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HB0714 • 2026

Taxes, Sales

AN ACT to amend Tennessee Code Annotated, Title 67, Chapter 6, relative to sales and use taxes.

Taxes
Active

The official status still shows this bill as active or still awaiting another formal step.

Sponsor
Baum, Johnson
Last action
2025-02-10
Official status
Assigned to s/c Finance, Ways, and Means Subcommittee
Effective date
Not listed

Plain English Breakdown

The bill summary does not provide specific details on how long businesses must wait before sending sales tax to the state.

Sales Tax Remittance Schedule

This bill requires Tennessee's commissioner of revenue to create a schedule that allows businesses to hold onto sales tax collected from customers for a period of time to cover transaction fees.

What This Bill Does

  • Requires the commissioner of revenue to establish a remittance schedule allowing dealers selling tangible personal property to offset transaction fees associated with collecting sales taxes.
  • The schedule must consider the total sales tax remitted in the previous year, the percentage of transactions conducted through credit and debit cards, state fees for these transactions, and the risk-free federal funds rate.
  • Requires the commissioner to review and adjust the holding time every six months.

Who It Names or Affects

  • Businesses that sell tangible personal property in Tennessee
  • The commissioner of revenue

Terms To Know

Tangible Personal Property
Physical items you can touch and own, like clothes or furniture.
Transaction Fees
Money charged by banks for processing credit card payments.

Limits and Unknowns

  • The bill does not specify the exact length of time businesses must wait before sending sales tax to the state.
  • It is unclear if this will affect all types of transactions or just those involving credit and debit cards.

Bill History

  1. 2025-04-08 Tennessee General Assembly

    Assigned to General Subcommittee of Senate Finance, Ways & Means Committee

  2. 2025-03-18 Tennessee General Assembly

    Refer to Senate Finance, Ways & Means Committee w/ negative recommendation

  3. 2025-02-25 Tennessee General Assembly

    Refer to Senate Finance, Ways & Means Committee Revenue Subcommittee

  4. 2025-02-12 Tennessee General Assembly

    Passed on Second Consideration, refer to Senate Finance, Ways, and Means Committee

  5. 2025-02-10 Tennessee General Assembly

    Assigned to s/c Finance, Ways, and Means Subcommittee

  6. 2025-02-10 Tennessee General Assembly

    Introduced, Passed on First Consideration

  7. 2025-02-06 Tennessee General Assembly

    P2C, ref. to Finance, Ways, and Means Committee

  8. 2025-02-05 Tennessee General Assembly

    Intro., P1C.

  9. 2025-02-05 Tennessee General Assembly

    Filed for introduction

  10. 2025-02-03 Tennessee General Assembly

    Filed for introduction

Official Summary Text

Abstract summarizes the bill.

Current Bill Text

Read the full stored bill text 
SENATE BILL 1081
By Johnson

HOUSE BILL 714
By Baum

HB0714
002835
- 1 -

AN ACT to amend Tennessee Code Annotated, Title 67,
Chapter 6, relative to sales and use taxes.

WHEREAS, Tennessee's merchants are Tennessee's primary tax collectors; and
WHEREAS, these merchants pay fees on sales taxes associated with card transactions;
and
WHEREAS, these fees are applied on the entire cost of the transaction including the
sales tax portion; and
WHEREAS, merchants should not have to pay fees on behalf of the State, the State
being the sole beneficiary of the sales tax portion of the transaction; and
WHEREAS, in the interest of fairness, the State should find a method to make
merchants whole without disruption of the collection and remittance of sales taxes by
merchants; and
WHEREAS, the financial principle of time value of money allows merchants to retain
sales tax payments for a period to allow merchants to reasonably recoup these fees before
remitting the sales tax collected; now, therefore,
BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF TENNESSEE:
SECTION 1. Tennessee Code Annotated, Title 67, Chapter 6, Part 1, is amended by
adding the following as a new section:
(a) The commissioner, in consultation with the state treasurer, shall establish a
sales tax remittance schedule that allows dealers making sales of tangible personal
property to reasonably offset the burden of transaction fees associated with the
collection of sales tax on those sales. The schedule must extend the holding time of

- 2 - 002835

accumulated sales tax for a period within which dealers can reasonably recoup their
transaction costs before remittance to the department. This holding time must be
derived from:
(1) This state's total sales tax remittance during the previous year;
(2) The percentage of transactions conducted through credit card and
debit card tender;
(3) This state's fees to its residents for credit card transactions, including
service and convenience fees; and
(4) The risk-free federal funds rate as defined by the federal reserve.
(b) The commissioner shall monitor the holding time on a biannual basis for
appropriateness.
(c) This section does not require the department to change its current processes
or forms for collecting and remitting sales tax other than establishing an extended
timeframe for remittance.
SECTION 2. This act takes effect upon becoming a law, the public welfare requiring it.