The Center Square [By Jon Styf] –
A Tennessee Senate subcommittee approved extending a sales tax deal where the Memphis Grizzlies retain sales tax for tickets, food and drink, parking and merchandise through 2059 on Tuesday.
The deal goes along with a $350 million proposed to be given from the state to Memphis for renovations at the Grizzlies’ FedExForum and Memphis’ Liberty Stadium.
The fiscal note on Democrat-sponsored Senate Bill 891 said it gives Memphis more than $5 million per year in sales tax but the bill won’t be seen as a state budget impact because that money has always gone back to the sports authority.
The state allows for similar deals for many of its professional sports franchises but sunsets those deals after 30 years. In this case, it would extend the deal, which currently runs to Nov. 1, 2031, through 2059. The Grizzlies played their first game in Memphis on Nov. 1, 2001, after the franchise moved from Vancouver.
Memphis has also requested to increase the allowance for Shelby County to create a 5% hotel/motel tax, up from the current 3.5% tax, as well as asking the state to extend an allowance for a county car rental tax through.
That tax fund including sales and the other taxes collected $18.2 million in 2020 and $22.5 million in 2021 during the COVID-19 pandemic.
About the Author: Jon Styf, The Center Square Staff Reporter – Jon Styf is an award-winning editor and reporter who has worked in Illinois, Texas, Wisconsin, Florida and Michigan in local newsrooms over the past 20 years, working for Shaw Media, Hearst and several other companies. Follow Jon on Twitter @JonStyf.
