned and distributed to the municipality equal to the amount of local tax revenue derived from the sale of admissions to the events of the major or minor league professional sports franchise and also the sale of food and drink sold on the premises of the sports facility in conjunction with those games, parking charges, and related services, as well as the sale by the major or minor league professional sports franchise within the county in which the games take place of authorized franchise goods and products associated with the franchise's operations as a professional sports franchise. The amount distributed to the municipality shall be for the exclusive use of the sports authority, or comparable municipal agency formally designated by the municipality, in accordance with title 7, chapter 67. In addition, if an indoor sports facility owned by a sports authority organized pursuant to title 7, chapter 67, in which a professional sports franchise is a tenant, exists in a county with a metropolitan form of government, then an amount shall be apportioned and distributed to the municipality equal to two-thirds (2/3) of the amount of the allocation of local tax revenue under subdivision (a)(2) derived from the sale of admissions to all other events occurring at such indoor sports facility and from all other sales of food and drink and other authorized goods or products sold on the premises of the indoor sports facility, parking charges, and related services. Such amounts distributed to the municipality shall be for the exclusive use of the sports authority, or comparable municipal agency formally designated by the municipality, in accordance with title 7, chapter 67. Such amounts shall be used exclusively for the payment of, or the reimbursement of expenses associated with securing current, expanded, or new events for indoor sports facilities owned by a municipal agency formally designated by the municipality, in accordance with title 7, chapter 67. For the purpose of this subsection (c), “municipality” means any incorporated city or county located in this state. Any bonds issued relative to the construction of a sports facility shall not be issued for a term longer than thirty (30) years from the date the first game is played by the professional sports franchise in a municipality, as defined in subdivision (c)(1). Notwithstanding the provisions of this section to the contrary, revenue derived from taxes imposed by this part shall be earmarked and allocated in accordance with title 7, chapter 88. If any dealer fails to provide the department with the information required under § 67-6-504(m) and the department is unable to determine the proper distribution of local sales tax under subsection (a), the department shall distribute the local sales tax as follows: For taxes received by the department before July 1, 2021: The tax shall be distributed to the counties based on the ratio of local tax collections in the county under this section over total local tax collections in all counties under this section; The amount received by the county under subdivision (e)(1)(A) shall be distributed first as provided for in subdivision (a)(1). The remainder shall be distributed to each incorporated municipality in the county based on the ratio of local tax collections in the municipality to total local tax collections in the county and shall be distributed to the county based on the ratio of local tax collections in the unincorporated portions of the county to total local tax collections in the county; For taxes received by the department on or after July 1, 2021: The tax shall be distributed to the counties based on the ratio of local tax collections in the county from dealers with no location in this state that can be identified by situs over the total local tax collections in all counties from dealers with no location in this state that can be identified by situs; The amount received by the county under subdivision (e)(2)(A) shall be distributed first as provided for in subdivision (a)(1). The remainder shall be distributed to each incorporated municipality in the county based on the ratio of local tax collections in the municipality from dealers with no location in this state that can be identified by situs over the total local tax collections in the county from dealers with no location in this state that can be identified by situs and shall be distributed to the county based on the ratio of local tax collections in the unincorporated portions of the county from dealers with no location in this state that can be identified by situs over the total local tax collections in the county from dealers with no location in this state that can be identified by situs; A county and a municipality may, by contract, provide for an alternative distribution for the amount not distributed under subdivision (a)(1). Acts 1963, ch. 329, § 4; 1967, ch. 90, § 1; T.C.A., § 67-3052; Acts 1987, ch. 176, § 2; 1988, ch. 848, §§ 1, 2; 1990, ch. 1096, § 2; 1993, ch. 519, §§ 3, 5; 1994, ch. 968, § 2; 1995, ch. 237, § 2; 1998, ch. 747, § 1; 1998, ch. 1055, § 13; 2004, ch. 959, §§ 28, 68; 2005, ch. 311, § 2; 2005, ch. 441, § 2; 2007, ch. 602, §§ 52, 169; 2008, ch. 1106, § 15; 2009, ch. 530, §§ 35, 63; 2011, ch. 72, § 1; 2012, ch. 849, § 2; 2019, ch. 440, § 1; 2019, ch. 491, §§ 4, 5. Compiler's Notes. Acts 2007, ch. 602, § 52 provided that Acts 2004, ch. 959, §§ 28, 68, as amended by Acts 2005, ch. 311, § 2, is repealed in its entirety, effective July 28, 2007. Acts 2008, ch. 1106, § 69 provided that § 15 of the act, which added the third sentence of (c)(1), shall apply to events occurring on or after January 1, 2009. For tables of population of Tennessee municipalities, and for U.S. decennial populations of Tennessee counties, see Volume 13 and its supplement. Amendments. The 2019 amendment by ch. 440, inserted “soccer (Major League Soccer),” following “(National Basketball Association)” in (c)(1)(A). The 2019 amendment by ch 491, effective October 1, 2019, added (a)(3) and redesignated former (a)(3) as (a)(4), and added (e). Effective Dates. Acts 2019, ch. 440, § 2. May 22, 2019. Acts 2019, ch. 491, § 8. October 1, 2019. Cross-References. Changes in municipal boundaries, effect upon receipt and distribution of tax revenues, § 6-51-115 . Pledge of county aid fund proceeds for roads and bridges, § 54-4-101 . Law Reviews. Tennessee Annexation Law: History, Analysis, and Proposed Amendments (Frederic S. Le Clercq), 55 Tenn. L. Rev. 577 (1989). Attorney General Opinions. Distribution of local option sales tax revenues, OAG 97-038 (4/2/97). School funding — use of local option sales tax revenue, OAG 99-203 (10/11/99). A city may give monies collected from city taxpayers to a city special school district, OAG 01-076 (5/8/01). City of Millington School Board is not entitled to a payment from the City of Millington of one-half of the proceeds from a local-option sales tax adopted by the City. T.C.A. § 67-6-712 applies only to local-option sales taxes adopted by counties. OAG 15-76, 2015 Tenn. AG LEXIS 77 (11/20/2015).