Tourism
Tourism actually defines as a social, cultural and economic phenomenon which entails the movement of people to countries or places outside their usual environment for personal or business/professional purposes.
Tourism can drive a very strong economy, no matter the state. It can positively build strong economies, jobs, and uplifting and brighter societies and towns.
While there are other top “Tourism States” in our United States, we are still going to focus on Tennessee and its fastly growing stats and tourism ranking.
The top 15 Tourism States in The United States are as follows from the 15th to #1. Keep this in mind, out of all 15 of these, Tennessee is the only state that does not have either a beach, a casino, or both.
Michigan
Massachuests
New Jersey
Hawaii
Tennessee
Pennsylvania
Virginia
North Carolina
Georgia
Illinois
Nevada
Texas
New York
Florida
California
The numbers we will be working with are 2022 numbers because we will not get 2023 numbers until September of this year. So we can only imagine that we will see even more growth this year when the stats are released.
Tennessee tourism generated $29 billion in direct visitor spending and saw 141 million visitors to the state in 2022
Travelers in Tennessee spent an estimated $79 Million / day which accounted for 15% of Tennessee’s retail and non-retail sales in 2022.
Mark Ezell, our Commissioner of the Tennessee Department of Tourist Development had this to say about 2022’s numbers.
“Tennessee is thriving as tourism is soaring. Our industry’s hard work is paying off with record levels of visitor spending and significantly outpacing inflation.”
Key Highlights from Economic Impact of Travel 2022 report
Tennessee Tourism generated $28.9 billion in direct visitor spending in 2022, up 19% from 2021.
International visitation is quickly returning, as spending reached $670 million, a 278% increase from 2021 and near pre-pandemic levels (72% recovered to 2019).
Tennessee saw 141 million visitors in 2022, up 10.5% year-over-year. Travelers in Tennessee spend an estimated $79 million per day.
Visitor spending generated $2.9 billion in state and local tax revenue. Without tourism, each Tennessee household would have to pay an additional $1,100 in taxes each year.
Tennessee ranks 11th in the nation for travel spending, the highest rank the state has ever achieved and the fastest-growing state in the top 40 since 2018.
County Success Stories
Nashville visitor spending increased 35% year-over-year.
Sevier Co. held on to pandemic gains in visitor spending with a 9.4% year-over-year increase.
Davidson Co. aka the Nashville area and the six contiguous counties (Cheatham, Robertson, Sumner, Wilson, Rutherford, Williamson) saw a 19.5% year-over-year increase in visitor spending.
Shelby, Tipton and Fayette counties combined for a 9.75% year-over-year visitor spending increase.
Knox Co. and surrounding counties experienced an 11.9% year-over-year increase in visitor spending.
Hamilton Co. aka Chattanooga and surrounding counties saw a 9.6% year-over-year increase in visitor spending.
Tri-Cities (Kingsport, Johnson City and Bristol) saw an 11.4% year-over-year increase in visitor spending.
Since April of 2021, Leisure and Hospitality Revenues have recovered at record numbers.
344,000+ new jobs in the industry in 2022
Almost $2 Million in Sales and Usage Taxes collected in 2022
Over $25 Billion in Gross Taxable Sales in this industry, alone!
Visitor Spending and growth in 2022 for Tourism
Domestic Visitor Spending (US) - over $28 Billion (up 17.% from 2021)
International Visitor Spending - over $665 Million (up 277.9% from 2021)
Labor Income Generated and growth for Tourism
Domestic (US) - Over $7.5 Billion (Up 17.7% from 2021)
International - Over $170 Million (Up 95.7% from 2021)
Employment Generated and growth for Tourism
Domestic (US) - Over 181,000 new jobs (Up 14.2% from 2021)
International - Over 3,000 new jobs (Up 67.2%)
Tax Revenue Generated in Tourism
Domestic (US) - Over $4.5 Billion
International - Over $180 Million
Now, let’s talk about the top 10 of the most visited tourism spots in the state of Tennessee. These were last updated in early May of this year. However, before we get to those; according to Trip Advisor.com, sooo according to The People…the top 5 things to do in Sevierville, TN are as follows: Hillside Winery, Tennessee Legend Distillery on Newport Hwy, The Smoky Mountain Deer Farm and Exotic Petting Zoo, Tennessee Legend Distillery on Hwy 66, and The Tanger Outlet Malls. So…come do two of the top things to do the next time you are here…come see us at Tennessee Legend Distillery…sample with us, say hi, get some spirits, and check out our ever changing merchandise.
If you are one of the many travelers who believe the most visited national parks in The United States would be the Grand Canyon, Yellowstone, or Yosemite, you’ve probably never visited Tennessee. You may actually be shocked to learn that the number one most visited US National Park is, in fact, The Great Smoky Mountains or simply put…The Smokies.
As popular as The White House in D.C. is, Graceland is one of the top attractions in the country to be visited…when all it simply is…is a house. It sits at #2 in our list of Top 10 of Tennessee’s most visited areas.
Sitting at #3 is Dollywood. Dollywood has more than 50 rides spread across 11 themed areas and sees over 3 Million visitors, on average, a year. Some other highlights include live concerts, festivals, and the authentic coal-fired steam train.
Nashville, aka Music City USA sits at #4 in our Top 10. No American state can claim the rich musical tapestry that is evident everywhere in Tennessee. Nashville is hope to important music related attractions, including the Grand Ole Opry House, The Country Music Hall of Fame and Museum, and The Ryman Auditorium.
Memphis, the Home of The Blues comes in at #5 on our list. Beale Street, alone, located in downtown Memphis is the home of blues music. The like of Elvis, BB King, and Memphis Minnie got their big breaks here. You can also visit The Memphis Music Hall of Fame, The Smithsonian’s Memphis Rock n Soul Museum, and WC Handy Home and Museum.
Coming in at #6 is The Titanic Museum in Pigeon Forge, TN. A treasure trove of memories and artifacts from the RMS Titanic comes to life at this museum. The largest of its kind in the world, you actually feel like you have boarded the original vessel. It is built in the shape of the ship and at only half the actual scale of the original, but includes more than 400 Titanic-related artifacts in 20 galleries designed to create the illusion that you are actually on the ship. Also…said to be very haunted by many employees.
The National Civil Rights Museum in Memphis, TN comes in at #7 on our list. This is a national treasure and one of the most compelling attractions in Tennessee. The museum features hundreds of artifacts spread over two buildings, including The Lorraine Motel, the designated historic site where James Earl Ray murdered Martin Luthor King Jr. in 1968.
Coming in at #8 on our list is The Tennessee Aquarium in Chattanooga, TN. This aquarium has been educating visitors about water creatures and ecosystems for over 30 years. Situated on the banks of The Tennessee River, the aquarium immerses you in two experiences: The River Journey and The Ocean Journey. Featuring over 800 species, this is the largest aquarium in the state.
#9 on our list is Andrew Jackson’s Hermitage. Just a few miles east of Nashville is the plantation home of the seventh and, honestly, probably one of the meanest and worst presidents in history. Highlights include the park-like gardens and woods, as well as the tombe where both Jackson and his wife were laid to rest.
Last, but certainly not least, on our list is Lookout Mountain in Chattanooga, TN. Overlooking Chattanooga and offering some of Tennessee’s best views. Natural attractions include the gardens and High Falls at Rock City and Ruby Falls, the tallest and deepest accessible underground waterfall in The US.
Some honorable mentions on this list, if we were to go past 10 include the likes of Downtown Knoxville, The Parthenon in Nashville, Oak Ridge, TN and Morristown, TN for its one of a kind overhead sidewalks and Davy Crockett’s Home and Museum.
(Quick Break)
Taxes
Now it’s time to discuss some of our more hated aspects of Tennessee…Taxes, but how does Tennessee’s tax code compare to others?
Tennessee has no individual income tax, but it does have a flat 6.5 percent corporate income tax rate and levies a gross receipts tax. Tennessee also has a 7 percent state sales tax rate, a max local sales rate of 2.75 percent and an average combined state and local sales tax rate of 9.55 percent.
Tennessee’s tax system is ranked at 14th overall out of 50 on the 2023 State Business Tax Climate Index. So, some could easily say…look they all suck, but in the top 15 out of 50 States? Not terrible!
Because Tennessee does not have a personal income tax, distributions from pensions, 401(k)s, 403(b)s and IRAs are not taxed at the state or local level. Tennessee also does not collect income taxes on military retirement pay.
Now, technically, Tennessee does not “tax” Social Security benefits, but you may pay federal taxes on a portion of your Social Security benefits, depending on your income. Up to 50 percent of your benefits will be taxed if you file an individual tax return and make $25,000 to $34,000 in total income — or if you file jointly and as a couple make $32,000 to $44,000 in total income. Up to 85 percent of your benefits will be taxed by the federal government if your total income is more than $34,000 individually or $44,000 as a couple.
Let’s break down a little more on these Tennessee Taxes and try to make more of a clearer picture for you all:
Property tax is a local tax based on the value of your house and land, which is determined by county assessors. The average tax rate was 0.67 percent of a property’s assessed value in 2021, according to the Tax Foundation. Rates vary by county and municipality.
The state’s median property tax bill in 2021 and 2022 ranged from $463 in Fentress County to $2,588 in Williamson County.
Tennessee does not tax personal property such as cars and boats.
The Tennessee Comptroller of the Treasury has more information about how your property is assessed, how to calculate your tax bill and how to file an appeal. The Comptroller’s office also has online information to help you find more information about property taxes in your county.
What about sales and other taxes?
Sales tax: There is a 7 percent state sales tax on the sales of goods and services, but local taxes can raise the combined total to as much as 9.75 percent. The Tennessee Department of Revenue’s website has more information on local sales tax rates.
Groceries: The tax rate for most groceries in Tennessee is 4 percent. But prepared food (such as bakery goods and heat-and-eat meals), candy, dietary supplements and alcoholic beverages are taxed at 7 percent, plus the local sales tax rate.
Gas tax: The gasoline tax is 26 cents per gallon, plus a 1.4-cent special petroleum fee, for a total of 27.4 cents, according to the state Department of Transportation. These are paid by the wholesaler but included in the price at the pump.
Vehicle tax: Consumers must pay a special sales tax on vehicles registered in Tennessee, in addition to state and local sales tax. Find more information about how to calculate your tax on the state Department of Revenue’s website, or use this sales tax calculator. Cities and counties may also charge a local wheel tax when you register your vehicle or renew your registration.
Alcohol taxes: Liquor with more than 7 percent alcohol is taxed at $4.40 a gallon, while wine is taxed at $1.21 a gallon. Alcoholic beverages with 7 percent alcohol by weight or less, except for beer, are taxed at $1.10 a gallon. Beer with 8 percent alcohol by weight or less is taxed at $1.29 a gallon, which is the highest beer tax in the nation, according to the Tax Foundation.
These taxes are paid by the wholesaler or manufacturer but may be passed on to consumers. Tennessee consumers are ALSO charged a 15 percent tax — known as the liquor-by-the-drink tax — on most individual alcoholic beverages. Alcohol is also subject to state and local sales tax.
Lottery: Lottery winnings are not subject to state income tax, but winners can still expect to pay federal income tax.
The Pigeon Forge and Gatlinburg Tax Breaks:
One of the least known tax breaks in the state of Tennessee is the one that benefits Gatlinburg and Pigeon Forge, the two cities bordering the Great Smoky Mountains.
Twenty-three years ago, Gatlinburg needed to raise revenue and didn’t want to have to raise property taxes to do it. What it did instead was ask the legislature to allow the city to keep a small portion of the sales taxes collected in that city that otherwise would be turned over to the state. Gatlinburg’s argument was that the city needed more money to build roads and infrastructure than other cities because it had such a small population base, but such a large number of visitors—and produced such a disproportionately large amount of sales tax dollars. The obvious flaw in this argument is that Gatlinburg’s status as a major tourist destination gives the city one of the best hotel-motel tax collections in the state.
Flaws aside, the legislature bought it, passing legislation declaring Gatlinburg a “premier-type tourist resort.” In 1986, the legislature amended the “premier-type tourist resort” law to benefit Pigeon Forge as well.
Today, the law is one of the most complicated on the state’s books. But the bottom line is this: Between the two cities, Gatlinburg and Pigeon Forge get to keep about $5 million more in sales tax dollars annually than they would if those cities were treated like every other. As a result, Gatlinburg and Pigeon Forge have been able to build many things, such as schools, roads and new tourist attractions, while maintaining low property taxes.
Last year, House Speaker Pro Tem Lois DeBerry spoke against the Gatlinburg/Pigeon Forge arrangement on the House floor. Lobbyists Nelson Biddle and John New, who represent the two communities, are fighting hard to keep it in state law. “I’ve been fighting to keep it for 17 years,” Biddle says. “That law has paid for itself many times over. Just last year, it helped the city of Gatlinburg contribute $17 million toward the new aquarium there. During the first year of that aquarium’s operation, the state picked up an additional $1.6 million in sales taxes.”
(QUICK BREAK)
Fines
In Tennessee, fines and fees are used as both a punishment and a way to fund the justice system and other specific services. We are going to try to bring to light some of the fines that make Tennessee run the way it does, and why many tourists to the area get annoyed and confused when people like our bartenders ID them…no matter how much gray hair you have…
So yeah let’s cover the Alcohol side of Laws and Fines.
Tennessee alcohol laws apply to all residents and visiting individuals. These laws may vary to a degree locally. For instance, in 14 counties in the state, the sale of wines and spirits is prohibited by default. This means that these counties must legislate their laws to allow the sale of certain liquors.
Regardless of the nature of work, only persons 21 years and above are allowed to purchase and consume alcohol.
Using a fake ID to buy alcohol is considered a criminal offense, with fines that cost anywhere between $50 to $200.
Regardless of the age of the patron, in looks, a fine will be issued for not asking for ID, an out of date or expired ID; just as much as one would for an underage fake ID. The business will be punished regardless of the ID type.
The State sends strict agents and undercover shoppers on the regular to alcoholic establishments like restaurants, distilleries, and package stores.
Here are just a few of the fine levels for Alcohol related violations for vehicles and accidents.
For a first offense, the person shall be fined not less than three hundred fifty dollars ($350) nor more than one thousand five hundred dollars ($1,500);
For a second offense, the person shall be fined not less than six hundred dollars ($600) nor more than three thousand five hundred dollars ($3,500);
For a third offense, the person shall be fined not less than one thousand one hundred dollars ($1,100) nor more than ten thousand dollars ($10,000);
For a fourth or subsequent offense, the person shall be fined not less than three thousand dollars ($3,000) nor more than fifteen thousand dollars ($15,000);
For any offense while accompanied by a child under eighteen (18) years of age, the person shall be fined one thousand dollars ($1,000) in addition to the fine for the DUI offense
Now let’s take a look at a deeper fines and fees for Tennessee Justice Centers
Even if not convicted, people charged with crimes in Tennessee often face substantial fees, fines,taxes, and other financial obligations. Our state and local governments use these fees and fines both as punishment and to fund the criminal justice system itself. Many policymakers may not fully appreciate the extent of their use and the trade-offs they entail.
State law authorizes over 360 distinct fines and fees that courts, state agencies, local officials, and private entities can levy; over 250 of those are procedural fees and taxes that help cover operating state and local justice systems.
Punitive costs, including fines, restitution, and forfeitures, are used as punishment for failing to meet court requirements or breaking the law.
Some of the pretrial costs people can accrue vary from up to $60 per day for jail stay, bail to secure release, and $50-$200 for a public defender.
Trial and other court costs vary from up to $50 in document filing fees, $62-300 court charges, $2 for courtroom security, and $6 for issuing subpoenas.
Criminal fines range from $50-$50,000 depending on the type of offense; incarceration and community supervision costs vary from incidentals like uniforms and toilet paper to $50 per month for community supervision.
Research suggests that severe financial or other penalties do little to deter serious crimes.
Revenue from fees is unreliable; the Tennessee Bureau of Investigation had a $4 million hole in their FY 2021 budget due to uncollected fees.
The people most likely to accrue fines and fees tend to be poor, and those who are unable to pay can prolong their involvement in the justice system, making it harder to reintegrate.
The Buckle Debacle and its fines:
Tennessee’s seat belt law is curious in many ways. Even though state law requires you to wear a seat belt, the law specifically prohibits a police officer from pulling you over solely for not wearing one.
Police officers can only ticket someone for not wearing a seat belt if the person is also issued a citation for doing something else, like speeding.
The seat belt law also specifically exempts salesmen or mechanics who are “employed by an automobile dealer who test drives a motor vehicle if such dealership customarily test drives 50 or more motor vehicles a day.” And it doesn’t require governments to provide seat belts for school buses.
So what’s the point in having a seat belt law if it doesn’t apply to kids on their way to school?
There have been numerous legislative attempts to change the seat belt law to a primary offense law, so that a police officer can pull over someone for not wearing a seat belt. “If we were serious about preventing death, we’d require people to buckle up,” says Rep. Henri Brooks, a Memphis Democrat who has sponsored unsuccessful bills to make the seat belt law a primary offense law. “But around here, many people have an attitude that anything the government requires you to do is like Big Brother requiring you to do it.”
Time Check and Patreon Cut
More on Taxes in Tennessee
No. Tennessee does not have an estate or inheritance tax. On the federal level, estate tax can kick in for high net worth estates.
Yes. Low-income homeowners who are 65 and older or disabled, as well as disabled veteran homeowners or their surviving spouses, may be eligible for reimbursement of some or all of their property taxes through the Tennessee Property Tax Relief program. Contact your county trusteeor your city tax collector to apply. The Tennessee Comptroller of the Treasury has more information, including detailed eligibility requirements.Homeowners who are 65 and older and meet income requirements may also qualify for Tennessee’s Property Tax Freeze program if they live in a participating county or municipality. Find more information on the Tennessee Comptroller of the Treasury website.
Tennessee doesn’t have a personal income tax, therefore the state does not tax military pensions and active-duty pay. See this guide from the Tennessee Department of Revenue for more information.
Tennessee residents do not need to file a state income tax return because there is no personal income tax. The deadline for filing federal income tax returns is April 15, 2024.
Taxing This, But Not That…
Whether Tennessee needs to change its tax system from one that is mostly dependent on sales taxes to one that is dependent on a combination of income and sales taxes has been the talk of lawmakers for four years now. Regardless how that debate turns out, one thing is certain: Tennessee’s sales tax exemptions are sometimes preposterous and often arbitrary.
For starters:Baby food is taxed in Tennessee, but horse food is not.
Condoms bought in a condom machine are exempt, but condoms bought from a retailer are taxed.
Video games are exempt if you play them in an arcade, taxed if you buy them in a store and play them at home.
Lunches bought at school are exempt, but school lunch food bought at a grocery store is not.
Dead animals that are stuffed are exempt; dead animals that are eaten by animals are exempt; dead animals that are eaten by humans are taxed.
Satellite dish service is fully taxed; the first $15 of cable service is exempt.
Daily and weekly newspapers such as The Tennessean and The Wall Street Journal are exempt; monthly magazines such as Business Nashville and Forbes are taxed.
Guns bought at Wal-Mart are taxed; guns bought at a gun show are exempt.
Admission fees to beauty pageants that have existed in the same city for 30 years or more are exempt; admission fees to beauty pageants that have been organized during the last 30 years are taxed.
None of these are huge exemptions from a state budgetary point of view, but they add up. The biggest sales tax exemption in Tennessee is for services of all kinds: health care services, construction services, legal services, accounting services, public relations services, advertising services and real estate commissions. They are all exempt from sales taxes in Tennessee, as they are in most states.
In some cases, there is a good reason for exemption. It may very well be that industrial machinery should be exempt from taxes. (As it turns out, industrial machinery is exempt from taxes in most other states, which means that Tennessee would be at a competitive disadvantage if it taxed industrial machinery.) But many exemptions were written into law for strange reasons, or at a time when the world was a different place. Because the legislature didn’t attach “sunset clauses” to exemptions as they passed, which would have given them a finite life, the entire tax code is a hodgepodge of some new—and some desperately outdated—breaks for various industries. Intellectually honest lawmakers agree the tax code needs to be reviewed—by people intelligent enough to see both sides of an issue, even if only one side is presented to them
More on Fines in Tennessee
Things you can and cannot be fined for in Tennessee:
Tennessee is one of the few states that allow open alcoholic containers for all but the driver. Any passengers, of the car, can have open containers of alcohol without being fined.
A hunter can hunt and shoot within 100 yards of anyone's home without being fined. There can still be trespassing issues, but as for shooting and hunting, and firing a gun beside someone’s bedroom window at 4 in the morning in a Sevier County Subdivision…nothing. Many Tennessee lawmakers on both sides have tried to pass a bill to modernize some of the hunting laws, but have seen a lot of fight back from TWRA and NRA lobbyists.
No local governing body in the state of Tennessee can to pass a law regulating the use of tobacco products in restaurants, bars, malls, office buildings or private colleges, the ordinance would violate state law and be invalid. Why? Because in 1994, when the legislature was passing a series of laws meant to reduce teen smoking, tobacco industry lobbyists quietly slid in an amendment effectively preventing local governments from passing “any law or regulation of tobacco products.” The tobacco industry wanted the local preemption law passed so that it wouldn’t have to worry about local ordinances all over the state. Private establishments can become no smoking areas, but no government ordinances can be made against tobacco and smoking.
Tennessee has a law that says you can’t be fired for smoking. Actually, it never mentions cigarettes, but it says that a person can’t be fired for “the use of an agricultural product not regulated by the Alcoholic Beverage Commission that is not prohibited by law.” That, of course, means tobacco. The “Smoker Employment Protection Act,” as it has become known colloquially, was passed in 1990 as part of a bill prohibiting the firing of “whistleblowers”—people who refuse to take part in or be silent about illegal activities. Twelve years later, it’s difficult to understand the circumstances under which smoking was made a fundamental right of employees. But it’s safe to say that it won’t be repealed anytime soon.
You can be fined, in Tennessee:
for making food appear tastier than it really is, meaning that justice should be brought to the food industry that has tastier look commercials than the actual food is.
for selling imported Catfish and calling it Catfish. You aren’t supposed to call it Catfish if it didn’t come from TN.
Selling fireworks in a county for more than 355,000 people unless you have been doing it for at least 45 years
For coasting down a hill with your car in neutral or the clutch disengaged, because the fuel efficiency gained from doing so is apparently a clear threat to Tennessee
For having a bumper sticker that someone else finds offensive…
Selling ginseng, specifically, without a special permit
Handling a reptile in a manner that could cause harm to another
Rescuing a turtle and keeping it as a pet.
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