Tennessee HB 1499: Taxes, Alcoholic Beverages - As enacted, extends by one year the manner in which liquor-by-the-drink tax proceeds are distributed to local political subdivisions. - Amends TCA Title 4; Title 5; Title 6; Title 7; Title 8; Title 9; Title 49; Title 57 and Title 67.

Bill Text

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<BillNo> <Sponsor>

HOUSE BILL 1499
By Hulsey

AN ACT to amend Tennessee Code Annotated, Title 4;
Title 5; Title 6; Title 7; Title 8; Title 9; Title 49; Title
57 and Title 67, relative to tax revenue
distributions.

BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF TENNESSEE:
SECTION 1. Tennessee Code Annotated, Section 57-4-306(b), is amended by deleting
the subsection and substituting instead the following:
(b)
(1) From July 1, 2017, until June 30, 2018, the proceeds received by a
local political subdivision pursuant to subdivision (a)(2) shall be distributed by the
local political subdivision in the following manner:
(A) One-half (1/2) of the proceeds shall be distributed as follows:
(i) If the county school system is the only LEA in the
county, then to the county trustee for the county school system
from the collection of taxes in the county or any city exercising the
privilege authorized under § 57-4-301(c);
(ii) If a city exercises the privilege authorized under § 57-
4-301(c) and operates a kindergarten through grade twelve (K-12)
school system, then the city recorder shall retain the collections
for the city school system;
(iii) If a city exercises the privilege authorized under § 57-
4-301(c) and operates a city school system that is not a
kindergarten through grade twelve (K-12) school system, then to
the city recorder:

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(a) In the amount the percentage that the 2016-
2017 average daily attendance (ADA) of the students in
the city school system is to the 2016-2017 ADA of public
school students residing in the city who attend either the
city school system or the county school system with the
remaining amount distributed to the county trustee for the
county school system, if the city lies entirely in a single
county; or
(b) In the amount the percentage that the 2016-
2017 ADA of the students in the city school system is to
the 2016-2017 ADA of public school students residing in
the city who attend either the city school system or a
county school system with the remaining amount divided
between the counties based on where the tax was
collected and distributed to the county trustees for the
county school systems, if the city lies within two (2) or
more counties;
(iv) Notwithstanding § 49-3-315, if a city exercises the
privilege authorized under § 57-4-301(c), but does not operate a
city school system, then to the county trustee for the county
school system;
(v) If a special school district lies, in whole or in part, within
a city that exercises the privilege authorized under § 57-4-301(c),
then to the appropriate official acting for the special school district
in the amount the percentage the ADA of public school students
residing in the city and attending the special school district is to
the total ADA of city public school students who attend either the

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special school district or the county school system with any
remaining amount distributed to the county trustee for the county
school system;
(vi) Notwithstanding § 49-3-315, if a county exercises the
privilege authorized under § 57-4-301(c) and one (1) or more city
school systems operate within the county, then to the county
trustee for the county school system any tax revenues collected
outside the boundaries of cities exercising the privilege authorized
under § 57-4-301(c) that have city school systems; or
(vii) If a city that lies in two (2) or more counties exercises
the privilege authorized under § 57-4-301(c) but does not operate
a city school system, then tax revenues collected in the city shall
be divided between the counties based on where the tax was
collected and distributed to the county trustees for the county
school systems; and
(B) The other one-half (1/2) of the proceeds shall be distributed
as follows:
(i) Collections of gross receipts collected in unincorporated
areas, to the county general fund; and
(ii) Collections of gross receipts in incorporated cities and
towns, to the city or town wherein such tax is collected.
(2) From July 1, 2018, until June 30, 2019, the proceeds received by a
local political subdivision pursuant to subdivision (a)(2) shall be distributed by the
local political subdivision in the following manner:
(A) One-half (1/2) of the proceeds shall be distributed as follows:

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(i) If the county school system is the only LEA in the
county, then to the county trustee for the county school system
from the collection of taxes in the county or any city exercising the
privilege authorized under § 57-4-301(c);
(ii) If a city exercises the privilege authorized under § 57-
4-301(c) and operates a kindergarten through grade twelve (K-12)
school system, then the city recorder shall retain the collections
for the city school system;
(iii) If a city exercises the privilege authorized under § 57-
4-301(c) and operates a city school system that is not a
kindergarten through grade twelve (K-12) school system, then to
the city recorder:
(a) In the amount the perc