Chattanooga Finalizes Finley Stadium Tax Agreement
The city and Stadium Corporation will retain sales tax revenue to fund necessary capital improvements at the venue.
Updated on Oct. 30, 2026 in Philanthropy
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Chattanooga is entering a memorandum of understanding with the Stadium Corporation to capture state and local sales tax proceeds generated at Finley Stadium. The funds will support ongoing maintenance and capital renovations through 2032.
Why it matters
The agreement leverages new state legislation to secure a dedicated funding stream for facility upkeep. This arrangement ensures that tax revenue generated on-site remains available to address deferred maintenance at the jointly owned stadium.
The agreement allows for the annual reallocation of $342,200 in state sales tax and $89,900 in local sales tax to the stadium. Finley Stadium annually attracts over 482,000 visitors and generates $30.3 million in economic impact.
The players
Finley Stadium
This multi-purpose venue is jointly owned by Chattanooga and Hamilton County.
Stadium Corporation
This non-profit entity manages the daily operations of the facility.
Tennessee Commissioner of Revenue
This official oversees the state tax collection process and receives the filed agreements.
The details
Under Public Chapter No. 927, Finley Stadium can now capture tax proceeds generated on its premises, excluding portions designated for Hamilton County Schools. The City Finance Department will determine the annual split, provided the executed agreement is filed with the Tennessee Commissioner of Revenue.
Timeline
1999: Chattanooga's Tourism Development Zone was originally created.
2025: The Tennessee Legislature passed Public Chapter No. 927.
2032: The period for stadium access to reallocated sales tax funds expires.
Market Landscape
This agreement follows the precedent set by Public Chapter No. 927, which creates new avenues for public venues to capture tax revenue for infrastructure. It positions Finley Stadium to address long-term deferred maintenance needs that remain a common challenge for aging municipal sports facilities.
The reallocation of tax revenue is designed to improve the facility without requiring new direct taxes on local residents. Visitors will continue to support the stadium through normal on-site transactions, which now contribute directly to future capital improvements.
The takeaway
The city is effectively reinvesting existing tax revenue back into the stadium to ensure its longevity. This model highlights how legislative changes can provide necessary capital for public spaces without increasing the local tax burden.
Further reading
Find more details on community funding efforts in the Chattanooga Philanthropy section.
Source note: This article includes information reported by Chattanoogan.
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