6,250 subscribers www.TML1.org Volume 63, Number 5 March 19, 2012 Online travel agencies prevail against cities BY CAROLE GRAVES statutes that clearly state the TML Communications Director scope and application of the tax laws and, upon identifying any In a legal fight that pitted Ten- potential revenue shortfalls in nessee local governments against their application, to address online travel companies, a U.S. Dis- those perceived shortfalls by trict Court Judge ruled in favor of appropriate legislation," the online booking agencies. Trauger wrote. The class-action suit filed on Online Travel Companies behalf of 56 municipalities and 73 including Expedia, Travelocity, counties claimed that online travel Orbitz, Priceline, and companies (OTCs) collect hotel Hotels.com contract with ho- occupancy taxes from consumers tels to control and sell hotel but only remit to local governments rooms over the telephone and a fraction of the taxes collected. Internet. The travel companies U.S. District Judge Aleta A. pay discounted rates to hotels Trauger granted summary judgment that are not disclosed to con- on the merits for the online travel sumers. The OTCs charge con- companies, ruling that the “tourist sumers a full, marked-up retail rate accommodation tax” should be col- and collect hotel taxes based on the tween the amount the consumer lected on the rates hotels charge and retail rate. They also typically pays in taxes and processing fees, Photo by Victoria South not the ultimate rates paid by con- charge consumers a processing and the amount of occupancy taxes sumers. fee. paid to the hotel. Lt. Gov. Ron Ramsey speaks with Huntingdon Mayor Dale Kelley and In her Feb. 23 opinion, she said The city of Goodlettsville was “We are disappointed in Judge Maryville Assistant City Manager Roger Campbell at the recent it was up to the cities to rework the the lead plaintiff in the certified Trauger's ruling because we think Tennessee Municipal League Legislative Conference. State and local current tax laws if they want to be class-action suit, which claimed the intent of the hotel-motel tax was leaders met in Nashville to network and discuss key legislation able to go after the companies for that OTCs only remit to taxing au- that the amount should be based currently being considered on Capitol Hill. taxes. thorities hotel taxes based on the upon the rate paid by the person "It is ultimately the role of the discounted rate. The travel compa- staying in the room and not the lesser TML’s legislative event state legislature to enact revenue nies then pocket the difference be- See CLASS-ACTION on Page 5 educates, advocates Brentwood opens Tennessee’s for local autonomy first Next Generation call center BY CAROLE GRAVES Public Safety Commissioner BY VICTORIA SOUTH and VICTORIA SOUTH Bill Gibbons discussed Gov. Bill TML Communications Coordinator Haslam’s 40-step action plan de- Acknowledging that many of signed to improve public safety Brentwood made history re- the planning and zoning bills cur- statewide. cently by becoming the first city in rently being considered by the Ten- He said that the main goals of the Tennessee to make a leap into the nessee General Assembly are “con- plan are to significantly reduce drug Next Generation. Around 60 people troversial,” Lt. Gov. Ron Ramsey abuse and drug trafficking; curb vio- attended grand opening festivities reassured city officials attending lent crime; and lower the rate of for the city’s new, fully-equipped TML’s Legislative Conference that repeat offenders. Next Generation (NG) 911 emer- he’s working to find a compromise. To address the state’s meth gency call center located at 5211 “The two major ones aren’t go- problem, he said that they are in the Maryland Way. The center includes ing to pass,” Ramsey said. “But I do process of launching a major public state-of-the-art radio, telephone and believe we at least brought this up for awareness campaign, as well as de- power backup systems, all support- discussion, brought this up to try to veloping a real-time database to ive of NG911 technology. find some common ground. I under- track the purchases of pseudoephe- “This is digital 911,” said Ten- stand that what works for Memphis drine products (commonly used to nessee Emergency Communica- won’t work in Mountain City.” make meth). The plan also includes tions Board (TECB) Chair Randy Lt.Gov. Ramsey explained that establishing a statewide meth lab Porter. “It’s a major stepping stone during his “red tape road trip” last clean-up system. toward a state-of-the-art network Brentwood’s new Emergency Call Center is the first in the state fully fall, business owners said that they As part of the Governor’s plan that will improve public safety. wired for NG911, and will allow dispatchers to communicate directly were frustrated with a lot of bureau- to crack down on prescription drug NG911 will replace the analog net- with surrounding public safety agencies, while controlling city-wide cratic red tape. abuse, legislation is currently mov- work and increase the reliability of traffic cameras along with other high-tech capabilities. “When a sign gets knocked ing through the Legislature revises the 911 system. The statewide de- down because somebody had a car various provisions of present law ployment will provide all Tennessee quated copper-wire technology to tures. Brentwood’s 911 center has wreck and they can’t put that sign in regarding the controlled substance citizens with a more responsive state-of-the-art digital capabilities. the capability of receiving data from and stand it back up, that’s a prob- database. Pharmacies will be re- emergency communications system The digital version of 911 is then multiple new telephone technolo- lem,” Ramsey said. quired to enter information into the that will offer improved function in transmitted over Tennessee’s exist- gies. The NG 911 system will allow Ramsey says he would like to database in a timelier manner – the case of disaster.” ing statewide Internet Protocol (IP) all of the state’s 911 centers to ac- hold some of the legislation over for within 24 hours of dispensing the Similar to converting televisions network. cept calls from any type of phone. a summer / fall study committee and drugs. And stiffer penalties will be from analog to digital, the state’s In the near future, NG 911 sys- Connecting to a wide range of de- involve TML, TACIR, chamber of handed down for those caught “doc- conversion to NG911 requires that tems will routinely receive text mes- vices, the equipment identifies the commerce members, and citizens. tor shopping” or selling prescription 911 trunks be converted from anti- sages, videos and cell phone pic- See NEXT GEN on Page 5 “It’s a hot issue,” he said. “We need drugs on the to be talking about it as a group.” See LEGISLATIVE on Page 12 Anti-Eminent Domain bill passes U.S. Annual Conference to focus House, Senate consideration possible on making TN cities great BY MIKE WALLACE such as the construction of roads, Housing and Urban Development June 9 - 12 in Knoxville Nation’s Cities Weekly hospital facilities, airports or military Appropriations (THUD) bill that pro- bases. Such authority would also be hibits the use of federal funds on any How do we keep America great? Seven years after the U.S. Su- permitted in cases of developing project connected to the exercise of Rick Baker, former mayor of St. preme Court affirmed the right of public transportation systems or in- eminent domain unless it is exercised Petersburg, Florida, will provide a cities to use eminent domain to se- frastructure, such as the proposed for a “public use.” compelling—and challenging—an- cure land for proposed private com- Keystone pipeline, or to remove Under the normal process, the swer: by making American cities mercial development, and after more threats to public health and safety. House-passed eminent domain bill great! And great cities are built first than 40 states that have reassessed During House debate, the bill would be referred to the Senate Ju- of all through strong leadership. and limited their own state eminent was championed by cosponsors diciary Committee, which has juris- Baker will serve as the keynote domain laws in response, a biparti- Reps. James Sensenbrenner (R- diction over the issue, and which is speaker at TML’s Annual Confer- san group of federal lawmakers is Wisc.) and Maxine Waters (D-Ca- unlikely to consider eminent domain. ence, slated for June 9 - 12 in Knox- still seeking to legislatively overturn lif.). Rep. John Conyers (D-Mich.), However, in an effort to gain support ville. the decision in Kelo v. City of New ranking minority member of the and advance a difficult transporta- During his two terms in office, London. House Judiciary Committee, was the tion reauthorization bill, Senate lead- Rick Baker worked toward a clear, On Feb. 28, the House of Repre- sole speaker in opposition. ers have decided to permit a number uncompromising goal: to make St. sentatives approved by voice-vote Although Conyers called pro- of non-germane amendments on the Petersburg the best city in America. H.R. 1433, the Private Property tections against eminent domain transportation bill. He led a downtown renaissance, re- Rights Protection Act of 2011. The abuse a laudable goal, he referred to The first of those amendments built the most economically de- bill would prohibit federal, state and the bill as a “one-size-fits-all, Wash- is a controversial contraception pressed area of the city, attracted local governments that receive fed- ington-knows-best solution,” and measure.