ÿWPC" ¢\Fw%+Ã1¬¬0ƒ±Ûr¹K Ã*¬Rb¹àWçóxNÀà€zSÁAɽkÎ5•É÷§f „é5ãpn YkÈ–Û3̽î/þÔÀô[p'6sÐŨ¥UŸá«´mÀeMDk¾^ã}U P?S/ 23/d²Ai4ïõCïªZÊÂÀ~N)ü§“s£æAÒÓÙÄss $³õôˆaz%/a^ÞNÕу̛؆2æŽôÌÚBDblŠ=b¼¢#pEÁ]ˆ«U'ê‚!Q®Lm¢ÓïÒY³oU/½îÔó'§x|”Èà1 ô£ƒj[Ö`_º¶H‚¢Ù>Îa~¨ã䈑pK´V“¸r†6F]ÕøK7/Ü`Hå„°Ô$©OÚÜð'JêÓÖ–ÎU<IË^-b–p¼ê³D¨b£2¸3ËÒ”§š¥¥Ïv¹kW.h>QÍœô9u4^=ùEz£4o‡)"ÉÅù‡ªñ!Šÿ§ P«N‚‡=ŽÚ®ÍN$¯5Âg:âlóÏ'àp@ùm¡{´OÜÕ'¢[¾Ii+ÄŸxÅÍéU ¦?}…׬óTh-–¥03cwÖvfª›3à(^.º¡Pe†9T>F¾ö(²h­ WMÇ{b#É\ %% UN+ 0ˆy U!N 0DO w“ z Ò„ ÆV^ F(wnÆrÆ8ÆþÆÄ4ŠNž ¯E± m³³³³³³³JÊÊÊÊÊÊÊÊÊÊÊÊÊÊÊÊb 0ë B 0¤$ D3È D-û 0K(( ASsÆÆ 0¤Œ 0D0! A«t!˜\\IB01S02\CLERKJACÈÈ,,,,ÈÈ0»(ÖÃ9 Z‹6Times New Roman Regular(`£ª$¡¡Ñ€.ÑÑ8€½­»»d»»d8ÑÑ ý ÑÓ  Ó(í€"  Z6Times New Roman Regular(#Ã$òòÚ  Ú0Ú  Úóó mÝ ƒRl$ÝÓ  Óà  àòòÚ  Ú2Ú  ÚóóÔ€ô³Üò»»ÔÝ  ÝÔ_Ôà ` àThe€General€Assembly€granted€Millington€the€authority€to€impose€an€occupancy€tax€when€it€enactedÐ ° ÐChapter€No.€186,€Private€Acts€of€1998.€€The€Millington€Board€of€Mayor€and€Aldermen€then€duly€ratified€the€act. ˜C:\PROGRA~1\COREL\WORDPE~1\TEMPLATE\CUSTOM~1\REVISE~1.WPTC:\Program Files\Corel\WordPerfect Office 2000\Template\Custom WP Templates\revised standard opinion.wpt ¼Ý ƒRl$ÝÓ  Óà  àòòÚ  Ú3Ú  ÚóóÔ€ô³Üò»»ÔÝ  ÝÔ_Ôà ` àThe€occupancy€tax€at€issue€in€òòAshworthóó€was€codified€as€Private€Chapter€127€of€the€Private€Acts€ofÐ ° Ð1986€and€contained€the€following€relevant€provisions:Ð qÁ ÐÌÓ XÓÓ XÓSECTION€2.€€The€legislative€body€of€Greene€County€is€authorized€to€levy€a€privilege€tax€upon€theÐ óC Ðprivilege€of€occupancy€in€any€hotel€of€each€transient€.€.€.€Such€tax€is€a€privilege€tax€upon€the€transientÐ ´ Ðoccupying€such€room€and€is€to€be€collected€as€provided€by€this€Act.Ð uÅ ÐÓ X_ÓÓ XQÓÌòòIdóó.€at€*1.€€The€private€acts€at€issue€in€this€case€contain€the€same€language€indicating€that€the€tax€is€to€be€levied€upon€theÐ ÷ G Ðoccupant€of€the€hotel€or€motel,€and€not€upon€the€establishment€itself.,vx/Ï  <Ý ƒRl$ÝÓ  Óà  àòòÚ  Ú1Ú  ÚóóÔ€ô³Üò»»ÔÝ  ÝÔ_Ôà ` àTenn.€Code€Ann.€ðð€67„4„1425(a)€states€as€follows:Ð ° ÐAfter€May€12,€1988,€any€private€act€which€authorizes€a€city€or€county€to€levy€a€tax€on€the€privilege€of€occupancy€of€aÐ qÁ Ðhotel€shall€limit€the€application€of€such€tax€as€follows:Ð 2‚ Ðà  à(1)€€A€city€shall€only€levy€such€tax€on€occupancy€of€hotels€located€within€its€municipal€boundaries;Ð óC Ðà  à(2)€€A€city€shall€not€be€authorized€to€levy€such€tax€on€occupancy€of€hotels€if€the€county€in€which€such€city€isÐ ´ Ðlocated€has€levied€such€tax€prior€to€the€adoption€of€the€tax€by€the€city;€andÐ uÅ Ðà  à(3)€€A€county€shall€only€levy€such€tax€on€occupancy€of€hotels€located€within€its€boundaries€but€outside€theÐ 6 † Ðboundaries€of€any€municipality€which€has€levied€a€tax€on€such€occupancy€prior€to€the€adoption€of€such€tax€by€the€county.Ð ÷ G ÐLevel 1Level 2Level 3Level 4Level 5‚Level 1Level 2Level 3Level 4Level 5„Level 1Level 2Level 3Level 4Level 5…Level 1Level 2Level 3Level 4Level 5lk.ê:i¢×+003|x ÿU‹ÿÀÀÀ AlissandratosHighersMcKenney JefFeibelmanColliervilleEcono LTDWitakerMcAteeCardwell J.W.MonsarratFluhartyHerrinT.C.A. ExhNorthlandCowdenSovranprotectableAssn justiciabilityMillingtonBobbittAshworth COABrodbines]uch I]t T]heTullahomaNolichuckeyHuddleston i]fEstrin i]n KiddMcWherterVertrees S.W.Inns,LLC- ù-(|G2l$¤¤Ý ƒ£ª!ÝÑ€.ÑÑ8€»»dd8ÑÑ ý ÑÓ  ÓÝ  Ýà  àòòÚ  Ú0Ú  ÚóóÔ€ô³Üò»»Ô d(|3 $££Ý ƒ£ª!ÝÑ€.ÑÑ8€»»dd8ÑÑ ý ÑÓ  ÓÝ  ÝVVVV'ÿÿdxd)!ÈÈÈÈdxdx( ±þ$’’ò òFigure€Ú  Ú1Ú  Úó ó^_X`YEþÿ<<CÿÿƒLevel 1Level 2Level 3Level 4Level 5(|3 $¢¢Ý ƒ£ª!ÝÑ€.ÑÑ8€»»dd8ÑÑ ý ÑÓ  ÓÝ  Ý($$””ò òÚ  Ú1Ú  Úó óX[Z&OLE 2.0 Box <=8ÿÿÿÿÿÿÿÿÿÿCÿÿ HKKKKÝ ƒ£ª!ÝÑ€.ÑÑ8€»»ddÈ8ÑÑ ý ÑÓ  ÓÝ  ÝÔ_ÔÑ  ÑÔ€¼»»»ÔÑ8€ÃçXXdé»»d8ÑÑ  Ñà@ò ò ìàÔ‡îaÔIN€THE€COURT€OF€APPEALS€OF€TENNESSEEˆÐ ° Ðà@òò%ìàAT€JACKSONÔ#†¼»îîa #ԈРÓ# ÐÓ  ÓASSIGNED€ON€BRIEFS€MARCH€31,€2003Ð öF ÐÔ‡XÃçX»¼ÔÌò òÔ#†¼»XXÃçü#ÔADMIRALTY€SUITES€AND€INNS,€LLC,€et€alòòóó€v.€SHELBY€COUNTY,Ð ï? ÐTENNESSEE,€òòet€alóó.Ô‡XÃçX»¼Ôó óÐ  P ÐÌà@@½½ìàò òDirect€Appeal€from€the€Chancery€Court€for€Shelby€CountyÐ ú J Ðà@@øøìàNo.€99„0036„3€€€€€€D.€J.€Alissandratos,€ChancellorÐ ä 4 ÐÌÌà@@ìì*ìàßA€V) °°` d€÷E<¡` AßÐ ¢ò  ÐÌà@@TTìàNo.€W2002„02155„Ô_ÔCOAÔ_Ô„R3„CV€„€Filed€November€24,€Ô_Ô2003Ô_ÔÐ ›ë  ÐÌßA€V) °°` dE<n` AßÐ o¿  Ðó óÌÓ  ÓÔ‡X'^XXXÃçÔThis€case€involves€the€constitutionality€of€Tenn.€Code€Ann.€ðð€67„4„1425,€which€governs€occupancyÐ g· Ðtaxes€on€hotels€and€motels.€€After€conducting€a€hearing€on€the€matter,€the€lower€court€found€theÐ P  Ðstatute€constitutional.€€For€the€following€reasons,€we€affirm€in€part€and€reverse€in€part€the€findingÐ 9‰ Ðof€the€trial€court.€Ð "r ÐÔ#†XÃçXXX'^ #ÔÔ#†¼»XXÃç«#ÔÔ‡XÃçX»¼ÔÌÓýÓÌò òTenn.€R.€App.€P.€3;€Appeal€as€of€Right;€Judgment€of€the€Chancery€Court€Affirmed€in€Part,Ð Ý- ÐReversed€in€Part€and€Remandedó óÐ Ç ÐÌòòÓ  ÓÔ#†¼»àXÃçþ#ÔÔ‡XÃçX.¼ÔAlan€E.€Highers,€J.óó,€delivered€the€opinion€of€the€court,€in€which€òòDavid€R.€Farmer,€J.,óó€and€òòHollyÐ šê ÐM.€Kirby,€J.óó,€joined.Ð ƒÓ ÐÌJ.€Houston€Gordon,€Lyle€Reid,€Covington,€TN,€for€AppellantsÐ U¥ ÐÌEdward€J.€McKenney,€Jr.,€Memphis,€TN,€for€Appellees€City€of€Bartlett€and€City€of€MillingtonÐ ' w ÐÌJef€Feibelman,€Susan€M.€Clark,€Memphis,€TN,€for€Appellees€Town€of€Collierville€and€City€ofÐ ù!I! ÐGermantownÐ â"2" ÐÌPaul€G.€Summers,€Attorney€General€&€Reporter,€Charles€L.€Lewis,€Deputy€Attorney€GeneralÔ#†¼»XXÃç#ÔÔ‡XÃçX»¼Ô,Ð ´$ $ ÐNashvilleÔ#†¼»XXÃç  #ÔÔ‡XÃçX»¼Ô,€for€Appellee€Paul€G.€Summers€in€his€capacity€as€Attorney€General€for€the€State€ofÐ %í % ÐTennessee€Ð †&Ö!& ÐÌÌÓØÓÌò òÌÌÌÌÐ Ò-").ý ÐÔ_ÔOPINIONó óÔ#†¼»XXÃç #ÔÔ‡XÃçX»¼ÔÐ ° ÐÌòòóóÔ#†¼»XXÃç #ÔÔ‡XÃçX»¼ÔÓ  Óò òÔ‡X'^XXXÃçÔà@ûûìàFacts€and€Procedural€Historyó óˆÐ ƒÓ ÐÌà  àThis€case€involves€the€constitutionality€of€subsections€ðð)€and€(d)€of€Tenn.€Code€Ann.€ðð€67„4„Ð V¦ Ð1425€(2003),€which€deal€with€occupancy€taxes€on€hotels€and€motels.€€The€Plaintiffs/AppellantsÐ ?  Ð(ð ðPlaintiffsðð)€in€this€action€include€certain€hotels€and€motels€affected€by€the€statute,€as€well€as€guestsÐ ( x Ðof€the€establishments€who€paid€the€taxes€created€by€the€statute.€€The€Defendants/AppelleesÐ  a Ð(ð ðDefendantsðð)€include€the€towns€of€Germantown,€Collierville,€Bartlett,€and€Millington,€as€well€asÐ ú J ÐShelby€County.€€These€parties€entered€into€a€written€stipulation€of€all€the€material€facts€giving€riseÐ ã 3  Ðto€this€case,€which€states€in€relevant€part:Ð Ì   ÐÌÓ XÓÓ XÓThe€parties€.€.€.€hereby€submit,€for€the€purpose€of€trial,€the€following€stipulated€facts:Ð žî  Ð1.€€€€Plaintiffs€Admiralty€Suites€and€Inns,€LLC;€Admiralty€Plantation€Oaks,€LLC;Ð ‡×  ÐNorman€Patel€d/b/a€Super€8€Motel;€Millington€Inn;€Smith€Investments,€Inc.€d/b/aÐ pÀ  ÐEcono€Lodge€and€Magnolia€Suites€and€Inn;€Country€Club€Apartments,€LTD€d/b/aÐ Y©  ÐHampton€Inn,€Collierville;€and€the€Millington€Area€Hotel/Motel€Association€areÐ B’ Ðbusinesses€and€an€association€of€businesses,€respectively,€who€operate€and€areÐ +{ Ðinvolved€in€operating€hotels€and€motels€in€municipalities€within€Shelby€County,Ð d ÐTennessee,€some€of€which€are€operating€within€the€cities€of€Bartlett,€Collierville,Ð ýM ÐMillington,€or€Germantown.Ð æ6 Ð2.€€€€Country€Club€Apartments,€LTD,€d/b/a€Hampton€Inn,€Collierville,€is€an€operatorÐ Ï Ðof€a€hotel/motel€in€Collierville,€Tennessee,€and€has€been€required€to€collect€and€remitÐ ¸ Ðhotel€and€motel€taxes€imposed€by€the€municipality,€Collierville,€Tennessee,€and€byÐ ¡ñ ÐShelby€County,€Tennessee,€and€has€paid€and€transmitted€such€municipal€hotel€orÐ ŠÚ Ðmotel€tax€as€being€ð ðpaid€under€protest.ððÐ sà Ð3.€€€€Plaintiffs€Ben€Witaker,€Karin€McAtee,€Lee€Cardwell,€J.W.€Underwood,€W.F.Ð \¬ ÐMonsarrat,€Mark€King,€Anne€Fluharty€and€James€Herrin€are€individuals€who€areÐ E• Ðand/or€were€patrons€at€motels€and€hotels€located€within€Shelby€County,€Tennessee,Ð .~ Ðand€who€paid€a€hotel€or€motel€tax€imposed€by€either€the€city€of€Bartlett,€the€Town€ofÐ g ÐCollierville,€or€the€City€of€Germantown€in€addition€to€that€imposed€by€ShelbyÐ  P ÐCounty.Ð é 9 Ð4.€€€€Plaintiff€James€B.€Herrin€and€Anne€Fluharty€have€each€paid€ð ðunder€protestðð€aÐ Ò!"  Ðhotel/motel€tax€imposed€by€either€the€City€of€Bartlett,€the€Town€of€Collierville,€orÐ »" ! Ðthe€City€of€Germantown.Ð ¤#ô" Ð5.€€€€The€City€of€Bartlett,€Tennessee;€the€Town€of€Collierville,€Tennessee;€the€CityÐ $Ý# Ðof€Germantown,€Tennessee;€and€the€City€of€Millington,€Tennessee,€are€eachÐ v%Æ $ Ðmunicipalities€within€Shelby€County€that€are€organized€under€private€act€charters.€Ð _&¯!% ÐNone€of€these€municipalities€are€home„rule€municipalities€.€.€.Ð H'˜"& Ð7.€€€€The€Attorney€General€has€been€properly€made€a€party€to€this€action.Ð 1(#' Ð8.€€€€In€1988,€the€Tennessee€General€Assembly€enacted€T.C.A.€ðð€67„4„1425,€whichÐ )j$( Ðgoverns€simultaneous€county€and€city€taxation€of€hotel€occupancy€by€private€act.€Ð *S%) ÐSection€67„4„1425(a)€prohibits€adoption€of€a€private€act€that€results€in€theÐ ì*<&* Ðsimultaneous€taxation€of€hotel€occupancy€by€a€county€and€the€cities€located€withinÐ Õ+%'+ Ðthat€county.€€Section€67„4„1425ðð)€exempts€Shelby€County€from€the€provisions€of€ððÐ ° Ð67„4„1425(a).Ð ™é Ð9.€€€€At€the€time€of€the€enactment€of€ðð€67„4„1425ðð),€Shelby€County€had€in€existenceÐ ‚Ò Ða€county„wide€5%€hotel€tax,€which€remains€in€effect€.€.€.€Ð k» Ð10.€€€The€General€Assembly€passed€private€acts€authorizing€Germantown€in€1995,Ð T¤ ÐCollierville€in€1996,€Bartlett€in€1997,€and€Millington€in€1998€to€amend€their€chartersÐ =  Ðto€permit€those€municipalities€to€levy€a€tax€on€hotel/motel€occupancy€as€permittedÐ & v Ðby€Tenn.€Code€Ann.€ðð€67„4„1425ðð).€€(Chapter€120,€Private€Acts€of€1995Ð  _ Ð(Germantown);€Chapter€187,€Private€Acts€of€1996€(Collierville);€Chapter€97,€PrivateÐ ø H ÐActs€of€1997€(Bartlett);€and€Chapter€186,€Private€Acts€of€1998€(Millington);€attachedÐ á 1  Ðhereto€as€Collective€Exh.€2).€€Each€of€these€municipalities€adopted€the€private€actÐ Ê   Ðamending€its€charter€and,€with€the€exception€of€Millington,€passed€an€ordinance€orÐ ³  Ðresolution€authorizing€the€collection€of€5%€tax€on€occupants€of€hotels€or€motelsÐ œì  Ðwithin€its€municipal€borders.€€(City€of€Germantown€Code€of€Ordinances,€Taxation,Ð …Õ  ÐArt.€V€ðð€18„96,€òòet€seqóó.,€Town€of€Collierville€Code€of€Ordinances€ðð€10„101,€òòet€seqóó.,Ð n¾  Ðand€City€of€Bartlett€Resolution€8„97,€attached€hereto€as€Collective€Exh.€3).Ð W§  Ð11.€€€The€5%€hotel/motel€tax€charged€by€the€cities€of€Bartlett,€Germantown,€andÐ @ ÐCollierville€is€in€addition€to€the€5%€tax€levied€by€òòòòóóóóShelby€County€.€.€.€Ð )y Ð17.€€€The€General€Assembly€has€amended€ðð€67„4„1425€on€two€occasions€to€createÐ b Ðadditional€exemptions€from€the€prohibition€on€simultaneous€taxation€contained€in€ððÐ ûK Ð1425(a).€€In€1996,€the€legislature€provided€an€exception€for€Williamson€County,Ð ä4 Ðcodified€in€a€new€subsection€(d),€and€in€1999,€the€General€Assembly€amendedÐ Í Ðsubsection€(d)€to€add€an€exception€for€Rutherford€County.Ð ¶ ÐÓ X.ÓÓ X<ÓÌThe€various€Plaintiffs€filed€the€instant€action€in€the€Chancery€Court€of€Shelby€County€on€JanuaryÐ ˆØ Ð15,€1999.€€They€sought€to€have€subsections€ðð)€and€(d)€of€Tenn.€Code€Ann.€ðð€67„4„1425€declaredÐ qÁ Ðunconstitutional,€as€well€as€the€private€acts€enacted€pursuant€to€those€subsections.€Ð Zª Ð.€€Ð C“ Ðà  àTenn.€Code€Ann.€ðð€67„4„1425(a)€sets€forth€a€general€proscription€against€double€taxation€onÐ ,| Ðhotels€and€motels.€€Specifically,€it€prohibits€a€county€and€a€municipality€therein€from€both€levyingÐ e Ðoccupancy€taxes€upon€hotels€or€motels€within€their€borders.€€Instead,€only€the€entity€that€first€leviesÐ þN Ðan€occupancy€tax€may€maintain€that€tax.׃ ×Ý ƒ#ÃÝòòÚ  Ú1Ú  ÚóóÝ  Ý×  ×€€Subsections€ðð)€and€(d)€of€Tenn.€Code€Ann.€ðð€67„4„1425Ð ç 7 Ðthen€create€exceptions€to€this€general€proscription,€allowing€double€taxation€of€hotels€and€motels€inÐ Ð!   ÐShelby,€Williamson,€and€Rutherford€Counties.€€Tenn.€Code€Ann.€ðð€67„4„1425€(c)ð"ð(d).€€TheseÐ ¹" ! Ðexceptions€were€achieved€through€the€use€of€population€bracketing.€€òòIdóó.€€The€Plaintiffs€sought€aÐ ¢#ò" Ðdeclaration€from€the€lower€court€that€these€two€subsections€violated€the€equal€protection€provisionsÐ ° Ðof€the€Tennessee€Constitution.€€They€argued€that€no€rational€basis€exists€to€support€the€exclusion€ofÐ ™é ÐShelby,€Williamson,€and€Rutherford€Counties€from€the€general€prohibition€on€double€occupancyÐ ‚Ò Ðtaxation.€€The€Plaintiffs€further€sought€to€have€the€lower€court€remove€the€offending€subsections€byÐ k» Ðway€of€elision.€€The€Defendants€maintained€that€the€challenged€subsections€passed€constitutionalÐ T¤ Ðmuster.€€They€also€argued€that€the€court€lacked€subject€matter€jurisdiction€over€some€claims,€becauseÐ =  Ðmany€of€the€plaintiffs€failed€to€comply€with€the€requirements€of€Tenn.€Code€Ann.€ðð€67„1„911€(2003),Ð & v Ðwhich€sets€forth€procedural€requirements€for€aggrieved€taxpayers€in€pursuing€their€claims.€€TheÐ  _ Ðlower€court€conducted€a€hearing€on€stipulated€facts,€affidavits,€briefs,€and€arguments€of€counsel.€Ð ø H ÐIn€its€final€order,€the€court€found€that€subsections€ðð)€and€(d)€of€Tenn.€Code€Ann.€ðð€67„4„1425€didÐ á 1  Ðnot€suffer€from€any€constitutional€infirmity.€€The€Plaintiffs€timely€filed€the€instant€appeal,Ð Ê   Ðchallenging€the€findings€of€the€lower€court.Ð ³  ÐÌà@ìì'ìàò òIssuesó óˆÐ …Õ  ÐÌà  àThe€Plaintiffs€raise€the€following€issues€for€our€consideration:€€Ð X¨  ÐÌà0  à€€à0` (#(#àà  àI.€€à0` ` (#` (#àWhether€the€lower€court€used€the€correct€standard€of€review€in€determining€theÐ *z Ðconstitutionality€of€subsections€ðð)€and€(d)€of€Tenn.€Code€Ann.€ðð€67„4„1425€and€theÐ c Ðprivate€acts€enacted€thereunder.ÐüL` (#` (# ÐÌà0  àII.€€à0` (#(#àWhether€the€lower€court€erred€in€finding€that€subsections€ðð)€and€(d)€of€Tenn€CodeÐ Î ÐAnn.€ðð€67„4„1425,€and€the€private€acts€enacted€thereunder,€do€not€violate€the€equalÐ · Ðprotection€provisions€of€Article€1,€ðð€8€and€Article€11,€ðð€8€of€the€TennesseeÐ  ð ÐConstitution.ЉÙ` (#` (# ÐÌà  àThe€Defendants€raise€an€additional€issue€for€our€review:Ð [« ÐÌà0  àIII.€€à0` (#(#àWhether€the€lower€court€erred€in€failing€to€dismiss,€for€lack€of€subject€matterÐ -} Ðjurisdiction,€certain€claims€in€this€case.Ðf` (#` (# ÐÌà  àà ` àA.à0 ¸ àWhether€the€lower€court€erred€in€failing€to€dismiss€all€claims€except€those€forÐ è 8 Ðrefunds€of€hotel„motel€taxes€that€were€paid€under€protest€in€accordance€withÐ Ñ!!  ÐTenn.€Code€Ann.€ðð€67„1„911.€Ðº" !¸ (#¸ (# ÐÌà  àà ` àB.à0 ¸ àWhether€the€lower€court€erred€in€failing€to€dismiss€all€claims€against€the€CityÐ Œ$Ü# Ðof€Millington€for€lack€of€ripeness.€€Ðu%Å $¸ (#¸ (# ÐÌà@ìì*ìàˆÌÌà@  !ìàò òStandard€of€Reviewó óˆÐ )i$( Ðà  àThe€issues€on€appeal€involve€only€questions€of€law.€€As€such,€our€review€is€òòde€novoóó€on€theÐ *S%) Ðrecord€before€the€Court,€with€no€presumption€of€correctness€attaching€to€the€findings€of€the€lowerÐ ì*<&* Ðcourt.€€òòóó€òòNorthland€Ins.€Co.€v.€State€of€Tennesseeóó,€33€S.W.3d€727,€729€(Tenn.€2000);òò€Cowden€v.Ð Õ+%'+ ÐSovran€Bank/€Central€Southóó,€816€S.W.2d€741,€744€(Tenn.€1991)(citing€òòHill€v.€City€of€Chattanoogaóó,Ð ° Ð533€S.W.2d€311,€312€(Tenn.€Ct.€App.€1975)).òòóóò òÐ ™é ÐÌà@ôô"ìàLaw€and€Analysisó óˆÐ l¼ ÐÌà  àThe€Plaintiffs€and€Defendants€raise€three€issues€for€our€consideration€in€this€appeal.€€AllÐ ?  Ðissues€raised€by€the€Plaintiffs€focus€on€the€constitutionality€of€Tenn.€Code€Ann.€ðð€67„4„1425,€whileÐ ( x Ðthe€Defendantsðð€only€issue€on€appeal€concerns€the€lower€courtððs€jurisdiction€over€some€of€the€claimsÐ  a Ðbrought€by€the€Plaintiffs.€€We€will€first€address€the€question€of€subject€matter€jurisdiction€raised€byÐ ú J Ðthe€Defendants.Ð ã 3  ÐÌà@KKìàò òSubject€Matter€JurisdictionˆÐ µ  ÐÌó óà  àSubject€matter€jurisdiction€involves€a€courtððs€power€to€adjudicate€a€particular€controversyÐ ‰Ù  Ðbrought€before€it.€€òòNorthland€Ins.€Co.óó,€33€S.W.3d€at€729.€€ð ðCourts€derive€their€subject€matterÐ r  Ðjurisdiction€from€the€Constitution€of€Tennessee€or€from€legislative€act€òòóóand€cannot€exerciseÐ [«  Ðjurisdictional€powers€that€have€not€been€conferred€directly€on€them€expressly€or€by€necessaryÐ D” Ðimplication.ðð€€òòFirst€Am.€Trust€Co.€v.€Franklin„Murray€Dev.€Co.,€L.P.óó,€59€S.W.3d€135,€140€(Tenn.Ð -} ÐCt.€App.€2001)€(internal€citations€omitted).€€Judgments€entered€by€courts€lacking€subject€matterÐ f Ðjurisdiction€are€void.€€òòIdóó.€at€141.€à h àÐ ÿO ÐÌà  àIn€the€first€jurisdictional€issue,€the€Defendants€maintain€that€courts€derive€their€subject€matterÐ Ñ! Ðjurisdiction€to€hear€tax€challenges€from€Tenn.€Code€Ann.€ðð€67„1„911.€€This€statute€provides,€inÐ º  Ðrelevant€part:Ð £ó ÐÌÓ XÓÓ XÓ(b)€In€order€to€carry€out€the€legislative€intent€that€all€of€such€sections,€which€nowÐ uÅ Ðapply€to€the€recovery€of€state€taxes€erroneously€paid,€be€conformed€to€apply€also€toÐ ^® Ðthe€recovery€of€taxes€erroneously€paid€to€municipalities,€the€following€provisions€areÐ G— Ðadded:Ð 0€ Ð(1)€The€municipal€officer€collecting€any€municipal€taxes€paid€under€protest€shall€payÐ i Ðsuch€revenue€into€the€municipal€treasury€and,€at€the€time€of€payment,€shall€giveÐ  R Ðnotice€to€the€mayor€and€board€of€commissioners€or€other€governing€body€of€suchÐ ë ; Ðmunicipality€that€the€taxes€were€paid€under€protest€.€.€.€.Ð Ô!$  ÐÓ X¨?ÓÓ Xš?ÓÌTenn.€Code€Ann.€ðð€67„1„911.€€According€to€the€Defendants,€the€significant€part€of€the€foregoingÐ ¦#ö" Ðstatute€is€the€requirement€that€a€taxpayer€pay€a€disputed€tax€ð ðunder€protestðð€before€challenging€theÐ $ß# Ðtax.€€The€stipulated€facts€indicate€that,€of€all€the€Plaintiffs€in€this€action,€only€James€B.€Herrin€andÐ x%È $ ÐAnne€Fluharty€followed€the€procedure€enumerated€in€Tenn.€Code€Ann.€ðð€67„1„911.€€The€DefendantsÐ a&±!% Ðargue€that,€as€a€result,€the€lower€court€lacked€subject€matter€jurisdiction€to€hear€any€claims€in€thisÐ J'š"& Ðmatter€except€those€brought€by€Mr.€Herrin€and€Ms.€Fluharty.€€We€disagree.Ð 3(ƒ#' ÐÌà  àWe€recently€visited€this€issue€in€òòDecatur€County€v.€Vulcan€Materials€Co.óó,€No.€W2001„Ð *U%) Ð00858„COA„R3„CV,€2002€WL€31786985,€at€*1€(Tenn.€Ct.€App.€2003)€and€found€that€ð ðpaymentÐ î*>&* Ðunder€protestðð€is€no€longer€the€exclusive€procedure€to€challenge€a€tax.€€òòIdóó.€at€*5.€€In€that€case,€weÐ ×+''+ Ðrecognized€that€Tenn.€Code€Ann.€ðð€67„1„1807€(2003)€relieves€the€obligation€to€pay€ð ðunder€protestððÐ ° Ðbefore€pursuing€a€claim€against€the€governmental€entity€imposing€the€tax.€€òòIdóó.€€The€wording€of€theÐ ™é Ðstatute,€we€found,€is€sufficiently€broad€to€encompass€claims€involving€taxes€paid€to€local€entitiesÐ ‚Ò Ðsuch€as€counties€and€municipalities.€€òòIdóó.€€Accordingly,€we€find€that€the€Plaintiffs€in€the€present€actionÐ k» Ðhad€no€precedent€obligation€to€pay€the€disputed€taxes€ð ðunder€protestðð€before€bringing€their€claims,Ð T¤ Ðand€we€affirm€the€finding€of€the€lower€court€on€this€issue.€Ð =  ÐÌà  àIn€their€next€jurisdictional€issue€on€appeal,€the€Defendants€maintain€that€all€claims€againstÐ  _ Ðthe€City€of€Millington€should€be€dismissed€for€lack€of€ripeness.€€The€Defendants€base€this€argumentÐ ø H Ðon€the€fact€that,€while€Millington€has€the€authority€to€impose€an€occupancy€tax,׃×Ý ƒ#ÃÝòòÚ  Ú2Ú  ÚóóÝ  Ý×  ×€it€has€declined€toÐ á 1  Ðactually€do€so.€€It€is€their€contention€that€the€lower€court€may€not€rule€on€the€validity€of€a€taxÐ Ê   ÐMillington€has€yet€to€impose,€because€to€do€so€would€amount€to€rendering€an€advisory€opinion.€€TheÐ ³  ÐDefendants€rely€upon€two€sources€of€authority€in€support€of€their€position.€€They€first€direct€ourÐ œì  Ðattention€to€the€holding€in€òòState€of€Tennessee€v.€Williamson€Tobacco€Corp.óó,€18€S.W.3d€186€(Tenn.Ð …Õ  Ð2000),€in€which€the€Tennessee€Supreme€Court€held:Ð n¾  ÐÌÓ XÓÓ XÓ[A]€declaratory€judgment€action€cannot€be€used€by€a€court€to€decide€a€theoreticalÐ @ Ðquestion,€render€an€advisory€opinion€which€may€help€a€party€in€another€transaction,Ð )y Ðor€allay€fears€as€to€what€may€occur€in€the€future.€€Thus,€in€order€to€maintain€an€actionÐ b Ðfor€a€declaratory€judgment€a€justiciable€controversy€must€exist.€€For€a€controversyÐ ûK Ðto€be€justiciable,€a€real€question€rather€than€a€theoretical€one€must€be€presented€andÐ ä4 Ða€legally€protectable€interest€must€be€as€stake.€€If€the€controversy€depends€upon€aÐ Í Ðfuture€or€contingent€event,€or€involves€a€theoretical€or€hypothetical€state€of€facts,€theÐ ¶ Ðcontroversy€is€not€justiciable.Ð Ÿï ÐÓ X£MÓÓ X•MÓÌòòIdóó.€at€193€(internal€citations€omitted).€€The€Defendants€then€rely€upon€our€holding€in€òòHome€BuildersÐ qÁ ÐAssððn€v.€Maury€Countyóó,€No.€01A01„9706„CH„00259,€1998€WL€867255,€at€*1€(Tenn.€Ct.€App.€1998),Ð Zª Ðwhich€focuses€on€the€justiciability€of€a€challenge€to€a€county€development€tax€that€was€neverÐ C“ Ðactually€imposed.€€In€that€case,€the€Maury€County€Board€of€Commissioners€ratified€and€adopted€aÐ ,| Ðdevelopment€tax,€but€declared€that€it€would€not€be€imposed€ð ðat€this€time.ðð€€òòIdóó.€€€This€Court€held€thatÐ e Ðthere€was€no€justiciable€controversy€because€the€record€did€not€reveal€any€genuine€threat€that€MauryÐ þN ÐCounty€would€suddenly€begin€enforcing€the€tax.€€òòIdóó.€at€*2.€€The€record€in€the€present€case€likewiseÐ ç 7 Ðfails€to€indicate€that€the€City€of€Millington€has€any€plans€to€begin€enforcing€the€challenged€tax.€€AsÐ Ð!   Ðsuch,€there€is€no€justiciable€controversy€involving€Millingtonððs€occupancy€tax,€and€the€lower€courtÐ ¹" ! Ðerred€in€failing€to€dismiss€the€claims€against€Millington.€Ð ¢#ò" ÐÌòòóóà  àBefore€leaving€the€issue€of€subject€matter€jurisdiction,€we€find€it€necessary€to€address€oneÐ t%Ä $ Ðfinal€jurisdictional€principal.€€Although€neither€party€seems€to€have€raised€this€exact€issue€on€appeal,Ð ]&­!% ÐTenn.€R.€App.€P.€13(b)€requires€us€to€address€it€of€our€own€initiative.€€òòMoore€v.€Chandleróó,€675Ð F'–"& ÐS.W.2d€153,€154€(Tenn.€1984);€òòFirst€Am.€Trust€Co.€v.€Franklin„Murray€Dev.€Co.,€L.P.óó,€59€S.W.3dÐ /(#' Ð135,€140€(Tenn.€Ct.€App.€2001);òò€Morrow€v.€Bobbittóó,€943€S.W.2d€384,€391„92€(Tenn.€Ct.€App.€1996).€Ð )h$( ÐWe€must€determine€whetheròòóó€the€trial€court€lacked€jurisdiction€to€entertain€the€claims€brought€by€theÐ ° Ðhotels,€motels,€and€hotel/motel€associations.€€This€Court,€in€òòAshworth€v.€Green€Countyóó,€No.€E2002„Ð ™é Ð00500„COA„R3„CV,€2003€WL€288430,€at€*1€(Tenn.€Ct.€App.€2003),€addressed€the€standing€ofÐ ‚Ò Ðhotels€to€bring€suit€on€an€occupancy€tax€nearly€identical€to€the€ones€at€issue€in€the€instant€case.׃ ×Ý ƒ#ÃÝòòÚ  Ú3Ú  ÚóóÝ  Ý×  ×€€WeÐ k» Ðheld,€in€relevant€part:Ð T¤ ÐÌÓ XÓÓ XÓIt€is€a€well€settled€principle€in€Tennessee€that€a€party€lacks€standing€to€challenge€aÐ & v Ðtax€unless€that€party€is€the€taxpayer.€€òòBrodbine€v.€Torrenceóó,€545€S.W.2d€743,€744Ð  _ Ð(Tenn.€1977).€€This€follows€from€the€fact€that€one€who€is€not€the€party€against€whomÐ ø H Ða€given€tax€is€assessed€does€not€sustain€an€injury€distinct€and€palpable€from€theÐ á 1  Ðgeneral€population€with€respect€to€that€tax€.€.€.€The€Act€explicitly€states€that€ð ð[s]uchÐ Ê   Ðtax€is€a€privilege€tax€upon€the€transient€occupying€such€room€and€is€to€be€collectedÐ ³  Ðas€provided€by€this€Actðð.€.€.€[I]t€is€clear€that€[the€hotel€operator]€is€not€the€taxpayer.€Ð œì  ÐThe€Act€imposes€an€obligation€on€an€innkeeper€to€collect€and€remit€the€tax.€€The€ActÐ …Õ  Ðdoes€not€designate€the€operator€as€the€taxpayer€.€.€.€We€hold€that€[the€hotel€operator]Ð n¾  Ðlacks€standing€to€seek€the€relief€set€forth€in€her€complaint.€€Ð W§  ÐÓ XÓÓ XÓÌòòIdóó.€at€*3„4.€€We€find€that,€just€as€the€hotel€operator€in€òòAshworthóó€lacked€standing,€those€Plaintiffs€inÐ )y Ðthe€current€action€who€are€not€actual€taxpayers€also€lack€standing.€€Consequently,€the€lower€courtÐ b Ðlacked€subject€matter€jurisdiction€to€hear€their€claims.€€Ð ûK ÐÌà  àIn€sum,€the€lower€court€was€without€jurisdiction€to€hear€two€groups€of€claims€in€the€presentÐ Í Ðmatter.€€First,€the€trial€court€lacked€jurisdiction€to€hear€the€claims€of€any€Plaintiffs€who€are€not€actualÐ ¶ Ðtaxpayers.€€The€lower€court€also€lacked€jurisdiction€to€hear€any€claims€against€the€City€of€MillingtonÐ Ÿï Ðregarding€the€occupancy€tax.€€The€trial€court,€however,€did€still€properly€exercise€jurisdiction€overÐ ˆØ Ðthe€claims€of€the€taxpayer€Plaintiffs.€€We€must,€therefore,€address€the€substantive€issues€raised€onÐ qÁ Ðappeal€by€these€Plaintiffs.Ð Zª ÐÌà@ª ª ìàò òStandard€of€Review€Employed€by€the€Trial€CourtˆÐ ,| ÐÌà  àó óThe€Plaintiffs€contend€that€the€trial€court€failed€to€employ€a€cognizable€constitutionalÐ  P Ðstandard€when€analyzing€the€validity€of€Tenn.€Code€Ann.€ðð€67„4„1425ðð)€and€(d)€and€the€private€actsÐ é 9 Ðpassed€thereunder.€€The€final€order€of€the€lower€court€reads€in€material€part:Ð Ò!"  Ðâ âÐ »" ! ÐÓ XÓÓ XÓ[T]he€Court€finds€that€the€exemptions€provided€in€subsections€ðð)€and€(d)€are€basedÐ ° Ðâ âupon€reasonable€classifications€and€are€not€capricious,€unreasonable,€or€arbitrary;Ð ™é Ðaccordingly,€ðð€67„4„1425ðð)€and€(d)€do€not€violate€either€Article€I,€Section€8€orÐ ‚Ò ÐArticle€XI,€Section€8€of€the€Tennessee€Constitution.€€The€Court€finds€that€theÐ k» Ðdefendants€have€presented€many€possible€goals€of€the€Legislature,€which€may€haveÐ T¤ Ðreasonably€been€the€impetus€for€enacting€the€provisions€in€question€and€which€areÐ =  Ðsufficient€to€justify€the€challenged€classifications.Ð & v ÐÓ X‡dÓÓ XydÓÌWe€note,€as€an€initial€matter,€that€the€proper€standard€of€review€to€be€used€in€analyzing€theÐ ø H Ðconstitutionality€of€a€tax€statute€is€the€rational€basis€standard.€€òòCity€of€Tullahoma€v.€Bedford€Countyóó,Ð á 1  Ð936€S.W.2d€408,€412€(Tenn.€1997);€òòBrentwood€Liquors€Corp.€v.€Foxóó,€496€S.W.2d€454,€457€(Tenn.Ð Ê   Ð1973);€òòNolichuckey€Sand€Co.,€Inc.€v.€Huddlestonóó,€896€S.W.2d€782,€788€(Tenn.€Ct.€App.€1994).€€InÐ ³  Ðthe€context€of€legislation€containing€particular€classifications,€such€as€the€tax€exceptions€in€theÐ œì  Ðpresent€case,€our€supreme€court€has€held€that€the€rational€basis€standard€means€that€ð ð[i]f€any€possibleÐ …Õ  Ðreason€can€be€conceived€to€justify€the€classification,€or€if€the€reasonableness€be€fairly€debatable,ððÐ n¾  Ðthen€the€legislation€will€not€be€struck€down.€€òòEstrin€v.€Mossóó,€430€S.W.2d€345,€349€(Tenn.€1968).€Ð W§  ÐThe€standard€for€the€lower€court,€then,€was€whether€any€reasonable€basis€exists€for€the€populationÐ @ Ðexclusion€brackets€contained€in€the€occupancy€tax€statute.€€As€we€read€the€language€of€the€finalÐ )y Ðorder,€the€lower€court€employed€the€correct€standard.€€The€language€of€the€order€indicates€that€theÐ b Ðtrial€court€considered€the€proper€factors,€including€the€reasonableness€of,€and€grounds€for,€theÐ ûK Ðclassificationsòòóó.€€Accordingly,€we€affirm€the€standard€of€review€employed€by€the€trial€court.Ð ä4 ÐÌà@k k ìàò òConstitutionality€of€the€Occupancy€Tax€Exceptionsó óˆÐ ¶ ÐÌà  àThe€final€issue€raised€on€appeal€by€the€Plaintiffs€is€whether€the€lower€court€erred€in€findingÐ ‰Ù Ðthat€subsections€ðð)€and€(d)€of€Tenn.€Code€Ann.€ðð€67„4„1425,€and€the€private€acts€enactedÐ r Ðthereunder,€do€not€violate€the€equal€protection€provisions€of€Article€1,€ðð€8€and€Article€11,€ðð€8€of€theÐ [« ÐTennessee€Constitution.€€As€stated€above,€the€inquiry€into€the€constitutionality€of€these€provisionsÐ D” Ðis€governed€by€the€rational€basis€standard.€€We€note€that€ð ð[i]n€construing€statutes,€it€is€our€duty€toÐ -} Ðadopt€a€construction€which€will€sustain€a€statute€and€avoid€constitutional€conflict€if€any€reasonableÐ f Ðconstruction€exists€that€satisfies€the€requirements€of€the€Constitution.ðð€€òòNolichuckeyóó,€896€S.W.2dÐ ÿO Ðat€788€(quoting€òòDavis„Kidd€Booksellers,€Inc.€v.€McWherteróó,€866€S.W.2d€520,€529€(Tenn.€1993)).€Ð è 8 ÐIt€is€also€well€settled€that€ð ð[t]he€right€to€tax€is€essential€to€the€existence€of€government,€and€isÐ Ñ!!  Ðpeculiarly€a€matter€for€the€Legislature,€and€the€legislative€power€in€this€respect€can€only€beÐ º" ! Ðrestrained€by€a€distinct€and€positive€expression€in€the€fundamental€law.ðð€€òòIdóó.€(quoting€òòVertrees€v.Ð £#ó" ÐState€Bd.€of€Electionsóó,€214€S.W.€737,€740€(Tenn.€1919)).€€As€such,€any€plaintiff€seeking€to€challengeÐ Œ$Ü# Ðthe€constitutionality€of€a€tax€statute€bears€a€heavy€burden.€€òòIdóó.Ð u%Å $ ÐÌà  àThe€record€indicates€that,€at€trial,€the€Defendants€provided€expert€affidavits€giving€possibleÐ G'—"& Ðreasons€for€the€exclusion€granted€to€Shelby,€Williamson,€and€Rutherford€Counties€in€the€occupancyÐ 0(€#' Ðtax€statute.€€These€included€affidavits€by€Dr.€Harry€A.€Green,€the€Executive€Director€of€theÐ )i$( ÐTennessee€Advisory€Commission€on€Intergovernmental€Relations,€and€Dexter€Muller,€the€formerÐ *R%) ÐDirector€of€Planning€and€Development€in€Memphis€and€Shelby€County.€€These€experts€opined€thatÐ ë*;&* ÐShelby,€Williamson,€and€Rutherford€Counties€have€all€experienced€rapid€and€substantial€Ô_ÔpopulationÐ Ô+$'+ Ðgrowth€over€the€last€few€decades.€€This€growth,€according€to€the€Plaintiffsðð€experts,€has€producedÐ ° Ðdifferent€and€greater€burdens€on€these€counties€to€provide€for€streets,€schools,€police€and€fireÐ ™é Ðprotection,€and€other€county€and€municipal€services.€€It€is€this€increased€burden€that€necessitatesÐ ‚Ò Ðgreater€tax€revenues€and€justifies€the€exception€allowing€double„occupancy€taxation€in€Shelby,Ð k» ÐWilliamson,€and€Rutherford€Counties.€€The€Plaintiffs€counter€with€statistics€indicating€that€otherÐ T¤ Ðcounties€have€experienced€similar€growth.€€They€argue€that€such€statistics€make€it€unreasonable€forÐ =  Ðthe€General€Assembly€to€classify€based€upon€population€and€population€growth.€€This€argument€isÐ & v Ðinsufficient€to€meet€the€heavy€burden€borne€by€the€challenger€of€a€tax€statute.€€The€fact€remains€thatÐ  _ Ðthe€Legislature€need€only€find€ð ðany€possible€reasonðð€that€justifies€the€classification.€€The€DefendantsÐ ø H Ðhave€shown€through€expert€opinion€that€there€exists,€at€the€least,€a€fair€debate€over€the€need€ofÐ á 1  ÐShelby,€Williamson,€and€Rutherford€Counties€for€their€respective€exclusions.€€The€Legislature€wasÐ Ê   Ðwell€within€its€discretion€to€credit€this€view€and€act€upon€it.€€We€will€not€disturb€the€decision€of€theÐ ³  ÐLegislature€under€such€circumstances.€€Accordingly,€we€affirm€the€lower€court€in€its€finding€on€thisÐ œì  Ðissue.Ð …Õ  ÐÌà@%ìàò òConclusionó óˆÐ W§  ÐÌà  àFor€the€foregoing€reasons,€we€reverse€the€ruling€of€the€lower€court€in€part,€affirm€in€part,€andÐ *z Ðremand€for€proceedings€consistent€with€this€opinion.€€Costs€on€appeal€are€taxed€to€theÐ c ÐPlaintiffs/Appellants,€Admiralty€Suites€and€Inns,LLC,€and€their€surety,€for€which€execution€mayÐ üL Ðissue€if€necessary.Ð å5 ÐÌà  àà ` àà ¸ àà  àà h àÌà  àà ` àà ¸ àà  àà h àà À à_________________________Ð  ð Ðà  àà ` àà ¸ àà  àà h àà À àALAN€E.€HIGHERS,€JUDGE€€€€€Ô#†XÃçXXX'^£ #ÔÔ#†¼»XXÃçu #ÔÔ€XÃçX»¼Ô