67-6-712 - Distribution of revenue. [Amended effective July 1, 2011. See the Compiler's Notes.]
67-6-712. Distribution of revenue. [Amended effective July 1, 2011. See the Compiler's Notes.]
(a) The tax levied by a county under this part shall be distributed as follows:
(1) 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
(2) The other one-half (½) as follows:
(A) Collections for privileges exercised in unincorporated areas, to such fund or funds of the county as the governing body of the county shall direct;
(B) Collections for privileges exercised in incorporated cities and towns, to the city or town in which the privilege is exercised;
(C) However, a county and city or town may by contract provide for other distribution of the one-half (½) not allocated to school purposes.
(3) 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.
(b) (1) 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 the provisions of § 8-11-110 or any other law to the contrary.
(2) The provisions of 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.
(c) (1) (A) 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) 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.
(B) 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 the 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. The amounts distributed to the municipality shall be for the exclusive use of currently existing entities attached to committees provided for in Acts 2008, ch. 1004, § 2 or, if no such entity exists, then for the exclusive use of an authority organized pursuant to title 7, chapter 67. Such amounts shall be used exclusively for the payment of, or the reimbursement of, as directed by the facility manager, 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.
(C) For the purpose of this subsection (c), municipality means any incorporated city or county located in this state.
(2) 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).
(d) 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 the provisions of title 7, chapter 88. [Effective July 1, 2011. See the Compiler's Notes.]
(e) (1) When local sales tax revenues received by the department cannot be identified to a particular situs, the following distribution shall be made:
(A) Fifty percent (50%) shall be distributed to incorporated municipalities in the proportion that the population of each bears to the aggregate population of the state and to counties in the proportion the population of unincorporated areas of the county bears to the aggregate population of the state, according to the most recent federal census and other census authorized by law. Counties and incorporated municipalities shall use the funds in the same manner and for the same purposes as funds distributed pursuant to this section; and
(B) Fifty percent (50%) shall be distributed to the counties based on the ratio of local tax collections in the county under this section over total tax collections in all counties under this section.
(2) The amount received by the county under subdivision (e)(1)(B) shall be distributed first as provided for in subdivision (a)(1). The remainder shall be distributed to the cities or towns in the county based on the ratio of total collections in the municipality to total collections in the county.
[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.]