Amusement tax generates $120M for Pigeon Forge on The Murfreesboro Post

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Amusement tax generates $120M for Pigeon Forge

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By: By LISA MARCHESONI Senior Writer

More than $120.9 million in amusement taxes were collected from Pigeon Forge businesses last year, a city clerk said.

Pigeon Forge tax clerk Mable Ellis said the city levies a 2 percent tax on amusement-related businesses such as Dollywood and Splash Country.

Kay Powell, assistant tourism director for Pigeon Forge, said the amusement taxes are significant.
"That's a great deal of money coming into the city," Powell said.

About 2.4 million people visit Dollywood and another 500,000 visit Splash Country annually.
In comparison, a proposed Bible park for Rutherford County is expected to draw about 800,000 to 1 million visitors annually.

Rutherford County Mayor Ernest Burgess said recently if the Bible park locates in the county, the county will receive all of the local option sales tax from the attraction.

Sponsors presented a concept of the park April 13 to state and local officials and chamber board members.

State Sen. Jim Tracy, R-Shelbyville, who represents part of Rutherford County, said developers asked him to present a bill allowing the county to rezone undeveloped land to entertainment to allow the park. State Rep. Curt Cobb, D-Shelbyville, who represents Eagleville and Rockvale, sponsored the bill in the House.

The bill passed the Senate State and Local Government Committee last Tuesday and is waiting for House action.

Cobb said House Bill 609 will go before the House State and Local Government Committee this week.
"It doesn't mandate anything," Cobb said. "It just pretty much gives the (Rutherford) County Commission the tools to do a type of tax incremental financing."

County commissioners will establish where the zoning will apply.

"We're just giving them the economic development tools," Cobb said, adding he believes the county commissioners should decide about the park.

"They have a better pulse of what's going on," Cobb said. "They ought to have that option whether they do it or not."

Pigeon Forge, located about 30 miles north of Knoxville, relies on the tourism industry.
Powell said Dollywood opened in 1986.

"Gross business jumped 47 percent" the first year, Powell said. "Since then, it's been a remarkable ride. Having the name Dolly Parton on it (Dollywood) has made it very successful."

Dollywood's public relations manager Pete Owens said Dollywood and Splash Country in Sevier County pay more sales taxes than any other tourist attraction in the state of Tennessee.

Ellis said Pigeon Forge receives about 1.5 cents of the sales taxes collected from the amusement parks but she couldn't release the amount of the parks' sales taxes because the numbers are private.

Because of the success of Dollywood and Splash Country, tourism business expanded drastically, Powell said. Of the 11 million visitors annually, 7 million visitors spend the night. Miniature golf courses, theaters and six outlet malls expanded to meet the demand.

All amusements pay the 2 percent tax and all Pigeon Forge businesses pay the city 1 percent of their gross receipts.

"The success of Dollywood brought more people to the area," Powell said. "Success breeds success."

Lisa Marchesoni may be reached at 869-0814 or at lmarchesoni@murfreesboropost.com.

Tagged under Bible Park, Dollywood, religious park

Member Opinions:

By: cmac on 5/13/07
Are we supposed to assume from this that the "bible theme park" will be another dollywood or splash country? Anyone been to Pigeon Forge and Gatlinburg lately? Did you happen to notice traffic and smog? Now, try to imagine adding almost 3 million more people to Murfreesboro's already uncontrolled congestion.

By: etech30 on 5/14/07
You read my mind cmac!

By: peri_winkle on 5/14/07
"Rutherford County Mayor Ernest Burgess said recently if the Bible park locates in the county, the county will receive all of the local option sales tax from the attraction."

Of course it will and thank goodness. The whole concept of a tourist development zone [that's what the bill authorizes] is that the county [or city] gets the increased revenue to pay off the debt it issues to raise money to buy or develop the land. Of course, the county would get the revenue. It would get it--and need it--to pay off the debt.

I repeat: this is not a net increase to the county coffers. At best, it will be a wash. Lots of these things lose money, and it takes other taxpayers' dollars to pay the debt. There is no guarantee that the revenue from the project will be enough to repay the county's new debt.

And there's this: if this Boondoggle were such a great idea, wouldn't other cities/counties be fighting us to get it? They are not. That's all you need to know to figure out whether it's a good thing.

By: GrumpaEd on 5/15/07
The mayor wants the amusement tax. The mayor wants to increase the wheel tax.

This mayor is costing us as an increase in taxes and debts.