General Regulations

Metropolitan Code of Nashville and Davidson County tit. 5, div. II, ch. 5.12, art. I

in effect

Metropolitan Code of Nashville and Davidson County § 5.12.010 Definitions.

5.12.010 - Definitions. As used in this chapter, unless a different meaning clearly appears from the context, the following definitions shall apply: "Consideration" means the consideration charged, whether or not received, for the occupancy in a hotel valued in money whether to be received in money, goods, labor or otherwise, including all receipts, cash, credits, property and services of any kind or nature without any deduction therefrom whatsoever. Nothing in this definition shall be construed to imply that consideration is charged when the space provided to the person is complimentary from the operator and no consideration is charged to or received from any person. "Hotel" means any structure, or any portion of any structure, which is occupied or intended or designed for occupancy by transients for dwelling, lodging or sleeping purposes within the area of the jurisdiction of the metropolitan government, and includes any hotel, inn, tourist court, tourist camp, tourist cabin, motel or any place in which rooms, lodgings or accommodations are furnished to transients for a consideration. "Large hotel" means a hotel with at least one thousand rooms adjacent to or operated in connection with exhibition hall space of at least one hundred thousand square feet. "Metropolitan government" means the Metropolitan Government of Nashville and Davidson County. "New rooms" means any rooms of a large hotel which first become available for occupancy by transients on or after January 1, 1994. "Occupancy" means the use or possession or the right to the use or possession, of any room, lodgings or accommodations in a hotel for a period of less than thirty continuous days. "Operator" means the person operating the hotel whether as owner, lessee or otherwise. "Person" means any individual, firm, partnership, joint venture, association, social club, fraternal organization, joint stock company, corporation, estate, trust, business trust, receiver, trustee, syndicate or any other group or combination acting as a unit. "Premier tourist destination area" means a geographical area of the metropolitan government that contains a large hotel, a theme park, golf courses, water theme parks, entertainment complexes, restaurants and other tourist-related activities and businesses. "Tax collection official" means the metropolitan department of finance or its designate or the county clerk. "Tourism" means the planning and conducting of programs of information and publicity designed to attract to the area within the jurisdiction of the metropolitan government tourists, visitors and other interested persons from outside the area and also encourage and coordinate the efforts of other public and private organizations or groups of citizens to publicize the facilities and attractions of the area for the same purposes. It also means acquisition, construction and remodeling of facilities useful in the attraction and promoting of tourist, conventions and recreational business. "Tourist commission" means a seven-person body established subject to the same local organic law as other boards and commissions established by the Charter of the metropolitan government. "Transient" means any person who exercises occupancy or is entitled to occupancy for any rooms, lodgings or accommodations in a hotel for a period of less than thirty days. (Ord. 96-166 § 1, 1996; Ord. 93-845 § 1, 1993; prior code § 15-1-45)

Metropolitan Code of Nashville and Davidson County § 5.12.020 Tax imposed—Amount.

5.12.020 - Tax imposed—Amount. There is levied a privilege tax upon the privilege of occupancy in any hotel of each transient in an amount of six percent of the consideration charged by the operator. The tax so imposed is a privilege tax upon the transient occupying such room and is to be collected and distributed as provided in this chapter. The proceeds from such tax shall be retained by the metropolitan government and distributed in accordance with T.C.A. § 7-4-110(b). The tax so imposed is a privilege tax upon the transient occupying the room of a hotel located within the territory of the metropolitan government. (Ord. BL2007-1557 § 1, 2007; Ord. 2002-1049 § 1, 2002; Amdt. 1 with Ord. 99-1678 § 2, 1999; prior code § 15-1-46)

Metropolitan Code of Nashville and Davidson County § 5.12.030 Tax separate from other taxes.

5.12.030 - Tax separate from other taxes. The tax levied in this chapter shall be in addition to all other taxes levied or authorized to be levied whether in the form of excise, license or privilege taxes, and shall be in addition to all other fees and taxes now levied or authorized to be levied. (Prior code § 15-1-55)

Metropolitan Code of Nashville and Davidson County § 5.12.040 Collection—Invoice procedure.

5.12.040 - Collection—Invoice procedure. The occupancy privilege tax shall be added by each and every operator in each invoice prepared by the operator for occupancy of his hotel, such invoice to be given directly or transmitted to the transient, and shall be collected by such operator from the transient and remitted to the metropolitan department of finance. (Prior code § 15-1-47)

Metropolitan Code of Nashville and Davidson County § 5.12.050 Remittance—Accounting expense deduction.

5.12.050 - Remittance—Accounting expense deduction. A. Remittance to Tax Collection Official. The tax levied shall be remitted by all operators who lease, rent or charge for any rooms to the metropolitan department of finance not later than the twentieth day of each month next following collection from the transient. The operator is required to collect the tax from the transient at the time of the presentation of the invoice for such occupancy whether prior to occupancy as may be the custom of the operator; the obligation to the metropolitan government entitled to such tax shall be that of the operator. B. Deduction for Accounting Expense. For the purpose of compensating the operator in accounting for and remitting the tax levied by this chapter, the operator shall be allowed two percent of the amount of tax due and accounted for and remitted to the metropolitan department of finance in the form of a deduction in submitting his report and paying the amount due by him, provided the amount due was not delinquent at the time of payment. (Ord. BL2012-156 § 1, 2012; Ord. 96-166 § 2, 1996; prior code § 15-1-48)

Metropolitan Code of Nashville and Davidson County § 5.12.060 Distribution of proceeds.

5.12.060 - Distribution of proceeds. A. Except for the taxes levied pursuant to T.C.A. § 7-4-102(c), the proceeds from the tax levied in this chapter shall be retained by the metropolitan government and distributed as follows: (1) One-third of the proceeds in its entirety shall be used for the direct promotion of tourism; (2) One-third of the proceeds in its entirety shall be maintained in a reserve fund to be used exclusively for the purpose of modifying, constructing, financing and operating a convention center; (3) One-sixth of the proceeds shall be used for tourist-related activities which may include funding a convention center; and (4) One-sixth of the proceeds shall be deposited in the general fund of the metropolitan government. Effective July 1, 2015, the portion of transient occupancy privilege tax revenue deposited into the general fund that was generated by short term rental properties regulated under Title 6 of the Metropolitan Code shall be exclusively dedicated for appropriation to the Barnes Fund for Affordable Housing established pursuant to Substitute Ordinance No. BL2013-487. B. If the total tax collections received pursuant to this section and dedicated to the purposes contained in subsections A(1), A(2) and A(3) exceed the amounts necessary to fund the obligations thereunder, the excess shall be placed in a reserve fund and expended only for tourist-related activities. C. The proceeds from the tax authorized by T.C.A. § 7-4-102(c) shall be retained by the metropolitan government and be used exclusively for tourist-related activities within the area of the metropolitan government. D. Proceeds of this tax may not be used to provide a subsidy in any form to any hotel or motel. (Ord. BL2020-187 § 5, 2020; Ord. BL2017-583 § 1, 2017; Ord. BL2015-1056 § 1, 2015; Amdt. 1 to Ord. BL2007-1557 § 2, 2007; Ord. BL2007-1557 § 2, 2007; Ord. 2002-1049 § 2, 2002; Ord. 99-1678 § 2, 1999; Ord. 93-845 § 2, 1993; prior code § 15-1-54)

Metropolitan Code of Nashville and Davidson County § 5.12.070 Records—Inspection.

5.12.070 - Records—Inspection. It shall be the duty of every operator liable for the collection and payment of any tax imposed by this act to keep and preserve for a period of three years all records necessary to determine the amount of such tax, which records the tax collection official shall have the right to inspect at all reasonable times. (Prior code § 15-1-51)

Metropolitan Code of Nashville and Davidson County § 5.12.080 Offer to absorb tax prohibited.

5.12.080 - Offer to absorb tax prohibited. No operator of a hotel shall advertise or state in any manner whether directly or indirectly that the tax or any part thereof will be assumed or absorbed by the operator, or that it will be added to the rent, or that, if added, any part will be refunded. (Prior code § 15-1-49)

Metropolitan Code of Nashville and Davidson County § 5.12.090 Delinquent payments—Penalties and interest.

5.12.090 - Delinquent payments—Penalties and interest. Taxes collected by an operator which are not remitted to the tax collection official on or before the due dates are delinquent. An operator shall be liable for interest on such delinquent taxes from the due date at the rate of eight percent per year, and in addition, a penalty of one percent for each month or fraction thereof such taxes are delinquent. Such interest and penalty shall become a part of the tax required in this chapter to be remitted. Wilful refusal of an operator to collect or remit the tax or wilful refusal of a transient to pay the tax imposed is unlawful and shall constitute a misdemeanor. Any fine levied herein shall be applicable to each individual transaction involving lodging services paid by a customer to the operator in those cases when the operator fails or refuses to pay the tax payable. (Prior code § 15-1-50)

Metropolitan Code of Nashville and Davidson County § 5.12.100 Administration and enforcement.

5.12.100 - Administration and enforcement. A. In administering and enforcing the provisions of this chapter, the tax collection official shall have, as additional powers, those powers and duties with respect to collection of taxes provided in Title 67 of Tennessee Code Annotated or otherwise provided by law. B. Upon any claim of illegal assessment and collection, the taxpayer shall have the remedy provided in Tennessee Code Annotated, Section 67-1-911, it being the intent of this act that the provisions of law which apply to the recovery of state taxes illegally assessed and collected be conformed to apply to the recovery of taxes illegally assessed and collected under the authority of this act, provided the tax collection official shall possess those powers and duties as provided in Tennessee Code Annotated, Section 67-1-707, with respect to the adjustment and settlement with taxpayers of all errors of taxes collected by him under the authority of this act and to direct the refunding of same. Notice of any tax paid under protest shall be given to the tax collection official and suit for recovery shall be brought against the tax collection official. (Ord. 90-1339 § 1 (15-7), 1990; prior code § 15-1-52)

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_CH5.12HOOCPRTA_ARTIGEREFetched: 10/28/2026