SB734 extends by six years the authority for Nashville-Davidson County to continue collecting a hotel occupancy tax of up to $2.50 per room, instead of $2.00. The extra $0.50 will continue to fund the county’s Event and Marketing Fund, which brings in about $5 million annually. The bill also extends the terms of the Event and Marketing Fund Committee members.
The Tennessee State House of Representatives passed SB734 on March 24, 2025 by a vote of 58 to 22. We have assigned pluses to the nays because this bill extends a local tax increase and continues funneling millions in taxpayer-generated revenue into government-controlled marketing efforts—an approach that is not constitutionally grounded. Instead of letting the free market determine tourism and event success, SB734 expands the role of government in promoting private industry, embracing corporate welfare, distorting market forces, and encouraging cronyism. Using tax dollars to subsidize entertainment, tourism, or large venues through an unelected marketing committee is not the proper role of government. Legislators should oppose policies that empower government to pick winners and losers.
