Law Must Change In Order For Restaurant Tax To Be Implemented

Cumberland County will have to ask the state for permission to implement a 1-percent restaurant privilege tax.

The county wants to implement the tax as a way to generate funding for the proposed expo center.

According to Crossville Attorney Will Ridley, state law says municipalities can only charge the tax if located in a county considered a tourism resort district.

“Because of that issue, it’s my opinion that we can’t charge the tax at this time,” Ridley said. “That’s not to say that the county or the city could not petition the legislature to start an initiative to change the law and allow this to happen.”

Currently, only Sevierville, Gatlinburg, and Pigeon Forge collect the restaurant privilege tax.

Bristol Tennessee unsuccessfully tried to get the law changed a few years ago, using Bristol Motor Speedway as their tourist attraction.

The County plans to request state lawmakers to change the law.

The city of Crossville has approved a resolution to send a letter supporting the county’s concept of constructing an expo center.

“I think it would be good for our community,” Crossville Mayor James Mayberry said. “At this time, the tax doesn’t appear to be an option for our community.”

County officials believe the facility would also bring more tourism, new entertainment, and increases in revenue to both the city and county.