§ 58-89. Expending and distributing tax.

The proceeds from the tax levied herein shall be retained by the county government and distributed and expended as follows:

(1)

If the county has levied the privilege tax pursuant to section 58-82 of this article at a rate not exceeding three percent of the consideration charged by the operator, it shall distribute and expend the tax proceeds as follows:

a.

Two-thirds of the proceeds shall be assessed for the direct promotion of tourism, and shall be held by the county trustee (i) for payment to the tourist commission of its budgeted expenditure, or, if the county has entered into a contract or contracts for the promotion of tourism pursuant to the provisions of subsection 2-446(g) in lieu of a tourist commission, for payment of the costs associated with such contract(s); (ii) for retirement of any bonds issued by the county for the acquisition, construction and equipping of a tourist related facility, and for operation and maintenance of the same, and (iii) for payment of lease or financing obligations to a public building authority operating pursuant to the provisions of the Public Building Authorities Act of 1971, T.C.A. § 12-10-101 et seq., to defray costs of its constructing, acquiring, equipping, maintaining and operating a tourist related facility within the definition of this article within the county. The accounting department of the county shall issue warrants for payments of the budgeted expenditures in accordance with the normal accounting procedures of the county.

b.

One-third of the proceeds shall be deposited (i) 50 percent in the general fund of the county and (ii) 50 percent in the general fund of the municipality, for use by the respective governments for tourist related grants, for retirement of any bonds issued by the county or municipality for the acquisition, construction and equipping of a tourist related facility, or operation and maintenance thereof, and for payment of county or municipal lease or financing obligations to a public building authority to defray costs of its acquiring, constructing, equipping and operating a tourist related facility.

(2)

If the county has levied the privilege tax provided in section 58-82 of this article at a rate in excess of three percent but not exceeding five percent of the consideration charged by the operator, it shall cause the tax proceeds in excess of three percent to be held by the county trustee (i) for retirement of any bonds issued by the county for the acquisition, construction and equipping of a tourist related facility within the definition of this article, and for operation and maintenance of the same, and/or (ii) for payment of lease or financing obligations to a public building authority operating pursuant to the provisions of the Public Building Authorities Act of 1971, T.C.A. § 12-10-101 et seq., to defray costs of its acquiring, constructing, equipping, maintaining and operating a tourist related facility within the definition of this article within the county. The accounting department of the county shall issue warrants for payments of the budgeted expenditures in accordance with the normal accounting procedures of the county.

(3)

The county, by proper resolution of its county legislative body, is authorized to contract with any municipality within its boundaries, with a public building authority and with the U.S. government and/or the state, or any agency or instrumentality of either, with respect to such tourist related facilities, and to use or pledge such tax collections to the payment of such bonds issued by the county and/or payment of lease or financing obligations to a public building authority for the acquisition, construction, equipping, operating and maintenance of a tourist related facility.

(4)

No tax proceeds collected pursuant to this article by either a county or a municipality shall be used to provide subsidy in any form to any hotel within the definition of this article.

(Priv. Acts 1982, ch. 847, § 10; Ord. No. O-90-9-119, § 10, 9-10-90; Ord. No. O-02-6-102, § 3, 7-22-02)