Tennessee House Bill HB2666

Tennessee 2025-2026 Regular Session

• Introduced: 4/6/26
• Refer: 4/8/26
• Refer: 4/13/26
• Refer: 4/15/26
• Engrossed: 4/21/26
• Enrolled: 4/29/26

Caption

AN ACT to amend Chapter 131 of the Private Acts of 1969; as amended by Chapter 85 of the Private Acts of 1987; Chapter 74 of the Private Acts of 1995; Chapter 57 of the Private Acts of 2001 and Chapter 67 of the Private Acts of 2024; and any other acts amendatory thereto, relative to the privilege tax upon hotel occupancy in Shelby County.

Impact

The implications of this bill are significant for local revenue generated from tourism and sporting events. By tying the repeal of the hotel occupancy tax to the status of an NBA team, the bill seeks to stabilize funding streams vital for maintaining the Cook Convention Center and other related infrastructure in the area. The allocation of tax revenues is also redefined; after the NBA franchise departs, 61.25% of the revenues will go to the Convention and Visitors Bureau, while the remaining 38.75% will be allocated to Shelby County for any permitted usage within the parameters of this act.

Summary

House Bill 2666 aims to amend local legislation regarding the privilege tax upon hotel occupancy specifically in Shelby County, Tennessee. The bill revises the conditions under which this tax is repealed, linking it to the continued presence of a National Basketball Association (NBA) franchise inhabiting an indoor sports facility. The current provisions would be replaced to ensure that the tax remains in place until either the NBA franchise leaves the facility or until June 30, 2050, at the earliest. The change marks a significant update to prior legislation passed in the 20th century, recognizing the evolving relationship between city infrastructure and professional sports.

Sentiment

General sentiment surrounding HB2666 appears to be cautiously supportive among local lawmakers who see the financial benefits that the NBA may bring to the region through tourism and associated events. However, there are likely concerns regarding reliance on a singular sport franchise for local economic stability, demonstrating a degree of apprehension about the bill's long-term implications for the county’s fiscal health.

Contention

One notable point of contention with HB2666 centers around the lasting commitment to the hotel occupancy tax and its dependency on the presence of a sports franchise, suggesting a potential vulnerability in financial planning for the county. Critics may argue that this approach improperly links critical local funding to the fortunes of a single commercial entity, potentially creating budgetary shortfalls should the NBA franchise relocate or undergo financial instability. The bill requires a supermajority approval from the local legislative body, adding another layer of deliberation regarding its enactment.