Proposed Tax Hike Targets Visitors to Help Fund New Stadium

The Tennessee legislature will consider an increase in the hotel-motel tax that would be used for debt service on the project.

Kirby Lee/USA Today Sports

A big part of the appeal of a new, enclosed stadium for downtown Nashville is the potential for it to host major events that attract people from across the country or even the world.

With that in mind, Tennessee lawmakers intend to have visitors help pay for it.

The state legislature is expected to vote soon on a proposed hike to the hotel-motel tax to help fund the project, which would serve as the new home of the Tennessee Titans, according to multiple reports Wednesday. Committees are scheduled to begin discussion of the plan next week.

The increase could be as much as 33 percent, from 6 percent to 8 percent, and would generate $20 million annually, give or take a few million.

Nashville Convention and Visitors Corp. CEO Butch Spyridon told Axios Nashville, which first reported the news, that the local hotel-motel industry was “unanimous” in support of the plan and expressed the belief that, “If we're going to do this, it's got to be visitor-funded.”

The proposed legislation would empower Metro Nashville government to raise the hotel-motel tax and specifies that the funds would pay for debt service on construction of the new stadium. Nashville residents would not bear any of the cost.

Governor Bill Lee wants the state to contribute $500 million to the proposed venue, which is expected to cost close to $2 billion. Speaker of the Tennessee House of Representatives Cameron Sexton recently said that Metro Nashville would contribute the same amount and the NFL franchise would pay $700 million.

Titans officials have set an admittedly ambitious goal to complete construction in time for the start of the 2026 NFL stadium. The stadium would be built on what is currently parking lots on the east side of Nissan Stadium.

An enclosed stadium, one with a retractable roof, would create the possibility for Nashville to host the Super Bowl, NCAA Men’s Final Four, College Football Playoff contests, Wrestlemania and more.