2019 Tennessee Code
Title 67 - Taxes and Licenses
Chapter 4 - Privilege and Excise Taxes
Part 14 - Accommodations for Transients — Hotel Occupancy
§ 67-4-1402. Levy of tax authorized -- Delinquent notice by publication.

(a)

• (1) Each municipality in this state is authorized to levy by ordinance a privilege tax upon the privilege of occupancy in any hotel of each transient in an amount not to exceed five percent (5%) of the consideration charged by the operator.

• (2) Notwithstanding subdivision (a)(1), a municipality with a population of more than six hundred ten thousand (610,000), according to the 2010 federal census or any subsequent federal census, is authorized to levy by one (1) or more ordinances a privilege tax upon the privilege of occupancy in any hotel of each transient in an amount not to exceed an aggregate of five percent (5%) of the consideration charged by the operator.

(b)

• (1) No ordinance authorizing such privilege tax shall take effect unless it is approved by a two-thirds (⅔) vote of the municipal legislative body at two (2) consecutive, regularly scheduled meetings, or unless it is approved by a majority of the number of qualified voters of the municipality voting in an election on the question of whether or not the tax should be levied.

• (2) If there is a petition of ten percent (10%) of the qualified voters who voted in the municipality in the last gubernatorial election that is filed with the county election commission within thirty (30) days of final approval of such ordinance by the municipal legislative body, then the county election commission shall call an election on the question of whether or not the tax should be levied in accordance with this section.

• (3) The municipal legislative body shall direct the county election commission to call such election, to be held in a regular election or in a special election for the purpose of approving or rejecting such tax levy. The municipality shall pay the cost of any special election.

• (4) The ballots used in such election shall have printed on them the substance of such ordinance and the voters shall vote for or against its approval.

• (5) The votes cast on the question shall be canvassed and the results proclaimed by the county election commission and certified by it to the municipal legislative body.

• (6) The qualifications of voters voting on the question shall be the same as those required for participation in general elections.

• (7) All laws applicable to general elections shall apply to the determination of the approval or rejection of this tax levy.

(c)

• (1) Except as provided in subdivision (c)(5), as a preliminary step toward pursuing any remedy available to the authorized collector by law to collect any taxes due or delinquent under an ordinance imposing a tax on the privilege of occupancy in a hotel, the authorized collector may publish a notice in accordance with subdivision (c)(2) that lists the name of each operator who has failed to collect or remit the tax due or delinquent and the amount of the tax due or delinquent, if:

  • (A) The amount of the tax due or delinquent exceeds ten thousand dollars ($10,000) and has been due or delinquent for one hundred twenty (120) days or more; or

  • (B) The amount of the tax due or delinquent exceeds fifty thousand dollars ($50,000).

• (2) Any municipality that elects to publish a notice as authorized by subdivision (c)(1) shall cause the notice to be inserted, once a week for two (2) consecutive weeks in the month of January, in a newspaper of general circulation as defined in § 2-1-104 or one (1) or more newspapers published or widely distributed in the municipality; provided, that if no newspaper is published in the municipality, the notice shall be posted on the courthouse door.

• (3) The cost of publication shall be paid by the municipality.

• (4) To the extent there is a conflict between this subsection (c) and any ordinance that imposes a tax on the privilege of occupancy in a hotel, this subsection (c) shall govern. The legislative body of any municipality, by ordinance, is authorized to modify the provisions of any ordinance enacted prior to April 14, 2016, that conflict with this subsection (c).

• (5) An operator's name and amount of tax due or delinquent shall not be listed on any notice published pursuant to subdivision (c)(1) if all or any portion of the tax is at issue in a suit filed by the operator challenging the collection or assessment of the tax.