For complete bill history, amendments, summary, and fiscal note information, please visit https://wapp.capitol.tn.gov/apps/billsearch/BillSearchAdvanced.aspx.
TSCPA is monitoring SB 2103/HB 1893, SB 1915/HB 1859, SB 2429/HB 1903, and SB 2694/HB 2134. Additional information on the proposed bills can be found below.
BUDGET
SB 1849 by Watson/HB 1704 by Hazlewood - Appropriations - legislative enactments passed during 2024 session. Makes appropriations for the purpose of defraying the expenses of certain legislative enactments passed during the 2024 session of the 113th General Assembly; earmarks sufficient state funds for the purpose of funding any bill naming a highway or bridge in honor of a service member killed in action.
Senate Status: Referred to Judiciary.
House Status: Referred to Finance, Ways & Means Subcommittee.
SB 1850 by Watson/HB 1703 by Hazlewood - Growth of appropriations from state tax revenues. Deletes requirements that budget document includes personal income statement for calendar year 1977 and actual state appropriations for fiscal year 1977-1978.
Senate Status: Referred to Judiciary.
House Status: Referred to Finance, Ways & Means Subcommittee.
SB 1851 by Watson/HB 1705 by Hazlewood - Bond issuance. Authorizes the state, acting by resolution of its funding board, to issue and sell its bonds and bond anticipation notes for certain purposes.
Senate Status: Referred to Judiciary.
House Status: Referred to Finance, Ways & Means Subcommittee.
ECONOMIC DEVELOPMENT
SB 2623 by Lundberg/HB 2835 by Crawford - Report on economic development impact of the Border Region Retail Tourism Development District Act. Requires, on or before January 1, 2025, the commissioner of economic and community development, in consultation with the commissioner of revenue, to report to the finance, ways and means committees of the house of representatives and the senate on the economic development impact of the Border Region Retail Tourism Development District Act on the regions of the state where certified border region retail tourism development districts are located.
Senate Status: 02/01/24 - Introduced in the Senate
House Status: 02/01/24 - Introduced in the House
EDUCATION
SB 1959 by Crowe/HB 1785 by G. Martin - Uniform accounting policy manual for local school system. Replaces the uniform accounting policy manual for local school systems with an internal school funds
manual. Removes the requirement that the commissioner of finance and administration approve the manual so that only the comptroller of the treasury's approval of the manual is required.
Senate Status: Set in Education on 2/14/24.
House Status: Education Administration passed on 2/7/24; Set on floor on 2/12/24.
INSURANCE GENERAL
SB 1698 by Bailey/HB 2905 by Kumar - Contracts between a taxpayer and tax preparation service company. Expands the conditions under which certain contracts between a taxpayer and tax preparation service company are not considered contracts of insurance to include circumstances when the tax preparation service company obtains a contractual liability insurance policy or posts a bond. >Bill is for credit life company in Tennessee. Amends 56-7-101. There is no definition of tax preparer.<
Senate Status: Commerce & Labor passed on 2/6/24; Sent to Calendar Committee. House Status: 02/01/24 – Introduced in the House
PROFESSIONS & LICENSURE
SB 1915 by Niceley/HB 1859 by Davis - Occupational licensing for individuals with a criminal record. Prohibits certain licensing authorities from automatically barring an individual from licensure because of the individual's criminal record. Requires the licensing authority to provide individualized consideration of an individual's criminal record and circumstances. Specifies which convictions a licensing authority may consider in deciding for licensure. Makes other changes related to licensure determinations and criminal records including not using a vague term in its consideration and its notice or decision, including good moral character, moral turpitude, or character and fitness. >We have met with the sponsor, and she will accept language to remove accountancy.<
Senate Status: Referred to Commerce & Labor.
House Status: Referred to Business & Utilities Subcommittee.
SB 2429 by Powers/HB 1903 by Burkhart - Requirements for licensing of contractors.Changes from a reviewed or audited financial statement prepared by a licensed public accountant or a certified public accountant to a compilation prepared by a licensed public accountant or a certified public accountant that a contractor who is seeking renewal of a license with a monetary limit exceeding $1,500,000 must submit with the renewal application.
Senate Status: 01/31/24 – Introduced in the Senate
House Status: Set in Business & Utilities Subcommittee on 2/13/24.
SB 2588 by Taylor/HB 2097 by Vaughan - Issuance of advisory opinions by state regulatory boards and state health related boards. Requires state regulatory boards within the department of commerce and insurance to issue advisory opinions upon request to any person who is certified, licensed, or registered by such state entities. Also requires state health related boards within the department of health to issue advisory opinions upon request.
Senate Status: 02/01/24 - Introduced in the Senate
House Status: Referred to Department & Agencies Subcommittee.
PROPERTY & HOUSING
SB 1659 by Walley/HB 2054 by Eldridge - Increase in acreage for tax jurisdiction purposes.Increases from 1,500 to 5,000 the number of acres of land that may be placed within one property tax jurisdiction for purposes of classification and assessment as agricultural, forest, or open space land. Increases from 1,500 to 5,000 the maximum acreage available to a real property owner that may be classified as forest or open space land.
Senate Status: State & Local Government passed on 2/6/24; Sent to Finance, Ways & Means. House Status: Referred to Property & Planning Subcommittee.
SB 2037 by Lundberg/HB 2150 by Crawford - Public disclosure mandate for redevelopment projects. Requires a housing authority adopting a redevelopment plan or urban renewal plan related to a redevelopment project to publicly provide information on the estimated cost of the redevelopment project, the sources of revenue to finance the costs of the project (including the estimated tax increment), an estimate of the total amount of debt to be incurred and expected time to be fully repaid, and an estimate of how the tax increment provision will affect the revenue streams of all taxing locations in the area being developed, at least ten days prior to a public hearing about the project, rather than five.
Senate Status: Referred to State & Local Government.
House Status: Caption bill held on clerk’s desk.
PUBLIC EMPLOYEES
SB 2313 by Pody/HB 2271 by Slater - Quitclaim deeds - notification required by register of deeds. Requires a register of deeds to consult with a county assessor of property when a quitclaim deed is recorded and send a postcard notification of the recording to the address of the person or entity that paid the property taxes on the property that is the subject of the quitclaim deed for the previous tax year.
Senate Status: Referred to State & Local Government.
House Status: Caption bill held on clerk’s desk.
TAXES BUSINESS
SB 118 by Rose/HB 156 by Boyd - Extension for business tax returns. Allows for an authorized representative to also sign and apply for an extension for the business tax return deadline.
Amendment: House Finance Subcommittee amendment 1 (006999) adds hydrogen gas as a product used to power a fuel cell to the definition of alternative fuel for the purposes of fuel tax law. Subjects hydrogen gas to the compressed natural gas tax. Exempts hydrogen gas from the sales and use tax. Effective January 1, 2024. Senate amendment 2 (003511) adds hydrogen gas as a product used to power a fuel cell to the definition of alternative fuel for the purposes of fuel tax law. Subjects hydrogen gas to the compressed natural gas tax. Exempts hydrogen gas from the sales and use tax. Effective January 1, 2024.
Senate Status: Senate passed on 4/21/23 with amendment.
House Status: Taken off notice in Finance, Ways & Means Subcommittee on 4/18/23.
SB 689 by Reeves/HB 504 by Rudd - Professional privilege tax phasing out. Phases out the professional privilege tax over four-year period for taxes that begin on or after June 1, 2024 and reduces the tax cost by
$100 for every year.
Fiscal Note: (Dated March 4, 2023) Decrease State Revenue Net Impact $20,034,600/FY23-24
$40,069,300/FY24-25 $60,103,900/FY25-26 $80,138,600/FY26-27 and Subsequent
Years Decrease State Expenditures $202,200/FY23-24 $404,400/FY24-25
$606,600/FY25-26 $808,800/FY26-27 and Subsequent Years Increase Local Revenue
$36,800/FY23-24 $73,500/FY24-25 $110,200/FY25-26 $147,000/FY26-27 and Subsequent Years
Amendment: House Finance, Ways and Means Subcommittee amendment 1 (005063) decreases the professional privilege tax from $400 to $300. Applies to privilege taxes due and payable after May 31, 2024.
Senate Status: Finance, Ways & Means deferred on 4/21/23 to 2024.
House Status: Taken off notice in Finance, Ways & Means Subcommittee on 4/18/23.
SB 981 by Yager/HB 1117 by Carr - Exemption from franchise and excise taxes - community development entity. Exempts from franchise and excise taxes, a community development entity or sub-community development entity that is certified by the United States department of the treasury's community development financial institutions fund, and that has received an allocation of the federal new markets tax credits or federal sub-new markets tax credits from a community development entity that is used to fund a qualified low-income community investment in a Tennessee facility or operations of a business or nonprofit entity where the qualified low-income community investment expands the Tennessee-based operations of the business or nonprofit entity.
Fiscal Note: (Dated March 6, 2023) Decrease State Revenue Exceeds $40,000/FY23-24 Exceeds
$100,000/FY24-25 and Subsequent Years
Senate Status: Finance, Ways & Means deferred on 4/21/23 to 2024.
House Status: Taken off notice in Finance, Ways & Means Subcommittee on 4/18/23.
SB 1591 by Walley/HB 1636 by Haston - Submission of professional privilege tax documents and payments from person 65 years of age or older. Allows persons who are 65 years of age or older to file professional privilege tax documents and payment in paper form in lieu of any required electronic form. Permits the commissioner of revenue to require that the paper filing or payment be accompanied by a manual handling fee.
Senate Status: Referred to Finance, Ways & Means.
House Status: Referred to Finance, Ways & Means Subcommittee.
SB 1675 by Briggs/2241 by Cochran - Notice of delinquent hotel-motel taxpayers. Removes the requirement that the notice of delinquent hotel-motel taxpayers be published once a week for two consecutive weeks in the month of January.
Senate Status: Referred to State & Local Government.
House Status: Caption bill held on clerk’s desk.
SB 1676 by Briggs/HB 2240 by Cochran - Annual report on hotel-motel tax. Requires a municipality levying the hotel-motel tax under general law to submit a report annually detailing how the revenue earned from the tax is used by the municipality. Requires the comptroller of the treasury to audit the reports of the municipality. Requires a municipality found to have used the funds improperly to appropriate general funds in the same amount for promotion of tourism and tourism development. Prohibits a municipality, on and after July 1, 2025, from levying or increasing the hotel-motel tax if the aggregate total tax would exceed 8%.
Senate Status: Referred to State & Local Government.
House Status: Referred to Property & Planning Subcommittee.
SB 1780 by Swann/HB 1857 by Moon - Local government tax rates on tax collected on the occupancy of short-term rental units. Requires the department of revenue to post on its website the rate information it receives from local governments regarding local tax collected on the occupancy of short-term rental units.
Senate Status: Referred to State & Local Government.
House Status: 01/24/24 – Introduced in the House
SB 1841 by Walley/HB 2586 by Russell - Suspension of professional privilege tax based on revenue over- collections. Suspends the professional privilege tax for any year in which the amount of state general fund tax revenue over-collections during the prior fiscal year exceeded $500,000,000.
Senate Status: Referred to Finance, Ways & Means.
House Status: Set in Finance, Ways & Means Subcommittee on 2/14/24.
SB 1885 by Jackson/HB 2421 by Shaw - Combined franchise and excise tax returns for hospital corporations.
Permits all for-profit hospital corporations to file combined franchise and excise tax returns.
Senate Status: 01/24/24 - Introduced in the Senate
House Status: Referred to Health Subcommittee.
SB 1904 by Hensley/HB 2039 by Butler - Tax credits equal to unreimbursed TennCare costs for certain healthcare providers. Authorizes business, excise, and franchise tax credits equal to unreimbursed TennCare costs for eligible healthcare providers that provide healthcare services to TennCare recipients. Allows a refund to be issued in lieu of a tax credit on the condition that the refund be used to make a charitable contribution.
Senate Status: Referred to Finance, Ways & Means.
House Status: Referred to Insurance Subcommittee.
SB 2103 by Johnson/HB 1893 by Lamberth - Value of tangible property as minimum tax base. Deletes the provision requiring that the measure of the franchise tax must not be less than the actual value of the real or tangible property owned or used by a taxpayer in this state. Authorizes the commissioner of revenue to issue refunds under certain conditions to taxpayers who properly file a claim for refund for taxes paid under that provision. >Administration bill.<
Senate Status: Referred to Finance, Ways & Means.
House Status: Referred to Finance, Ways & Means Subcommittee.
SB 2171 by Hensley/HB 1839 by Parkinson - Mental Health Preceptor Tax Incentive Program. Allows the employer of a community-based faculty preceptor to credit against the employer's franchise and excise taxes paid for each employed preceptor who completes a preceptorship rotation that has a focus on mental health services. Details how credits are accrued and how they can be used. Describes that in no event must the total amount of the tax credit for a taxable year exceed the taxpayer's franchise and excise tax liability. States that a taxpayer is not allowed to apply a tax credit earned against a prior or succeeding year's tax liability.
Senate Status: Referred to Finance, Ways & Means.
House Status: Set in Finance, Ways & Means Subcommittee on 2/14/24.
SB 2198 by Yarbro/HB 2745 by Clemmons - Reporting requirements for department of revenue. Requires the department of revenue to submit, by January 1, 2026, a one-time report to the finance, ways and means committees of the house and the senate concerning the revenue effects of certain amendments made to the provision of the Franchise Tax Law of 1999 that determines the apportionment of a taxpayer's net worth.
Senate Status: Referred to Finance, Ways & Means.
House Status: 02/01/24 – Introduced in the House
SB 2338 by Yager/HB 1926 by Williams - Changing of the due date of the taxpayer's business tax return. Changes the provision that the commissioner can change the tax return associated with a change in the tax period for the Business Tax Act from not less than two calendar months following the end of the tax period to not less than 60 days following the end of the tax period. >Likely a caption bill to amend the Business Tax Act.<
Senate Status: Referred to Finance, Ways & Means.
House Status: 01/24/24 - Introduced in the House
SB 2617 by Niceley - Percentage of qualified voters required to file petition for referendum on privilege tax. Increases from 10% to 15%, the minimum number of qualified voters who voted in the last gubernatorial election that is required to file a petition calling for a referendum on the question of whether a privilege tax should be imposed on businesses making sales in a tourism development zone. Requires the petition to be filed within 45 days, rather than 30 days, of final approval of an ordinance authorizing the privilege tax.
Senate Status: 02/01/24 - Introduced in the Senate
SB 2694 by Southerland/HB 2134 by Eldridge - Deductions from net earnings for state excise tax. Allows for any expense, including wages and compensation, allowed for employee retention credit against the federal payroll tax and the Coronavirus Aid, Relief, and Economic Security Act to be deducted from net earnings for the state excise tax.
Senate Status: 02/01/24 – Introduced in the Senate
House Status: Referred to Finance, Ways & Means Subcommittee.
SB 2792 by Watson/HB 2924 by Hazlewood - Report on total annual amount of industrial machinery franchise and excise tax credits. Requires the commissioner of revenue to report on or before February 1, 2025, to the finance, ways and means committees of the senate and the house of representatives the total annual amount of industrial machinery franchise and excise tax credits provided under Section 67-4- 2009(3), for fiscal years 2020-2024. >Caption bill.<
Senate Status: 02/01/24 - Filed for Introduction
House Status: 02/01/24 - Introduced in the House
TAXES FUEL
SB 2307 by Rose/HB 2109 by Boyd - Includes hydrogen gas under compressed natural gas tax. Designates hydrogen gas as an alternative fuel within the scope of fuel tax law. Includes hydrogen gas in the compressed natural gas tax and provides an exemption for hydrogen gas from sales and use tax.
Senate Status: Referred to Finance, Ways & Means.
House Status: Finance, Ways & Means Subcommittee on 2/7/24 placed behind the budget.
SB 2235 by Campbell/HB 2194 by Mitchell - Reduces the gasoline tax. Reduces the gasoline tax from 26 cents per gallon to 20 cents per gallon.
Senate Status: Referred to Finance, Ways & Means.
House Status: Referred to Transportation Subcommittee.
SB 2319 by Yager/HB 2278 by Butler - Maximum severance tax a county legislative body may impose.
Increases, from .15 to .45 per ton, the maximum severance tax a county legislative body may impose.
Senate Status: Referred to Energy, Agriculture & Natural Resources.
House Status: Caption bill held on clerk’s desk.
SB 2326 by Yager/HB 2151 by Keisling - Clay County - severance taxes. Authorizes Clay County to increase the severance tax rate from 15 cents up to 45 cents. Annually adjusts the maximum tax rate based on the percentage of change in the average consumer price index (all items-city average) as published by the United States department of labor, bureau of labor statistics. Requires changes in the tax rate to be passed by a two-thirds majority vote of the county legislative body.
Senate Status: Referred to Energy, Agriculture & Natural Resources.
House Status: Referred to Cities & Counties Subcommittee.
TAXES GENERAL
SB 131 by Stevens/HB 639 by Bricken – Joint report on transportation equity fund.
Amendment: Senate Finance Revenue Subcommittee amendment 1 (004141) clarifies that the amount of any qualified charitable contribution of food by an excise taxpayer be equal to the amount deducted for the qualified contribution of food, in accordance with 26
U.S.C. § 170(e)(3), when computing federal taxable income for an excise taxpayer for the tax year. Specifies that food is defined as either articles used for food or drink for humans or other animals, chewing gum, or articles used for components of any food, drink, or chewing gum.
Senate Status: Finance, Ways & Means deferred on 4/21/23 to 2024.
House Status: Withdrawn in House on 2/8/24.
SB 1944 by Crowe/HB 2855 by Hill - Professional privilege tax repeal. Repeals the professional privilege tax for the tax year beginning on June 1, 2025.
Senate Status: Referred to Finance, Ways & Means.
House Status: 02/01/24 – Introduced in the House
SB 2426 by Jackson/HB 1843 by Ragan - Allied Investments in Tennessee Act. Describes how to increase supply chain investment, job creation, wage growth, and economic well-being within Tennessee by providing 100% bonus depreciation for certain business capital investments in Tennessee, and to prohibit the application of tax credits and other economic or financial incentives for companies domiciled within countries of concern.
Senate Status: Referred to Finance, Ways & Means.
House Status: Government Operations passed on 2/5/24; Set in Finance, Ways & Means Subcommittee on 2/14/24.
TAXES PROPERTY
SB 1725 by Crowe/HB 1813 by Reedy - Property tax relief for disabled veterans. Expands eligibility for property tax relief to a veteran who acquired a service-connected disability that is determined by the United States Department of Veterans Affairs to be permanent and total due to individual unemployability.
Senate Status: Referred to State & Local Government.
House Status: Referred to Property & Planning Subcommittee.
SB 1733 by Niceley/HB 2021 by Marsh - Tax exemptions for tree canopy cover. Creates tax exemption for portions of property that provide tree canopy cover in certain counties, subject to the approval of the local governing body in such counties.
Senate Status: Referred to State & Local Government.
House Status: Referred to Property & Planning Subcommittee.
SB 1772 by Lundberg/HB 1941 by Reedy - Property tax relief for disabled veteran homeowners. Changes the amount of reimbursement for property taxes for disabled veteran homeowners from payment on the first
$175,000 of full market value to the first $300,000 of full market value.
Senate Status: Referred to State & Local Government.
House Status: Referred to Property & Planning Subcommittee.
SB 1777 by Swann/HB 1734 by Moon - Classification of agricultural land under the greenbelt law. Revises the minimum size requirements for one of two noncontiguous tracts of property to qualify as agricultural land under the greenbelt law, from a size of at least 10 acres to less than 15 acres.
Senate Status: Referred to State & Local Government.
House Status: Referred to Agriculture & Natural Resources Subcommittee.
SB 1882 by Massey/HB 1980 by Wright - Exemption - charitable nonprofit corporation in Knox County. Authorizes a charitable nonprofit corporation located in Knox County or within a municipality located within Knox County that acquires replacement property which is operated as a licensed residential home for the aged, to claim and file a property tax exemption as a religious, charitable, scientific, or nonprofit educational institution.
Senate Status: Referred to State & Local Government.
House Status: Referred to Property & Planning Subcommittee.
SB 1900 by Oliver/HB 1715 by Freeman - Property tax relief for veterans with disabilities.Requires the state to reimburse veterans with permanent and total disabilities for 100% of the local property taxes paid on their residences. Removes the limitations that such reimbursement be a partial payment and that it be paid on the first $175,000 of the full market value of the residence.
Senate Status: Referred to State & Local Government.
House Status: Set in Property & Planning Subcommittee on 2/14/24.
SB 1946 by Walley/HB 2057 by Carr - Revises schedule of property reappraisals by county property assessors. Replaces the six-year reappraisal cycle with the requirement for counties to choose between a reappraisal program that requires reappraisal to occur once per year, once every two years, once every three years, or once every four years. Also details requirements for the reappraisal programs including the updates to reappraisal requirements and procedures, maximum costs to assess property within a city, and assessments of cemeteries.
Senate Status: Referred to State & Local Government.
House Status: Property & Planning Subcommittee passed on 2/7/24; Set in Local Government on 2/13/24.
SB 2111 by Lundberg/HB 2217 by Crawford - Tax formula for calculating tax relief on real property owned by disabled veterans. Revises the formula for calculating tax relief on real property owned by eligible disabled veterans so that in determining the amount of relief to such a taxpayer, the assessed value on the first $175,000 of full market value is to be multiplied by the ad valorem tax rate of the jurisdiction instead of by a rate that has been adjusted to reflect the relationship between appraised value and market value in that jurisdiction.
Senate Status: Referred to State & Local Government.
House Status: Referred to Property & Planning Subcommittee.
SB 2172 by Hensley/HB 2312 by Baum - Acceptance of partial payments of delinquent property taxes. Authorizes municipal tax collectors and taxing entities to also accept partial payments of delinquent property taxes in the same manner as county trustees. Requires such officials to include in their plan for accepting partial payments a description of the accounting system technology or manual processes to be used to record partial payments of delinquent property taxes and a statement indicating that funds received as partial payments on delinquent property taxes will reduce the amount of delinquent property tax, interest, statutory fees, and court costs, by relative amounts on a pro-rata basis.
Senate Status: Referred to State & Local Government.
House Status: Set in Property & Planning Subcommittee on 2/14/24.
SB 2208 by Niceley/HB 2319 by Marsh - Creates tax exemption for portions of property that provide tree canopy cover. Creates tax exemption for portions of property that provide tree canopy cover in counties whose local governing bodies elect to create the exemption by two-thirds majority vote.
Senate Status: Referred to State & Local Government.
House Status: Set in Property & Planning Subcommittee on 2/14/24.
SB 2218 by Powers/HB 1902 by Burkhart - Payment of greenbelt rollback taxes. Requires the payment of greenbelt rollback taxes in full at closing when greenbelt property is sold.
Senate Status: Referred to State & Local Government.
House Status: Set in Agriculture & Natural Resources Subcommittee on 2/13/24.
SB 2238 by Yarbro/HB 2467 by Stevens - Classification of the property as zoning-exempt property. Authorizes a county to create a program by which an owner of real property in the county may apply for a classification of the property as zoning-exempt property, which values the property based on the zoning classification that existed at the time the owner came into possession of the property and its current use.
Senate Status: Referred to State & Local Government.
House Status: Referred to Property & Planning Subcommittee.
SB 2417 by Swann/HB 2581 by Russell - Payment in lieu of tax agreements to be approved by a majority vote of the city or county legislative body. Requires, in counties with a population of 60,000 or less, payment in lieu of tax agreements to be approved by a majority vote of the city or county legislative body of each affected taxing jurisdiction before an industrial development corporation, housing authority, or health, educational, and housing facility corporation negotiates the agreement.
Senate Status: Referred to State & Local Government.
House Status: 02/01/24 – Introduced in the House
SB 2483 by Kyle/HB 2481 by Thompson - Filing an exception regarding the property tax assessment for a utility or carrier. Changes, from 20 days to three weeks, the time in which a person or entity must file an exception regarding the property tax assessment for a utility or carrier before the person or entity is deemed to have waived any objection to the assessment.
Senate Status: 01/31/24 - Introduced in the Senate
House Status: Caption bill held on clerk’s desk.
SB 2550 by Swann/HB 2624 by Carr - Revises current law regarding property tax liens and delinquent property taxes. Grants first priority to property tax liens relative to receiver's liens and other liens established under the Neighborhood Preservation Act and the Tennessee Local Land Bank Program. Clarifies that various provisions governing judicial sales do not apply to property tax proceedings. Makes various revisions to laws governing property tax liens, delinquent property taxes, and property tax proceedings.
Senate Status: 02/01/24 - Introduced in the Senate
House Status: 02/01/24 - Introduced in the House
SB 2778 by Bowling/HB 2018 by Marsh - Removal of repeal date for collection agent retention. Removes the July 1, 2024, repeal date for the provision detailing the retention by a county trustee of an agent to collect tangible personal property taxes from a delinquent taxpayer.
Senate Status: 01/31/24 – Filed for Introduction
House Status: Caption bill held on clerk’s desk.
SB 2816 by Reeves/HB 2627 by Baum - Professional privilege tax repeal. Repeals the privilege tax for any tax year ending after May 31, 2025.
Senate Status: 02/01/24 - Filed for Introduction
House Status: 02/01/24 - Introduced in the House
SJR 158 by Niceley - Constitutional Amendments - state tax on property. Proposes additional language in Article II, Section 28 to prohibit the general assembly from levying, authorizing, or otherwise permitting a state tax on property.
Senate Status: Referred to Judiciary.
TAXES SALES
SB 395 by Kyle/HB 342 by Sparks - Exemption - retail sale of gun safes and gun safety devices. Permanently exempts from sales and use tax, the retail sale of gun safes and gun safety devices. Removes the temporary sales tax holiday.
Fiscal Note: (Dated February 6, 2023) Decrease State Revenue Net Impact $1,351,700/FY23-24 and Subsequent Years Decrease Local Revenue Net Impact $550,200/FY23-24 and Subsequent Years
Senate Status: Finance, Ways & Means deferred on 4/21/23 to 2024.
House Status: Taken off notice in Finance, Ways & Means Subcommittee on 4/18/23.
SB 462 by Briggs/HB 1187 by Garrett – Sale tax distribution change. Reduces from 29.0141 percent to 28.5262 percent, the share of state sales and use tax revenue deposited to the state general fund. Increases, from 4.6030 percent to 5.0909 percent, the share appropriated to municipalities.
Fiscal Note: (Dated March 9, 2023) Increase State Revenue $551,400/FY22-23 and Subsequent Years /Municipal Technical Advisory Service Decrease State Revenue
$55,142,000/FY22-23 and Subsequent Years /General Fund Increase Local Revenue
$54,590,600/FY22-23 and Subsequent Years
Amendment: House Finance Subcommittee amendment 1 (006663) requires that all revenue generated from the increase in the rate of sales and use tax from the tax levied at the rate of 2.75% on the amount in excess of $1,600 but less than $3,200 on the sale or use of any single article of personal property must be paid into the state general fund and allocated exclusively for general state purposes. Requires that revenue generated from the increases in the rate of sales and use tax from 6% to 7% must be apportioned, paid, and allocated in specific amounts over every fiscal year for the next six fiscal cycles. Requires all revenue generated from the 0.5% increases in the sales and use tax rate that became effective April 1, 1992, must be deposited in the state general fund and earmarked for education purposes in K-12 schools. Requires that revenue generated from the 0.5% must continue to be deposited in the state general fund and earmarked for education purposes in K-12 schools regardless of whether the tax rate is reduced below 6%.
Senate Status: Taken off notice in Finance, Ways & Means on 4/20/23.
House Status: Finance, Ways & Means Subcommittee deferred on 2/7/24 to Special Calendar to be Published with Final Calendar.
SB 529 by Haile/HB 1184 by Garrett - Removes sales tax on infant diapers, wipes, and formula. Exempts from sales or use taxes, infant formula and diapers and wipes designed to be used by infants and children. Defines infant formula as a liquid or powder intended to be for special dietary use solely as a food for infants and children by nature of its simulation of human milk.
Fiscal Note: (Dated February 16, 2023) Decrease State Revenue Net Impact $16,679,800/FY23-24 and Subsequent Years Decrease Local Revenue Net Impact $7,273,000/FY23-24 and Subsequent Years
Senate Status: Finance, Ways & Means deferred on 4/21/23 to 2024.
House Status: Taken off notice in Finance, Ways & Means Subcommittee on 4/18/23.
SB 741 by Kyle/HB 972 by Thompson - Exemption - feminine hygiene products. Exempts feminine hygiene products from sales tax on the annual sales tax holiday.
Fiscal Note: (Dated February 22, 2023) Decrease State Revenue Net Impact $172,200/FY23-24 and Subsequent Years Increase State Expenditures $67,000/FY23-24 and Subsequent Years Decrease Local Revenue Net Impact $3,300/FY23-24 and Subsequent Years
Senate Status: Finance, Ways & Means deferred on 4/21/23 to 2024.
House Status: Referred to Finance, Ways & Means Subcommittee.
SB 780 by Crowe/HB 1415 by Raper - Exemption for automobiles purchased by members of the Tennessee air or army national guard. Exempts the first $15,000 of the purchase price of an automobile from the sales tax if the purchaser is a member of the Tennessee air or army national guard. Specifies that in order to qualify for the exemption, the purchaser is required to provide to the seller, or to the county clerk when appropriate, documentation from the purchaser's unit confirming membership in the Tennessee national guard and that the purchaser is in good standing with the unit
Fiscal Note: (Dated February 17, 2023) Decrease State Revenue $2,347,000/FY23-24 and Subsequent Years Decrease Local Revenue $143,800/FY23-24 and Subsequent Years
Senate Status: Finance, Ways & Means deferred on 4/21/23 to 2024.
House Status: Taken off notice in Finance, Ways & Means Subcommittee on 4/18/23.
SB 1140 by Lundberg/HB 886 by Hawk - Compensation for costs incurred by dealers in accounting for and remitting sales and use taxes. Allows dealers, when reporting and remitting sales taxes to the department of revenue, to retain a certain portion of such taxes in order to compensate for costs incurred in accounting for and remitting such taxes. Establishes certain maximum limitations for certain dealers to a maximum of
$25 per report.
Fiscal Note: (Dated February 27, 2023) Decrease State Revenue - $2,814,500/FY23-24 and Subsequent Years/General Fund $1,159,000/FY23-24 and Subsequent Years/Sinking Fund $463,900/FY23-24 and Subsequent Years/DOR Decrease Local Revenue -
$5,806,100/FY23-24 and Subsequent Years
Senate Status: Finance, Ways & Means deferred on 4/21/23 to 2024.
House Status: Taken off notice in Finance, Ways & Means Subcommittee on 4/18/23.
SB 1734 by Niceley - Sales tax exemptions with physical cash, gold, and silver. Exempts from sales tax the first
$500 of the sales price on a sale of tangible personal property paid for with physical cash declared legal tender, including gold and silver.
Senate Status: Referred to Finance, Ways & Means.
SB 1741 by Haile/HB 1835 by Rudd - Sales tax allocation. Allocates 2.83% of the sales and use tax collected in the 11 fastest-growing counties to such counties. Requires such counties to earmark such revenue for educational facility maintenance and construction and infrastructure.
Senate Status: Referred to Finance, Ways & Means.
House Status: Referred to Finance, Ways & Means Subcommittee.
SB 1755 by Lowe/HB 1637 by G. Martin - Sales tax exemption for infant formula, diapers, and wipes. Creates an exemption of sales tax from the retail sale of infant formula, diapers, and wipes if sold between July 1, 2024, and June 30, 2025.
Fiscal Note: (Dated January 26, 2024) Decrease State Revenue Net Impact $23,776,600/FY24-25 Decrease Local Revenue Net Impact $321,100/FY24-25
Senate Status: Referred to Finance, Ways & Means.
House Status: Finance, Ways & Means Subcommittee on 1/31/24 placed behind the budget.
SB 1799 by Yarbro/HB 1871 by Behn - Exemption - purchase of motor vehicles by members of the military. Expands the sales tax exemption on motor vehicles to include members who are called into active military service of the United States and are deployed under orders to a duty station in another state or another country that is not a combat zone.
Senate Status: Referred to Finance, Ways & Means.
House Status: Set in Finance, Ways & Means Subcommittee on 2/14/24.
SB 1813 by Kyle/HB 2942 by Towns - Working families' tax refund. Provides a working families' tax refund for state and local sales and use tax paid on or after January 1, 2024, by low-income taxpayers who are eligible for the federal earned income tax credit.
Senate Status: Referred to Finance, Ways & Means
House Status: 02/01/24 – Introduced in the House
SB 1934 by Oliver/HB 2043 by Behn - Eliminates sales tax on groceries. Eliminates the 4% sales tax on the retail sale of food and food ingredients for human consumption. Enacts the Business Enterprise Tax Act which imposes a 0.75% tax upon the taxable enterprise value tax base of every business enterprise. Also enacts the Worldwide Combined Reporting Act which applies to the reporting of net earnings and the levying of taxes.
Senate Status: Referred to Finance, Ways & Means.
House Status: Referred to Government Operations.
SB 2085 by Johnson/HB 1686 by Lamberth - Reporting on sales tax collected on electronic nicotine delivery devices. Extends the final year, from February 1, 2030, to February 1, 2031, that the department of revenue is required to annually report information on the sales tax collected during the sales of electronic nicotine delivery devices. >Part of Administration Package.<
Senate Status: Referred to Finance, Ways & Means.
House Status: Caption bill held on clerk’s desk.
SB 2108 by Faison/HB 1864 by Faison - Sales tax holiday - price threshold for clothing and shoes. Reduces the sales tax holiday price threshold for clothing from $100 to $80. Increases the sales tax holiday price threshold for shoes from $100 to $150.
Senate Status: Referred to Finance, Ways & Means.
House Status: Set in Finance, Ways & Means Subcommittee on 2/14/24.
SB 2279 by Rose/HB 1722 by Gillespie - Reporting of sales tax collected for all electronic nicotine delivery devices. Changes the reporting month from February to January for when the department of revenue must report sales taxes collected for all electronic nicotine delivery devices to the speaker of the senate, speaker of the house of representatives, and chairs of the finance, ways and means committees of the senate and house of representatives.
Senate Status: Referred to Finance, Ways & Means.
House Status: Caption bill held on clerk’s desk.
SB 2323 by Yager/HB 2044 by Fritts - Exemption - retail sale of food and food ingredients that are voucher- eligible under WIC. Exempts from the state sales and use tax the retail sale of food and food ingredients that are voucher-eligible under the Special Supplemental Food Program for Women, Infants, and Children (WIC).
Senate Status: Referred to Finance, Ways & Means.
House Status: Referred to Finance, Ways & Means Subcommittee.
SB 2471 by Akbari/HB 2527 by Parkinson - Distribution of state tax revenues to a sports authority owned by the city of Memphis. Expands the purposes for which the apportionment and distribution of state tax revenues to a sports authority owned by the city of Memphis can be used to include payment of, or the reimbursement of, expenses associated with securing renovations to the indoor sports facility owned by the sports authority in which a National Basketball Association franchise is a tenant.
Senate Status: 01/31/24 - Introduced in the Senate
House Status: 01/31/24 - Introduced in the House
SB 2583 by Taylor/HB 2182 by White - Redefines "qualified data center" for purposes of sales and use taxes. Redefines "qualified data center" for purposes of sales and use taxes to include a data center that previously made a capital investment in excess of $100 million during an investment period not to exceed three years and creates at least 15 net new full-time employee jobs upon the data center being transferred to an affiliate pursuant to a corporate reorganization.
Senate Status: 02/01/24 – Introduced in the Senate
House Status: Referred to Finance, Ways & Means Subcommittee
SB 2690 by Southerland/HB 2793 by Faison - Distressed rural counties - sales and use tax generated from a commercial development. Extends the deadline by which a distressed rural county must apply to be eligible to retain the sales and use tax generated from a commercial development district from December 31, 2024, to December 31, 2030.
Senate Status: 02/01/24 - Introduced in the Senate
House Status: 02/01/24 - Introduced in the House
TENNCARE
SB 2015 by Reeves/HB 1988 by Johnson - Extension of the nursing home annual assessment fee. Extends the nursing home annual assessment fee to June 30, 2025.
Senate Status: Referred to Health & Welfare.
House Status: Referred to Insurance Subcommittee
