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In an effort to lure an entertainment business to the area, the Franklin City Commission on Monday passed an ordinance that will place a 10 percent tax on the sale of tickets at amusement parks.
Officials are working to bring that type of business to Franklin. While they continue to decline to reveal details, officials have said the business would create about 200 jobs and invest $150 million into the area.
Officials tried to pass a similar ordinance last month, but it failed after public opposition convinced commissioners the ordinance was unclear. Officials wanted to use the tax as an incentive for the entertainment business - business owners could take money generated from taxes on their own sales and pump it back into the business.
The new ordinance only pertains to amusement parks, and the proposed entertainment business “is along those lines,” said Dennis Griffin, executive director of the Franklin-Simpson Industrial Authority.
“It paves the way for some potential clients,” he said. “There would be several that would benefit from this tax or fee.”
In fact, two other businesses are looking to locate in Franklin, but they are not amusement parks, Griffin said.
“I think there has been some thought that we have been working with an individual project,” he said. “I don’t want to mislead anybody in saying they’re all amusement parks, but this gives us an opportunity to work with some different projects.”
Franklin officials initially proposed an ordinance that placed a tax on all ticket sales, but people complained the tax would hurt nonprofit and school-related ticket sales.
Officials revised the ordinance to exclude businesses that operate for a charitable purpose, businesses that are part of a government agency or school and businesses that already pay state taxes on racing tracks.
Still, some residents felt the revised ordinance was too vague, unfair and could negatively impact a few existing businesses.
The new ordinance does not affect existing businesses, only future amusement parks, said Jim Brown, Franklin city manager.
No one protested the new ordinance.
“The purpose of this ordinance is essentially to provide a tax on any new business that fits this category ... this is essentially what we tried to do in the two previous ordinances,” Brown said. “Any amusement park would be subject to this tax.”
City officials still can use the tax money as a financial incentive, he said.
“The city can use the funds however they need to,” he said.
Commissioners unanimously approved the ordinance. Officials now will contact business owners and investors to inform them of the new tax and possible incentives, Brown said.





