Behind-the-scenes tour of the current facility (video)
Funding Mechanisms
Completed Speaking Engagements
Campaign Facts
The cost of doing nothing
What others are saying
FAQ
THE MUSIC CITY CENTER 'S FINANCES: WHY THEY'RE A WIN / WIN
There seem to be misconceptions among some Nashville taxpayers about the purpose of a new convention center in downtown Nashville and how it will be paid for.
The funding mechanisms that have been identified to pay for the center are derived from existing and new visitor spending . No new sales taxes will be levied on Nashvillians . No new property taxes will be levied on Nashvillians . The funding plan, which has been validated by respected third party experts like Dr. Bill Fox at the University of Tennessee and KPMG, is as follows:
Funding mechanisms |
2% of current 5% hotel/motel tax - This is simply a redirection of some of the money from a tax that already exists on hotel/motel rooms. |
Growth of hotel/motel tax at 5.9% - This is a conservative estimate of the growth in hotel/motel tax money the city collects each year.
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Raising hotel/motel tax by 1% - This would be a small increase in the tax on hotel/motel rooms. For example, an additional 79 cents would be applied to a $79.99 hotel room.
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$2 Convention Center fee per room/per night,county-wide on all hotels/motels - This is a straightforward fee that would add $2 to the price of every hotel room in the city.
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Tourism Development Zone incremental tax - State legislation passed this year allows Metro to collect the difference between the sales tax revenues generated in and around the convention center and the countywide average. It doesn't mean that sales tax rates will be higher; it just defines how the money will be used.
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Rental car tax at 1% - Again, a small increase on a tax that is primarily applied to visitors. The Coalition is even exploring legislation that would exempt Nashville residents who rent a car.
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Airport ground transportation departure fee - This would be a small fee applied to travelers who take taxis, shuttles, buses and other transit from the Nashville International Airport .
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Sales tax revenue associated with the MCC - State legislation passed this year also allows Metro to collect the sales tax revenue generated by the convention center, such as admission, parking and food and drink, and use it to pay for the construction. The sales tax rate in that area will be the same as anywhere else in the county; we'll just be able to use the money to pay for the center.
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The sources above will generate more than enough revenue to pay for the estimated $36 million annual debt payment for the new convention center.
Our current downtown convention center was paid for with hotel/motel taxes and has never put added burden on Nashville residents in its 20 years of operation. In fact, it has generated much-needed revenue from visitors, which is the only way we keep our property taxes low.
The Music City Center will be funded essentially the same way, and that's why it's erroneous to compare a new downtown convention center to the Gaylord Entertainment Center , LP Field or any other large public facility in Nashville other than the Nashville Convention Center . They were all financed differently.
When you consider the facts, it's easy to see why the Music City Center is a WIN / WIN for Nashville .
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