Big week for Titans stadium financing proposals
Gov. Bill Lee's proposal for the state to commit $500 million in bonds for a new indoor stadium cleared the legislature Thursday after some complicated legislative maneuvering.
- The focus now turns to a proposal to increase Nashville's hotel-motel tax by 1 percentage point.
Why it matters: The new stadium will cost about $2 billion, and it's hard to imagine a scenario in which the project comes to fruition without the hotel-motel tax funds.
- The legislation would allow the city to increase its tax on hotel-motel rooms from 6% to 7%.
- A fiscal note attached to the bill estimates the 1 percentage point increase will generate about $10 million annually. But Nashville Convention and Visitors Corp. CEO Butch Spyridon told Axios recently the proposal would actually create up to twice that each year by the time the increase takes effect.
Yes, but: The hotel-motel tax increase is hardly a sure thing. Conservative lawmakers argued raising tourism taxes mainly affects constituents statewide who travel to Nashville.
- Other lawmakers, such as Rep. Jerry Sexton (R-Bean Station), argued the stadium project ought to be privately financed.
- Spyridon says Nashville's hotel sector supports the increase because it will generate more revenue for their businesses in the long run.
What's next: The hotel-motel tax bill is scheduled to be considered by the full House on Monday and in the Senate finance committee on Wednesday.
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