Surcharge authorized.
Metropolitan Code of Nashville and Davidson County § 5.32.190
in effect5.32.190 - Surcharge authorized.
A. In addition to state tax provided in T.C.A. § 67-4-1901, the surcharge or tax of one percent of the gross proceeds derived from the lease or rental of any passenger motor vehicle, truck or trailer for a period of five days or less; provided, that said surcharge or tax will not apply to any automobile rented as a replacement vehicle, the cost of which is covered by insurance or by a business that rents a truck or trailer for the purpose of transporting goods, or by any individual or business that rents a vehicle as a replacement while the renter's vehicle is being repaired, replaced or serviced; provided further, that the individual presents to the renter upon return of the rented vehicle a copy of the repair or service invoice or signs a statement under penalty of perjury that the lease or rental of the vehicle is used as a replacement for a vehicle that is being repaired, replaced or serviced. The surcharge or tax shall not apply to any vehicle rental transaction in which an entity whose principal business activity is the sale or service of new and used motor vehicles is the renter. This surcharge or tax shall apply to the gross proceeds from the rental agreement, excluding any sales tax imposed by Chapter 6 of the Tennessee Code Annotated. The surcharge or tax shall also be subject to the exemptions provided by T.C.A. § 67-4-1906. The surcharge or tax shall not be subject to a credit provided by T.C.A. § 67-4-1903 and shall be implemented consistent with existing tax policies and procedures of the department of revenue and of the remainder of this chapter. The surcharge or tax shall be remitted to the department of finance.
B. All revenue received by the metropolitan government from this surcharge or tax shall be deposited into a metropolitan government fund entitled "The Convention Center Fund," which shall be used for the purpose of paying costs associated with modification or construction of a publicly-owned convention center in excess of four hundred million dollars of costs within the territory of the metropolitan government. If the revenues from such surcharge or tax in any fiscal year exceed the total of such debt service requirements for that year, such surplus revenue thus accruing shall be retained by the metropolitan government as a reserve fund for future debt service requirements.
C. The surcharge for rental vehicles authorized pursuant to this article shall terminate once the total bonded indebtedness incurred for the construction of a convention center facility by the metropolitan government has been paid in full as to bond principal and interest, including expenses of bond sale or sales, and the metropolitan council has repealed the provisions of this article. Provided however, that any funds remaining in the reserve fund after all obligations imposed under the provisions of this section have been fulfilled, shall be used by the governmental board or agency responsible for operation of the convention center for use by it in the promotion and advertisement of the convention center facilities.
(Ord. BL2012-156 § 6, 2012; Ord. BL2007-1557 § 5, 2007)
Source: Metropolitan Government of Nashville and Davidson County, Metropolitan Code and Charter (Municode Library, library.municode.com)URL: https://library.municode.com/tn/metro_government_of_nashville_and_davidson_county/codes/code_of_ordinances?nodeId=CD_TIT5REFI_DIVIITA_CH5.32VETA_ARTIIIREVESU_5.32.190SUAUFetched: 10/28/2026