New state law gives Metro authority to hike hotel tax

Thanks to a newly passed state law, the Metro Council will have the authority to raise the city’s hotel tax 50 cents per room to create a tourism development fund designed to attract and keep major events.

This year, the state Legislature approved and Gov. Phil Bredesen signed into law a bill that permits Metro to increase its hotel privilege tax from $2 to $2.50 per occupied room.

The estimated $2.5 million to $3.5 million raised from that 50-cent increase will go into a Music City “Event and Marketing Fund,” which will be used for promoting tourism.

Walt Baker, the chief executive officer of the Greater Nashville Hotel & Lodging Association, said the new fund must go toward major events that have at least a $5 million economic impact on the city, such as the upcoming CMA Fest.

Read the complete story in the Nashville City Paper.