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HB0780 • 2026

Economic and Community Development, Dept. of

AN ACT to amend Tennessee Code Annotated, Title 4, Chapter 3; Title 4, Chapter 49; Section 9-16-101; Title 54, Chapter 4; Title 55, Chapter 4; Title 57, Chapter 5, Part 2; Title 57, Chapter 3, Part 3; Title 67, Chapter 3, Part 9; Title 67, Chapter 4, Part 9 and Title 67, relative to allocations to counties and municipalities.

Taxes
Active

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

Sponsor
Stevens, Reeves
Last action
2025-05-27
Official status
Effective date(s) 01/01/2026
Effective date
Not listed

Plain English Breakdown

Checked against official source text during the last sync.

Population-Based Allocations for Counties and Municipalities

This bill requires annual population estimates to ensure fair distribution of state sales tax revenue among counties and municipalities based on their populations.

What This Bill Does

  • Requires the Department of Economic and Community Development to revise and certify county and municipal populations before July 1 each year during the interim between regular federal censuses.
  • Directs the Boyd Center for Business and Economic Research at the University of Tennessee, through the Tennessee state data center, to provide annual population estimates to the Department of Economic and Community Development for review and certification.
  • Ensures that state sales tax revenue is distributed based on these updated population figures, except when a special census or regular federal census results in revised populations.

Who It Names or Affects

  • Counties and municipalities in Tennessee
  • The Department of Economic and Community Development
  • The Boyd Center for Business and Economic Research at the University of Tennessee

Terms To Know

Department of Economic and Community Development
A state agency responsible for economic development initiatives.
Boyd Center for Business and Economic Research
An organization at the University of Tennessee that provides research on business and economic matters.

Limits and Unknowns

  • The bill only affects allocations based on population estimates, not other types of funding.
  • It does not specify how to handle discrepancies between estimated populations and actual census data.
  • Effective date is January 1, 2026.

Amendments

These notes stay tied to the official amendment files and metadata from the legislature.

Amendment 1-0 to HB0780

Plain English: The amendment requires the Department of Economic and Community Development to revise and certify population estimates annually for each county and municipality based on data from the Boyd Center for Business and Economic Research at the University of Tennessee.

  • Adds a new subdivision (G) in Section 67-6-103(a)(3) requiring annual population revisions by the Department of Economic and Community Development before July 1 each year.
  • Establishes a new section, 4-3-710, detailing how the Boyd Center for Business and Economic Research generates annual population estimates and provides them to the Department of Economic and Community Development for certification.
  • Amends several sections (67-1-119, 4-3-1015, and 4-49-104(e)(2)) to ensure that money allocations to counties and municipalities are based on these annual population revisions.
  • The amendment text does not specify the exact criteria or methods for revising populations beyond referencing the Boyd Center's estimates.
  • It is unclear how discrepancies between special censuses and annual revisions will be handled in practice.
Amendment 1-0 to SB0875

Plain English: The amendment requires the Department of Economic and Community Development to revise and certify population estimates annually based on data from the University of Tennessee's Boyd Center, ensuring equitable distribution of funds.

  • Adds a requirement for annual population revisions by the Department of Economic and Community Development using data from the University of Tennessee’s Boyd Center.
  • Allocates up to $42,000 annually from sales tax revenue to support the Boyd Center's work on population estimates.
  • Specifies that this funding can be reviewed and potentially increased each year with approval.
  • The exact process for increasing the annual allocation of $42,000 is not fully detailed in the amendment text.

Bill History

  1. 2025-05-27 Tennessee General Assembly

    Effective date(s) 01/01/2026

  2. 2025-05-27 Tennessee General Assembly

    Pub. Ch. 501

  3. 2025-05-27 Tennessee General Assembly

    Comp. became Pub. Ch. 501

  4. 2025-05-21 Tennessee General Assembly

    Signed by Governor.

  5. 2025-05-09 Tennessee General Assembly

    Transmitted to Governor for his action.

  6. 2025-05-08 Tennessee General Assembly

    Signed by Senate Speaker

  7. 2025-04-30 Tennessee General Assembly

    Signed by H. Speaker

  8. 2025-04-24 Tennessee General Assembly

    Enrolled; ready for sig. of H. Speaker.

  9. 2025-04-21 Tennessee General Assembly

    Passed Senate, Ayes 32, Nays 0

  10. 2025-04-21 Tennessee General Assembly

    Amendment withdrawn. (Amendment 1 - SA0333)

  11. 2025-04-21 Tennessee General Assembly

    Senate substituted House Bill for companion Senate Bill.

  12. 2025-04-21 Tennessee General Assembly

    Received from House, Passed on First Consideration

  13. 2025-04-21 Tennessee General Assembly

    Engrossed; ready for transmission to Sen.

  14. 2025-04-21 Tennessee General Assembly

    Passed H., Ayes 92, Nays 2, PNV 0

  15. 2025-04-21 Tennessee General Assembly

    Sponsor(s) Added.

  16. 2025-04-21 Tennessee General Assembly

    Am. withdrawn. (Amendment 1 - HA0522)

  17. 2025-04-21 Tennessee General Assembly

    Sponsor(s) Added.

  18. 2025-04-21 Tennessee General Assembly

    Companion House Bill substituted

  19. 2025-04-17 Tennessee General Assembly

    H. Placed on Regular Calendar for 4/21/2025

  20. 2025-04-17 Tennessee General Assembly

    Placed on cal. Calendar & Rules Committee for 4/17/2025

  21. 2025-04-17 Tennessee General Assembly

    Rec. for pass; ref to Calendar & Rules Committee

  22. 2025-04-17 Tennessee General Assembly

    Rec. for pass by s/c ref. to Finance, Ways, and Means Committee

  23. 2025-04-17 Tennessee General Assembly

    Placed on Senate Regular Calendar for 4/21/2025

  24. 2025-04-16 Tennessee General Assembly

    Placed on s/c cal Finance, Ways, and Means Subcommittee for 4/17/2025

  25. 2025-04-16 Tennessee General Assembly

    Sponsor(s) Added.

  26. 2025-04-15 Tennessee General Assembly

    Refer to Senate Calendar Committee

  27. 2025-04-15 Tennessee General Assembly

    Recalled from Senate Finance, Ways & Means Committee

  28. 2025-04-14 Tennessee General Assembly

    Placed on Senate Finance, Ways, and Means Committee calendar for 4/15/2025

  29. 2025-04-14 Tennessee General Assembly

    Rule #83(8) Suspended, to be heard in Senate Finance, Ways & Means Committee on 4/15/2025

  30. 2025-04-10 Tennessee General Assembly

    Sponsor(s) Added.

  31. 2025-04-09 Tennessee General Assembly

    Placed on s/c cal Finance, Ways, and Means Subcommittee for 4/14/2025

  32. 2025-04-09 Tennessee General Assembly

    Sponsor(s) Added.

  33. 2025-04-07 Tennessee General Assembly

    Sponsor(s) Added.

  34. 2025-04-02 Tennessee General Assembly

    Recommended for passage with amendment/s, refer to Senate Finance. Ways & Means Committee Ayes 8, Nays 0 PNV 0

  35. 2025-04-01 Tennessee General Assembly

    Placed on Senate State and Local Government Committee calendar for 4/2/2025

  36. 2025-04-01 Tennessee General Assembly

    Action deferred in Senate State and Local Government Committee to 4/2/2025

  37. 2025-03-26 Tennessee General Assembly

    Placed on Senate State and Local Government Committee calendar for 4/1/2025

  38. 2025-03-13 Tennessee General Assembly

    Sponsor(s) Added.

  39. 2025-03-03 Tennessee General Assembly

    Sponsor(s) Added.

  40. 2025-02-26 Tennessee General Assembly

    Placed behind the budget

  41. 2025-02-20 Tennessee General Assembly

    Sponsor(s) Added.

  42. 2025-02-19 Tennessee General Assembly

    Placed on s/c cal Finance, Ways, and Means Subcommittee for 2/26/2025

  43. 2025-02-12 Tennessee General Assembly

    Passed on Second Consideration, refer to Senate State and Local Government Committee

  44. 2025-02-10 Tennessee General Assembly

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

  45. 2025-02-10 Tennessee General Assembly

    Introduced, Passed on First Consideration

  46. 2025-02-06 Tennessee General Assembly

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

  47. 2025-02-05 Tennessee General Assembly

    Intro., P1C.

  48. 2025-02-05 Tennessee General Assembly

    Filed for introduction

  49. 2025-02-04 Tennessee General Assembly

    Filed for introduction

Official Summary Text

Present la
w requires that various funds and revenues be allocated and distributed to counties and
municipalities

in the proportion
that
the
ir
population
s
bear to the aggregate population of all
counties and
municipalities within the state, according to the latest fe
deral census and
special
censuses
.

This bill requires t
he department of economic and community development
to
revise and certify the population of each county and municipality, and the aggregate population of the state, prior to July 1 each year during t
he interim between the regular decennial federal census for purposes of ensuring equitable allocation and distribution of
state sales tax revenue
. Th
is bill requires th
e Boyd Center for Business and Economic Research at the University of Tennessee, throug
h the Tennessee state data center,
to
generate annual population estimates for each county and municipality and provide the estimates to the department of economic and community development for review and certification. Prior to July 1, the department of
economic and community development
is required to
provide the revised, certified populations of each county and municipality to the department of revenue and the department of finance and administration.
This bill generally requires that for years when th
ere is not a federal census or special census,

funds and
revenue
s that are subject to allocation and distribution based on population

must b
e allocated and distributed to all counties and metropolitan governments
based on the certified populations that are
based on the Boyd Center's estimates.

This bill takes effect January 1, 2026.

Current Bill Text

Read the full stored bill text
SENATE BILL 875
By Reeves

HOUSE BILL 780
By Stevens

HB0780
002903
- 1 -

AN ACT to amend Tennessee Code Annotated, Title 4,
Chapter 3; Title 4, Chapter 49; Section 9-16-101;
Title 54, Chapter 4; Title 55, Chapter 4; Title 57,
Chapter 5, Part 2; Title 57, Chapter 3, Part 3; Title
67, Chapter 3, Part 9; Title 67, Chapter 4, Part 9
and Title 67, relative to allocations to counties and
municipalities.

BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF TENNESSEE:
SECTION 1. Tennessee Code Annotated, Section 67-6-103(a)(3)(A), is amended by
adding the language "and according to subdivision (a)(3)(G)" immediately after the language
"according to the latest federal census and other censuses authorized by law".
SECTION 2. Tennessee Code Annotated, Section 67-6-103(a)(3), is amended by
adding the following as a new subdivision (G):
Notwithstanding the right or ability of a county or municipality to take a special
census at any time during the interim between the regular decennial federal census
under this section or another law, the department of economic and community
development shall revise and certify the population of each county and municipality, and
the aggregate population of the state, prior to July 1 each year during the interim
between the regular decennial federal census according to this subdivision (a)(3)(G) for
purposes of ensuring equitable allocation and distribution of moneys under this
subdivision (a)(3). The Boyd Center for Business and Economic Research at the
University of Tennessee, through the Tennessee state data center, shall generate
annual population estimates for each county and municipality and provide the estimates
to the department of economic and community development for review and certification.
Prior to July 1, the department of economic and community development shall provide

- 2 - 002903

the revised, certified populations of each county and municipality to the department of
revenue and the department of finance and administration. The allocation and
distribution of moneys pursuant to this subdivision (a)(3) must be made according to the
revised populations certified under this subdivision (a)(3)(G), except in instances where
a jurisdiction's population is revised as a result of a special census or in a year in which
populations are revised as a result of the regular decennial federal census.
SECTION 3. Tennessee Code Annotated, Section 67-6-103(j)(4), is amended by adding
the language "or according to subdivision (a)(3)(G)" immediately after the language "according
to the latest federal census or other censuses authorized by law".
SECTION 4. Tennessee Code Annotated, Title 4, Chapter 3, Part 7, is amended by
adding the following as a new section:
4-3-710.
(a) Notwithstanding the right or ability of a county or municipality to take a
special census during the interim between the regular decennial federal census, the
department of economic and community development shall revise and certify the
population of each county and municipality, and the aggregate population of the state,
prior to July 1 each year during the interim between the regular decennial federal census
according to this section for purposes of ensuring equitable population-based allocation
and distribution of moneys to counties and municipalities.
(b) The Boyd Center for Business and Economic Research at the University of
Tennessee, through the Tennessee state data center, shall generate annual population
estimates for each county and municipality and provide the estimates to the department
of economic and community development for review and certification.
(c) Prior to July 1, the department of economic and community development
shall provide the revised, certified populations of each county and municipality to the

- 3 - 002903

department of revenue and the department of finance and administration. The allocation
and distribution of moneys to counties and municipalities must be made according to the
revised populations certified under this section, except in instances where a jurisdiction's
population is revised as a result of a special census or in a year in which populations are
revised as a result of the regular decennial federal census.
SECTION 5. Tennessee Code Annotated, Title 67, Chapter 1, Part 1, is amended by
adding the following as a new section:
67-1-119.
Notwithstanding another law to the contrary, the allocation and distribution of
moneys to counties and municipalities under this title, title 54, title 55, or title 57 based
on population must be made according to the revised populations certified by the
department of economic and community development under § 4-3-710, except in
instances where a jurisdiction's population is revised as a result of a special census or in
a year in which populations are revised as a result of the regular decennial federal
census.
SECTION 6. Tennessee Code Annotated, Title 4, Chapter 3, Part 10, is amended by
adding the following as a new section:
4-3-1015.
Except as otherwise expressly provided by law, the allocation and distribution of
moneys to counties and municipalities based on population must be made according to
the revised populations certified by the department of economic and community
development under § 4-3-710, except in instances where a jurisdiction's population is
revised as a result of a special census or in a year in which populations are revised as a
result of the regular decennial federal census.

- 4 - 002903

SECTION 7. Tennessee Code Annotated, Section 4-49-104(e)(2), is amended by
addling the following language at the end of the subdivision:
Notwithstanding another law to the contrary, the allocation and distribution of moneys to
counties and municipalities under this subdivision (e)(2) must be made according to the
revised populations certified by the department of economic and community
development under § 4-3-710, except in instances where a jurisdiction's population is
revised as a result of a special census or in a year in which populations are revised as a
result of the regular decennial federal census.
SECTION 8. This act takes effect January 1, 2026, the public welfare requiring it.