Shoppers Could Face Special Mall Tax

NASHVILLE, Tenn. -- At a time when sales tax collections have fallen short of expectations, there's talk of tacking on additional sales tax to benefit certain shopping malls.

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The idea is to help offset the cost of expensive improvements, such as parking decks, by taxing shoppers.

Currently the plan is merely a concept and would apply to a Chattanooga mall. But if this concept becomes a reality, Cool Springs Galleria might be able to add the tax.

CBL Properties, which owns Cool Springs Galleria, Hickory Hollow and Rivergate Mall is expanding its Chattanooga mall.

To help pay for the cost of a new parking garage and other infrastructure, it wants to charge a use fee.

"The idea was that they would put a user fee or privilege tax on the people who use that facility in that area, and then that would fund the infrastructure improvements," said Sen. Bo Watson, a Republican from Hixson.

This would be an additional half a percent to one percent tax on top of the existing sales tax.

But the proposed legislation would allow other facilities that meet size and sales tax requirements to do the same. It could apply to malls like the Cool Springs Galleria.

"It could but that would depend on what local government wants to do," said Watson.

Watson said right now this is just a concept. No bills have been filed, and it's up to local governments to decide whether or not they are interested in doing this.

But some Cool Springs shoppers said this is a concept they don't want any part of.

"The tax would cause me to shop somewhere else. There's plenty of other stores around here that offer better prices," said one shopper.

Watson said in order for the tax to happen, local governments would have to come to them to file the legislation. Currently, the Chattanooga mall is the only place that this has occurred.

A similar use fee was approved for Graceland in Memphis last year.