While Nashville’s downtown bar owners seek bailout from new tourism board, Haslam voices concerns

​A board designed to oversee the distribution of excess tax revenue in downtown Nashville met for the first time earlier this month, with the state’s former governor voicing concerns about giving money directly to businesses.

​The board was partially tasked with finding a way to provide a government bailout after several bar owners in downntown Nashville on Broadway complained that large property valuation increases were driving up their tax bills.

​Former Tennessee Gov. Bill Haslam, a board member, said during the meeting that instead of giving money directly to companies, he would “encourage” the board to look into spending the money on projects for the “greater good.”

​“I think when we get into this with individual businesses it’s going to be a nightmare,” Haslam said. “You’re going to have companies, one across the street that is eligible, and one that is not.” 

Top Republicans push creation of a new state board to oversee Nashville tourism tax revenues

​Tennessee lawmakers created the nine-member Joint Capital Tourism Board earlier this year to distribute excess tax revenue created by downtown Nashville’s tourism development zone, TDZ.

​As part of the legislation, lawmakers wanted a way to move money from the TDZ to a different tourism zone on the city’s east bank to help fund road improvements, such as a connection between Oracle’s new campus and the East Nashville neighborhood.

​Tennessee Comptroller Jason Mumpower told board members that the excess revenue could be in the “tens of millions of dollars,” with an exact figure likely to be determined by the end of the year.

Officials estimated that there are nearly 2,600 businesses in the TDZ that could be eligible for the money. Haslam is majority owner of the National Hockey League’s Nashville Predators, who play in Bridgestone Arenaon Broadway.

​The new board is part of state Republicans’ continued attempts to assert more authority over the Democratic-run Nashville. 

Republican leaders in the legislature have advocated for property tax relief for Nashville’s downtown bar owners, who have complained about their tax bills after a recent property reassessment quadrupled valuations in some cases.

​Nashville didn’t raise its property tax rate in 2025 but saw property values rise 45% across the city. Instead of lowering the tax rate to offset the higher valuation, the mayor and Metro Council kept rates at a level that resulted in a net increase in tax bills for many in the county.

​The downtown tax issue is further complicated because many bar owners are locked into a “triple-net lease,” which means they don’t own the property but are responsible for the higher tax bills.

​The millions in excess revenue, overseen by the new capital board, explicitly allows for property tax relief grants, payments to cover events such as the 2030 Super Bowl held at the new Tennessee Titans stadium, and public safety grants.