New ‘Tourist Development Zone’ Proposed

A new ‘tourist zone’ is in the works to help pay for Nashville’s new downtown Convention Center.

The proposed “tourist development zone” will cover all of downtown and stretch up West End almost to the Vanderbilt area.

Metro Finance Director Rich Riebeling says as proposed, any state and local sales taxes generated in the zone beyond the current level will go to the new convention center.

“The important thing about is that the state is willing to give up the sales tax that it collects that would normally go to the state but instead of going to the state, it will come back to the local government to pay for the debt on the convention center project.”

Riebeling says his office is in the process of calculating how much money the zone will generate for the convention center. The taxes collected in the zone will be in addition to four other tax increases added last year to various tourism-related activities like taxis serving the airport.

City officials have estimated the new convention center will cost at least $500 million. Because the zone will re-appropriate state and local taxes, both the Metro Council and the General Assembly will have to approve it.

The Metro Council will take up the issue tonight.