Tennessee Legislature Advances Bill Creating State Board for Nashville Tourism Revenue
Tennessee lawmakers advance legislation creating a state-majority board to control $330 million in Nashville tourism revenue, with the Comptroller’s Office providing oversight.
NASHVILLE, TENNESSEE — The Tennessee Legislature advanced legislation Tuesday to establish a state-controlled board overseeing Nashville’s tourist tax revenue. This new entity will manage $330 million in combined funds under the Tennessee Comptroller’s Office.
House Bill 2085 proposes a nine-member joint capital tourism board to direct $30 million in excess revenue from Nashville’s tourism development zone and $300 million in surplus funds held by the Nashville Convention Center Authority.
State Majority Control
The proposed board structure grants the state majority control over Nashville’s tourism revenue decisions. Governor Bill Lee, House Speaker Cameron Sexton, and Senate Speaker Randy McNally would each appoint two members to the nine-person board.
The remaining three positions would be filled by appointees from Nashville Mayor Freddie O’Connell, the Metro Nashville Convention Center Authority president, and the Nashville Convention and Visitor’s Corp.
Revenue Split Justifies Structure
Comptroller Jason Mumpower explained the state-heavy composition during Tuesday’s committee hearing, detailing the financial breakdown behind the decision.
“That’s why the board is structured the way it is, and Metro was hand in hand when the structure of the board was created,” Mumpower said, noting that 70% of revenue generated by the Nashville Convention Center Authority in downtown Nashville’s tourism development zone comes from state funds, while 30% belongs to Metro Nashville.
The Comptroller’s Office would staff the new board without requiring additional state funding, according to Mumpower. He said the office already manages similar entities including the State Funding Board, the Tennessee State School Bond Authority, and the Tennessee Local Development Agency.
Legislative Progress
The House Government Operations Committee gave unanimous approval to the measure Tuesday. However, the bill faces scheduling delays in other committees.
The Senate finance committee postponed consideration until Wednesday, while the House finance subcommittee delayed action until the legislature adopts a budget. The legislation carries an estimated cost of $19,000.
The new board would have authority over significant tourism-related funding decisions in Nashville’s downtown corridor, including potential property tax assistance for downtown establishments. The measure is part of ongoing efforts by state Republicans to increase oversight of local revenue streams in Tennessee’s largest city.
Tourism development zones allow local governments to capture increased tax revenue from designated areas experiencing growth, typically directing those funds toward infrastructure improvements and economic development projects that support continued tourism expansion.
