This is not the behind-the-scenes work of Lamar Wyatt of the ABC hit Nashville despite the fact that it does have the appearance of a deal that he would love.
That aside, last night at the actual Nashville Metro Council meeting the city council enacted Legislation to tax sales of services and tangible personal property sold at retail within the central business district. Revenue from the new tax (labeled a "fee") will be used to promote the new Music City Center.
The new tax will be .25% of the sales price of the taxable items and will be collected by the Tennessee Department of Revenue in the same manner as state sales tax is collected. Sales of professional services, lodging, concerts, sporting events, newspapers, long-term parking, and liquor are not subject to the new tax.
The boundaries of the district are roughly the Cumberland River to the east, Lafayette Street to the south, 8th Avenue to the West and Charlotte avenue to the North.
Further background on the the tax/fee can be found in this link to the Tennessean Article.
For tax professionals, the legislation is light on details regarding when a sale is considered to be in the district and the exemptions are similarly vague. What about computer software... Don't get me started.
Because the tax is so low it is hard to imagine much push back when enforcement begins in January 2014, especially when considering it only adds 1cent to a $4 beer according to sponsors. We will see.
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