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HB1181 • 2026

Taxes, Sales

AN ACT to amend Tennessee Code Annotated, Title 67, Chapter 6, Part 3, relative to taxation of broadband equipment and services.

Taxes
Enacted

This bill passed the Legislature and reached final enactment based on the latest official action.

Sponsor
Hicks T, Jackson
Last action
2025-05-15
Official status
Comp. became Pub. Ch. 449
Effective date
Not listed

Plain English Breakdown

Checked against official source text during the last sync.

Broadband Equipment Tax Exemption Extension

This bill extends until June 30, 2027, the tax exemption for purchases and leases of equipment used to provide broadband services or internet access.

What This Bill Does

  • Removes the expiration date of June 30, 2025, for the current tax exemption on equipment used in producing broadband communications or providing internet access.
  • Extends the tax exemption period until June 30, 2027.
  • Requires the Tennessee Department of Revenue to reimburse counties and municipalities for any lost revenue due to this tax exemption.

Who It Names or Affects

  • Businesses that provide broadband services or internet access
  • Counties and municipalities in Tennessee

Terms To Know

Broadband communications services
Services for sending, receiving, storing, transmitting, retransmitting, amplifying, switching, providing connectivity for, or routing communications.
Sales and use tax exemption
A rule that allows certain items to be purchased without paying sales or use taxes.

Limits and Unknowns

  • The bill does not specify what happens after June 30, 2027.
  • It is unclear how much revenue will be lost by counties and municipalities due to the extended tax exemption.

Amendments

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

Amendment 1-0 to HB1181

Plain English: The amendment changes the expiration date for a tax exemption on broadband equipment and services from June 30, 2025 to June 30, 2027.

  • Extends the period during which certain broadband equipment and services are exempt from taxation until June 30, 2027.
  • The amendment does not provide details about what specific broadband equipment and services are covered by this exemption.
Amendment 1-0 to SB0925

Plain English: The amendment changes the expiration date for a tax exemption on broadband equipment and services from June 30, 2025 to June 30, 2027.

  • Extends the period during which certain broadband equipment and services are exempt from taxation until June 30, 2027.
  • The amendment does not provide details about what specific broadband equipment and services are covered by this tax exemption.

Bill History

  1. 2025-05-15 Tennessee General Assembly

    Comp. became Pub. Ch. 449

  2. 2025-05-15 Tennessee General Assembly

    Effective date(s) 05/09/2025

  3. 2025-05-15 Tennessee General Assembly

    Pub. Ch. 449

  4. 2025-05-09 Tennessee General Assembly

    Signed by Governor.

  5. 2025-05-01 Tennessee General Assembly

    Transmitted to Governor for action.

  6. 2025-04-30 Tennessee General Assembly

    Signed by H. Speaker

  7. 2025-04-29 Tennessee General Assembly

    Signed by Senate Speaker

  8. 2025-04-28 Tennessee General Assembly

    Enrolled and ready for signatures

  9. 2025-04-23 Tennessee General Assembly

    Sponsor(s) Added.

  10. 2025-04-22 Tennessee General Assembly

    Sponsor(s) Added.

  11. 2025-04-22 Tennessee General Assembly

    Comp. SB subst.

  12. 2025-04-22 Tennessee General Assembly

    Passed H., Ayes 95, Nays 2, PNV 0

  13. 2025-04-22 Tennessee General Assembly

    Am. withdrawn. (Amendment 1 - HA0510)

  14. 2025-04-22 Tennessee General Assembly

    Subst. for comp. HB.

  15. 2025-04-22 Tennessee General Assembly

    Engrossed; ready for transmission to House

  16. 2025-04-22 Tennessee General Assembly

    Passed Senate as amended, Ayes 32, Nays 0

  17. 2025-04-22 Tennessee General Assembly

    Senate adopted Amendment (Amendment 1 - SA0445)

  18. 2025-04-21 Tennessee General Assembly

    Placed on Senate Regular Calendar for 4/22/2025

  19. 2025-04-21 Tennessee General Assembly

    Recommended for passage with amendment/s, refer to Senate Calendar Committee Ayes 11, Nays 0 PNV 0

  20. 2025-04-17 Tennessee General Assembly

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

  21. 2025-04-17 Tennessee General Assembly

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

  22. 2025-04-17 Tennessee General Assembly

    Rec. for pass. if am., ref. to Calendar & Rules Committee

  23. 2025-04-17 Tennessee General Assembly

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

  24. 2025-04-17 Tennessee General Assembly

    Placed on Senate Finance, Ways, and Means Committee calendar for 4/21/2025

  25. 2025-04-16 Tennessee General Assembly

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

  26. 2025-04-14 Tennessee General Assembly

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

  27. 2025-04-14 Tennessee General Assembly

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

  28. 2025-04-09 Tennessee General Assembly

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

  29. 2025-02-26 Tennessee General Assembly

    Placed behind the budget

  30. 2025-02-25 Tennessee General Assembly

    Sponsor(s) Added.

  31. 2025-02-25 Tennessee General Assembly

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

  32. 2025-02-19 Tennessee General Assembly

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

  33. 2025-02-18 Tennessee General Assembly

    Placed on Senate FW&M Revenue Subcommittee calendar for 2/25/2025

  34. 2025-02-18 Tennessee General Assembly

    Refer to Senate F,W&M Revenue Subcommittee

  35. 2025-02-12 Tennessee General Assembly

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

  36. 2025-02-12 Tennessee General Assembly

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

  37. 2025-02-12 Tennessee General Assembly

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

  38. 2025-02-10 Tennessee General Assembly

    Intro., P1C.

  39. 2025-02-10 Tennessee General Assembly

    Introduced, Passed on First Consideration

  40. 2025-02-06 Tennessee General Assembly

    Filed for introduction

  41. 2025-02-05 Tennessee General Assembly

    Filed for introduction

Official Summary Text

Until June 30, 2025, p
resent law provides that there is exempt from the sales and use tax purchases and leases of all equipment, machinery, software, ancillary components, appurtenances, accessories, or other infrastructure that is used in whole or in part to either:



Produce broadband communications services, including broadcasting, distributing, sending, receiving, storing, transmitting, retransmitting, amplifying, switching, providing connectivity for, or routing communications services.



Provide internet access.

However, s
uch exemption does not apply to the retail sale of personal consumer electronics, including, but not limited to, smartphones, computers, and tablets, and consumer-grade modems and Wi-Fi routers. The commissioner of revenue must reimburse counties and mun
i
cipalities for loss of revenue resulting from such tax exemption. Subject to appropriations, a sum must be earmarked and allocated from the general fund for this purpose.

This bill removes the repeal date of June 30, 2025, for the provisions above.

ON
APRIL 22, 2025, THE SENATE ADOPTED AMENDMENT #1 AND PASSED SENATE BILL 925, AS AMENDED.

AMENDMENT #1 sets
the end date
at
June 30, 202
7
, f
or
the exemption from sales and use tax for purchases and leases of equipment and infrastructure used to produce br
oadband communications services or provide internet access
.

Current Bill Text

Read the full stored bill text 
SENATE BILL 925
By Jackson

HOUSE BILL 1181
By Hicks T

HB1181
002181
- 1 -

AN ACT to amend Tennessee Code Annotated, Title 67,
Chapter 6, Part 3, relative to taxation of broadband
equipment and services.

BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF TENNESSEE:
SECTION 1. Tennessee Code Annotated, Section 67-6-391(a), is amended by deleting
the language "through June 30, 2025,".
SECTION 2. The Tennessee Code Commission is requested to amend the heading to
Tennessee Code Annotated, Section 67-6-391, to read "Tennessee broadband equipment and
services exemption.".
SECTION 3. This act takes effect upon becoming a law, the public welfare requiring it.