Taxes - As enacted, adds to the definition of a "qualified public use facility" as used in the Local Tourism Development Zone Business Tax Act a mixed-use development containing a performance venue with a seating capacity of at least 2,500; authorizes a municipality or public authority that has financed a qualified public use facility within a tourism development zone and that qualifies for an allocation of sales tax revenue from within that zone under the Convention Center and Tourism Development Financing Act of 1998 and under other provisions of sales tax law to use the revenue for purposes authorized in the act or other law. - Amends TCA Title 7 and Title 67.

HB 2496 updates Tennessee's tourism tax rules to include large mixed-use developments with performance venues (2,500+ seats) as eligible projects. It allows cities or public authorities in tourism development zones to use existing sales tax revenue - previously allocated for qualifying facilities - for these new types of projects, provided they meet a $300 million investment threshold. The bill specifically expands the definition of "qualified public use facility" in tourism financing law to cover such venues and their surrounding commercial/residential spaces. This directly affects municipalities managing tourism zones that have already secured sales tax allocations under existing law.