The bill which would allow Shelby County to reallocate funds raised from the hotel-motel tax was moved to next week’s Tennessee Senate State and Local Government Committee after concerns were raised about the continuing negotiations for how Memphis Tourism’s budget would be impacted.
State Sen. Brent Taylor, a Republican representing a portion of Shelby County and the bill’s senate sponsor, told committee members initially that discussions on how the reallocation of the tax would be divided up were still ongoing but was confident in getting a consensus among the stakeholders in the coming weeks.
“We have to make sure we do what we can to keep a dedicated revenue stream to the Tourism and Convention Visitors Bureau so there’s still more work to be done with this bill once it elevates out of committee,” Taylor said.
Some legislators expressed concern about passing the bill through committee when there is still work left to be done.
Wayne Tabor, CEO of the Metropolitan Memphis Hotel and Lodging Association, and Doug Browne, the President of Peabody Hotels and Resorts, expressed concern over the tax change and its impact on Memphis Tourism’s bottom line.
“In Memphis, we do $4 billion a year in hospitality in the hospitality industry and we have 50,000 jobs in Shelby County that’s affected by hospitality,” Tabor said. “This bill will cut the Convention Visitors Bureau, Memphis Tourism’s annual budget to be able to promote Memphis and to bring visitors to Memphis and Shelby County.”
